Complete Guide to Property Renovation and Reconstruction in Cyprus: Process, Documents & Tips

• Renovation is the process of restoring or improving the current state of a property, such as painting, plumbing repairs, or updating interiors.
  
• Reconstruction is a more complex process involving changes in layout, building new rooms, modifying the façade, or upgrading infrastructure (e.g., modernizing utilities).

Property renovation and reconstruction can significantly increase real estate market value, making properties more attractive to buyers and tenants. This is especially relevant for older properties or commercial premises that need modernization.

Key Benefits:

• Increase in property value at resale 
• Higher rental income 
• Improved comfort and quality of life 
• Lower utility costs with energy-efficient solutions 

Step 1: Planning and Project Assessment

• Define the scope: cosmetic repairs, infrastructure upgrades, or full reconstruction. 
• Prepare a detailed budget (materials, contractors, additional expenses). 
• Set realistic timelines. 

Step 2: Permits and Approvals

• Building or reconstruction permit: required for layout changes or structural works. 
• Façade modification permit: required if you change the exterior design. 

Step 3: Finding Contractors
Hire qualified builders, electricians, plumbers, and designers with experience in Cyprus.

Step 4: Materials Procurement
Use high-quality materials. Buying in bulk or directly from suppliers can reduce costs.

Step 5: Renovation Process
Monitor each stage to ensure compliance with quality standards and deadlines.

Step 6: Completion and Inspection
After work is finished, conduct a final inspection. For major reconstructions, updated cadastral plans or permits may be required.

For Residential Property:

• Building or reconstruction permit (if affecting façade or layout) 
• Renovation/reconstruction project by an architect or engineer 
• Contracts with contractors 
• Title Deed (ownership document) 

For Commercial Property:

• Permit for change of use (e.g., residential to commercial) 
• Reconstruction project approved by local authorities 
• Safety compliance documents (fire safety permits, inspections) 

• VAT: 19% on construction and renovation works (5% for primary residences in some cases). 
• Capital Gains Tax: 20% on profits when selling renovated property.
  
• Stamp Duty: payable when new contracts or documents are issued.

• Plan your budget with a financial buffer. 
• Use quality materials. 
• Work with reputable contractors. 
• Monitor progress regularly. 

• Underestimating the scope of work. 
• Ignoring permits and legal requirements. 
• Overlooking professional advice from architects and designers.

Commercial property requires specific considerations:

• Adaptation to tenant needs (e.g., office infrastructure, retail layouts). 
• Energy efficiency upgrades to reduce costs.
  
• Compliance with safety standards for public spaces.