To buy a property in Cyprus from the UK, you convert pounds to euros and remit the funds to Cyprus — ideally fixing your exchange rate with a forward contract. Because post-Brexit purchases by UK buyers need Council of Ministers permission and can take several months to over a year to complete, the GBP/EUR rate can move significantly before you pay, changing the sterling cost of a euro-priced home.
This guide is for UK buyers purchasing a home, holiday property or retirement base in the Republic of Cyprus. It covers the currency challenge specific to Cyprus, how the buying process affects when you send money, what to budget for, the important difference between the south and north of the island, and how to protect your sterling cost while the GBP to EUR rate moves.
What currency do you buy Cypriot property in?
Property in the Republic of Cyprus is priced and paid for in euros (EUR). As a UK buyer, you’ll convert sterling to euros and send the funds to Cyprus — and Cypriot rules require that the money used to buy a property comes from outside the country. The size of these transfers, often £200,000 or more, is exactly where the exchange rate makes a material difference to what you pay.
The north of the island is different. Northern Cyprus uses the Turkish lira, and properties there carry well-documented title-deed risks. This guide focuses on the Republic of Cyprus (the south), which is an EU member, uses the euro, and has a long-established, regulated market familiar to British buyers.
The currency challenge when buying in Cyprus
The defining feature of a Cyprus purchase is time. Since Brexit, UK buyers are treated as third-country nationals and must apply to the Council of Ministers for permission to acquire the property. Permission is routinely granted and refusals are rare, but the process commonly takes several months — and can stretch to a year — before the title deeds transfer into your name.
That long gap between agreeing a price and completing is where currency risk lives. The pound has historically swung by several cents against the euro within a few months. On a €400,000 property, even a modest move can change your cost by five figures. Our GBP to EUR forecast and guide on whether now is a good time to buy euros give the current market context, supported by the Bank of England and European Central Bank rate paths.
How the buying process works — and when you send money
A Cyprus purchase involves several euro payments at different stages, each exposed to the rate on the day unless you fix it in advance.
- Reserve the property. You pay a reservation fee (typically €2,000–€5,000) to take it off the market while checks are done.
- Appoint an independent lawyer. Use a lawyer independent of the developer, vendor and agent to run due diligence and verify the title-deed status before you commit.
- Sign the Contract of Sale and pay the deposit. A deposit of around 10–30% is usual. Your lawyer deposits the contract at the Land Registry, which protects your rights to the property while title transfer is pending.
- Apply for Council of Ministers permission. As a non-EU buyer you can purchase one home (or a plot up to roughly 4,014 sq m for a residence). Your contract should include a clause covering the rare event that permission is refused.
- Transfer the balance and complete. Once permission is granted, the balance is paid, fees settled, and the title is transferred at the Department of Lands and Surveys.
Note that several of these are large international transfers. Have your account and documentation ready before the first payment is due — see our guide on the documents needed for large international transfers. Take care with payment details too: overseas property deposits are a known target for fraud, so always verify account details by phone before sending. Our guide on conveyancing fraud and property deposit scams explains the warning signs.
What does buying in Cyprus cost on top of the price?
Budget for roughly 8–12% on top of the purchase price (higher on new builds where 19% VAT applies). These are tax and legal matters, so confirm the exact figures with your Cypriot lawyer — but as a planning guide:
| Cost | Typical level | Notes |
|---|---|---|
| VAT (new builds) | 19% standard, or 5% reduced | The reduced 5% rate may apply to a qualifying first/primary residence up to set size limits |
| Transfer fees | 3–8% sliding scale | Reduced by 50% on resales; not charged where VAT has been paid |
| Stamp duty | About 0.15–0.20% | On the contract value |
| Legal fees | Around €1,500–€3,000 | Independent lawyer recommended |
Because these are euro costs, the exchange rate affects the total sterling outlay, not just the headline price. Check the live rate on our currency converter when you budget.
South vs north: why it matters for your money
Property in the Republic of Cyprus (south) is bought in euros within an EU legal framework, and the Contract of Sale deposited at the Land Registry gives buyers a recognised legal protection. Northern Cyprus is a separate matter: purchases are often made in Turkish lira, pounds or euros, and some properties sit on land with disputed ownership dating from 1974. The UK government specifically warns British buyers about ownership disputes in the north.
If you are considering the north, treat it with extra caution, take independent legal guidance, and be clear in writing about who bears the currency risk on staged payments. For most UK buyers seeking security, the south’s euro-based, EU-regulated market is the more straightforward route. The UK government’s guidance for British nationals in Cyprus is a useful starting point.
How to protect your exchange rate on a Cyprus purchase
A forward contract lets you fix today’s exchange rate for a payment due later — up to around 12 months ahead — so your sterling cost is locked even if the market moves while you wait for permission and completion. Given how long Cyprus purchases can take, this is the tool that most directly addresses the corridor’s main risk.
Here is an illustrative example. On a €400,000 property, at an exchange rate of €1.18 to the pound the cost is about £338,983. If the rate slips to €1.14 by the time you complete, the same property costs about £350,877 — a difference of roughly £11,900. The rates here are illustrative; check the live rate for your own figures. Fixing the rate early with a forward contract removes that uncertainty.
As Anthony Bull, CEO of Cambridge Currencies, puts it: “With Cyprus, the permission stage means buyers often wait months between agreeing a price and paying the balance. Fixing the rate at the outset means the budget you set when you fell in love with the place still holds when the paperwork finally clears.”
If your timing is flexible and you want to aim for a particular level, a limit order can target a specific rate and execute automatically if the market reaches it. A specialist can combine these tools across your reservation, deposit and completion payments.
Why use a currency specialist for a Cyprus property purchase?
In our experience helping UK buyers across the Mediterranean, the buyers who fare best are the ones who fix their costs early and coordinate their transfers with their lawyer’s timeline. A specialist gives you a transparent margin agreed up front, forward contracts to lock your rate, and a dedicated point of contact who understands property timelines — with every transfer completed by phone, not through an app.
Cambridge Currencies works exclusively with FCA-authorised payment partners, Currencycloud (FRN 900199) and ScioPay (FRN 927951), so your funds are safeguarded at every stage. If you are weighing up providers, see our guide on choosing a trustworthy currency broker for buying property abroad and our wider FX services for overseas property buyers. Buying elsewhere in the region too? Compare our guides on buying property in Spain and buying property in Greece.
Frequently Asked Questions
Can UK citizens still buy property in Cyprus after Brexit?
Yes. British buyers remain one of the largest foreign buyer groups in Cyprus. As non-EU nationals they can buy one residential property (or a plot for a home), subject to Council of Ministers permission, which is routinely granted.
What currency do I pay in when buying in Cyprus?
Property in the Republic of Cyprus is bought in euros. You convert pounds to euros and remit the funds from outside Cyprus. Northern Cyprus is separate and often uses the Turkish lira.
How long does it take to buy a property in Cyprus?
Often two to six months, and longer where Council of Ministers permission is still being processed — which can take several months to a year. This extended timeline is the main reason to fix your exchange rate early.
Should I lock my exchange rate with a forward contract?
A forward contract fixes today’s rate for a payment due later, so your sterling cost is protected while you wait for permission and completion. Whether it suits you depends on your timeline and budget — a specialist can talk you through the options.
What are the extra costs of buying in Cyprus?
Budget for roughly 8–12% on top of the price: VAT (19%, or a reduced 5% on a qualifying primary residence), transfer fees (reduced 50% on resales), stamp duty and legal fees. Confirm exact figures with your Cypriot lawyer.
Is buying in North Cyprus different?
Yes. Northern Cyprus uses the Turkish lira and some properties carry title-deed disputes dating from 1974. The UK government warns British buyers about ownership issues there, so take independent legal guidance before proceeding.
Cambridge Currencies helps UK buyers purchase property in Cyprus with confidence — fixing your GBP to EUR rate, coordinating payments with your completion timeline, and giving you a dedicated specialist throughout. Request a quote or speak to a specialist about your Cyprus purchase today. Every transfer is completed by phone with a dedicated specialist.
