A sales and purchase agreement (SPA) is a legal contract that obligates a buyer to buy and a seller to sell a product or service. SPAs are found in various business transactions such as sale of assets or sale shares. In Cyprus they are most often associated with property deals as a way of finalising the interests of both parties before closing the deal.
The Cyprus Constitution guarantees the right of private property and does not discriminate between Cypriots and non-Cypriots (foreigners) .The legal framework that covers the Sale and Purchase of property and other assets in Cyprus is vast , here are some examples:
Immovable Property (Tenure, Registration & Valuation) Law, Cap. 224.
Sale of Land (Specific Performance) Law, Cap. 232.
Acquisition of Immovable Property (Aliens) Law, Cap. 109. Immovable Property (Transfer and Mortgage) Law, No. 9/65. Immovable Property Tax Law, Cap. 322.
Immovable Property (Towns) Tax Law, No. 89/62.
Capital Gains Tax Law, No. 52/80.
Town and Country Planning Law of 1972.
Rent Control Law, No. 23/83. Trustee Law, Cap. 193.
Central Bank of Cyprus Law, No. 138(I)/2002. Movement of Capital Law, No. 115(I)/2003.
The law governing the acquisition of immovable property in Cyprus by foreigners is the Cypriot Acquisition of Immovable Property (Foreigners) Law, Cap. 109 of the Laws of Cyprus (hereinafter referred to as “the Law”), as amended from time to time.
With regards to the sale and purchase of land and premises, before an signing an SPA we recommend, requesting a structural survey, if there is enough time to obtain one. We also recommend Certificates of title for any such assets to be obtained and reviewed by us. As a result of the investigation, we will then draft an SPA including a warranty by the seller that it (or the target company) has good title and the property is free from encumbrances. It is also advisable to check whether all relevant planning legislation has been complied with, especially if the buyer intends to make alterations or improvements to any buildings, or is planning to effect any new construction. More details on real estate law and property acquisitions and procedures can be found in our Property law sections.
Our aim at vasileou law is to make sure our clients acquire what they think you are paying for.