In 2026, the Ministry of the Interior of the Republic of Cyprus plans to roll out a major reform of the Department of Lands and Surveys – the body that effectively combines the roles of land registry and cadastre. The aim is to make the property registration system simpler, more transparent and more predictable for buyers, sellers, developers, agents, investment funds and banks.
According to the newspaper Politis, Minister of the Interior Constantinos Ioannou describes the modernisation of the property registration system as one of the ministry’s top priorities for the coming years. Below are three main directions on which work is already under way.
A new approach to calculating the Transfer Fee
The Transfer Fee is a government levy on the transfer of ownership when buying resale property. It is paid by the buyer when the transaction is registered with the Land Registry.
At present, the system works like this: the Department of Lands and Surveys assesses what it considers to be the market value of a property, based on comparable sales and its internal data, and calculates the fee on that valuation. In practice this often means:
- the official valuation differs from the price stated in the sale contract;
- disputes and delays arise, appeals are filed;
- the buyer cannot accurately forecast the final transaction costs in advance;
- the State faces reputational risks because the system appears opaque and unpredictable.
What is planned to change
The Ministry of the Interior is preparing a move to a simpler model: the basis for calculating the Transfer Fee will be the price declared in the sale contract.
- A separate valuation by the Land Registry would remain only for special cases, such as exchanges of property or complex ownership structures.
- The State would retain the right to intervene where it is obvious that the contract price has been artificially understated or otherwise distorted. In such cases, the fee may be recalculated on the basis of the market value.
What this means for buyers
- It becomes easier to calculate the transaction budget already at the negotiation stage.
- The risk of an “unexpected” extra bill from the Land Registry is reduced.
- Transactions should progress faster, with fewer appeals and less reworking of documents.
It is important to keep in mind that where a property is subject to VAT on purchase (typically newly built property at 19%), the Transfer Fee, as under the current rules, may not be payable – the precise conditions remain governed by the tax and land legislation in force at the time of the transaction.
Full digitalisation of forms and procedures
The second strand of the reform concerns bureaucracy. At present, the Department uses around 150 different forms and applications. Some of them are still completed by hand, on paper. This:
- slows down data processing;
- increases the risk of mistakes;
- complicates life for both private individuals and professional market participants.
Planned changes by 2026
The Ministry of the Interior has announced its intention to:
- review and modernise all key forms and applications;
- publish templates and user-friendly completion guidelines;
- enable electronic submission of a significant proportion of applications;
- make it easier for citizens and businesses to obtain digital documents.
Practical effects
- Fewer in-person visits to departmental offices.
- Clearer requirements for documentation relating to transactions, inheritance and transfers of title.
- Potentially quicker processing times and fewer formal refusals due to technical errors.
New rules for auctions of undivided property
The problem of undivided co-ownership is one of the most sensitive issues on the Cypriot property market. This concerns properties where the shares between co-owners are structured in such a way that:
- no single party can properly dispose of the property;
- it is very difficult to reach agreement;
- years can be lost in legal procedures with no real progress.
According to the Ministry of the Interior, there are currently hundreds of such cases – 866 properties are effectively “stuck” in the system due to shortcomings in the existing legislation. Auctioneers are reluctant to deal with such assets: the procedures are cumbersome and the incentives are weak.
What has already been done and what comes next
The law on compulsory auctions of undivided property dates back to 1994, but in today’s environment it has proved ineffective. In 2025 an updated set of regulations was prepared and published, with full implementation expected by 2026.
The key elements of the new model are:
- A single, centralised venue for auctions. This is intended to make the procedure more transparent and easier for the market to understand.
- Revised payment rules. The process of making and receiving payments becomes more structured.
- Higher remuneration for auctioneers. This should make it more attractive for them to work with such properties and increase interest in this segment.
- The involvement of private valuers. In certain cases, independent professionals will be able to carry out valuations, rather than only state bodies.
- The prospect of electronic auctions. If market interest in such assets remains low, the Ministry is considering a move to online auctions (e-auctions).
What this means for owners and investors
- Co-owners of problematic properties gain a more realistic route to “unfreezing” their asset through a more workable sale procedure.
- For investors, this may become a separate niche: acquiring shares and distressed assets through clearer, more transparent auctions.
Important note
All of the measures described are part of a reform package currently being developed by the Ministry of the Interior of Cyprus. The precise timetable and details of implementation depend on the final adoption of laws, secondary legislation and the technical readiness of the Department of Lands and Surveys.
Before buying or selling property in 2026 and beyond, it is advisable to consult a lawyer, property professional or tax adviser to check the rules that apply at the time of your specific transaction.
