Buying a property in Cyprus can be a dream, or a disaster.
Every year, foreign buyers lose money, get caught in legal nightmares, or discover hidden defects in their new homes. From shady developers to missing title deeds, the risks are real.
In this article we break down 8 of the most serious problems buyers face, and more importantly, we show you how to avoid them.
At Clover.Tax, we connect our clients with vetted developers and provide independent legal support
1. Trusting the Seller's Lawyer Instead of Hiring Your Own One of the most common and costly mistakes buyers make is trusting the seller’s lawyer. Many developers and estate agents recommend legal professionals they "work with", but those lawyers may be more loyal to closing the deal than protecting you.
We’ve seen buyers sign contracts that waived key rights or lost their deposit due to hidden clauses. We’ve also seen issues where real estate agents in Cyprus cause problems for the buyer by directing them to developers or legal teams that don’t offer independent advice, prioritising fast commissions over the buyer’s best interest.
How to Avoid It: 2. Unlicensed and Fraudulent Real Estate Agents Many buyers assume that all real estate agents in Cyprus are properly licensed and regulated. Unfortunately, this is not always the case. Some are unfortunately unlicensed or illegal agents, posing serious risks to buyers.
These unlicensed agents often engage in fraudulent transactions. A common example is selling properties without legal authority, particularly in occupied Northern Cyprus. If you buy through an illegal agent, you risk losing your investment, since the transaction won’t be legally protected.
We've heard our fair share of stories from people who unknowingly bought property through unlicensed agents, only to later discover they had no legal ownership or protection under Cyprus law.
How to Avoid It: Verify that your real estate agent is registered with the Cyprus Real Estate Agents Registration Council Avoid buying property in the occupied regions of Northern Cyprus Get in touch with us for an introduction to one of our carefully vetted and trusted real estate agencies 3. Buying Property Without a Title Deed You’d be surprised how many properties in Cyprus, especially new builds, don’t come with a separate title deed. Without it, you don’t legally own the property. You only have a contract of sale.
We’ve worked with clients who came to us seeking legal support after signing, only to discover they were still waiting for a title deed years later. In some cases, the developer had gone bankrupt, and creditors had laid claim to the land.
How to Avoid It: Prioritise properties that already have a separate title deed. When buying off-plan, ensure your contract includes a clause that guarantees your right to obtain the deed once it's issued. Have your lawyer check for any delays, risks, or issues with title issuance. For a more detailed breakdown of how title deeds work, and how to secure your legal ownership in Cyprus, check out our Comprehensive Guide on How to Secure Your Property Rights with Title Deeds
4. Poor Construction Quality from Unqualified Developers In Cyprus, anyone can call themselves a "property developer" as the legal requirements are surprisingly lax. That means some developers cut corners to save costs, using cheap materials or subcontracting to unskilled labour.
We’ve seen buyers move into homes that looked great on the surface but later revealed mould, cracked walls, or faulty plumbing just months after purchase.
How to Avoid It: Only work with established, well-reviewed developers who have a track record. Hire an independent structural surveyor to inspect the property before purchase. Ask for reviews or referrals from previous buyers to assess the developer’s reputation. 5. Hidden Debts or Legal Issues on the Property Some properties come with unpleasant financial baggage, such as developer mortgages, unpaid utility bills, or outstanding taxes. In some cases, buyers found themselves legally responsible for tens of thousands in unpaid debts they didn’t even create.
These issues are more common than you’d expect, especially when developers use the property as collateral or delay paying taxes.
How to Avoid It: Have your lawyer perform a Land Registry search Never assume that just because a property is new, it is free of debt. Get written confirmation from the seller that the property is debt-free. 6. Underestimating Taxes and Ongoing Costs Too many buyers fixate on the listing price and forget to calculate the real cost of owning property in Cyprus. Stamp duty, VAT, transfer fees, annual taxes, and even gated community fees can add up fast.
We’ve seen buyers who budgeted perfectly for the purchase, only to be blindsided by thousands in extra charges in the first year.
How to Avoid It: Obtain a full cost breakdown from your lawyer, including purchase taxes, transfer fees, and ongoing costs. If buying in a gated community, ask about annual maintenance fees and shared expenses. Factor in utility costs, insurance, and property management fees, especially if purchasing for rental income. Want to understand how your rental income will be taxed in Cyprus? Check out our Rental Income Tax Guide
7. Buying in the Wrong Area A property that looks ideal in the summer can feel like a mistake come winter. Some areas are packed with tourists for half the year but turn into ghost towns in the off-season. Others lack proper roads, medical services, or schools.
Some of our clients initially planned to buy in areas they believed would be perfect for short-term holiday rentals. But after reviewing their goals and assessing the location, we identified red flags like poor infrastructure, lack of consistent tourist traffic, and seasonal business closures. In those cases, we helped guide them toward areas that were more likely to deliver strong, sustainable returns.
How to Avoid It: For a detailed breakdown on where and how to buy, check our Ultimate Guide to Buying Property in Cyprus
8. Overlooking Ownership Disputes in Resale Properties Resale properties can come with legal baggage, such as divorce disputes, inheritance complications, or shared ownership that isn’t clearly defined. Some developers even act as brokers for resale homes they no longer own but still try to profit from.
We’ve seen buyers dragged into court over properties that were never legally transferred or were under dispute without their knowledge.
How to Avoid It: Ask your lawyer to check for any legal claims, disputes, or shared ownership attached to the property. Be especially cautious when buying resale properties through developers acting as brokers. Always verify who holds the title deed and that the seller has full legal authority to transfer ownership. Final Thoughts: Protect Yourself Before You Buy Buying real estate in Cyprus can be a smart investment, but it’s also filled with risks if you go in blind.
Most of the big problems buyers face are entirely avoidable with the right team behind you. A single misstep, like signing the wrong contract or trusting the wrong person, can cost you dearly.
That’s why we offer our Real Estate Service
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