Eviction of statutory tenants and compensation for goodwill in Cyprus

General Principles

In Cyprus, the eviction process for a statutory tenant can be initiated under certain circumstances. A statutory tenant is someone who is protected by the Rent Control Law (L.23/1983) as amended and enjoys the right to occupy a property at a controlled rent.

Eviction of a statutory tenant in Cyprus can occur in the following cases:

• Non-payment of rent:

If the tenant fails to pay the agreed-upon rent for a specific period, the landlord can initiate eviction proceedings. The landlord must issue a written notice to the tenant, giving them a reasonable timeframe to settle the outstanding rent. If the tenant fails to pay within that period, the landlord can proceed with the eviction process.

• Breach of tenancy agreement:

If the tenant violates the terms and conditions of the tenancy agreement, the landlord can serve a written notice detailing the breach. The tenant is typically given a specific period to rectify the violation or vacate the premises. If the tenant fails to comply, the landlord can proceed with eviction.

• Nuisance or illegal activities:

If the tenant engages in activities that cause a nuisance to neighbors, damages the property, or carries out illegal activities, the landlord can initiate eviction proceedings. In such cases, the landlord must provide evidence of the misconduct, and the tenant may be given an opportunity to defend themselves before the court.

• Demolition or reconstruction of the property

If the landlord of the property wishes to demolish the property and construct a new building or make substantial alterations, which will lead to the development of such property.

Required Steps

The eviction process in Cyprus involves filing a legal action with the Rent Control Court. The court will review the case and issue a judgment based on the evidence and applicable laws. If the court rules in favor of the landlord, an eviction order will be issued, specifying a date by which the tenant must vacate the premises.

It’s important to note that the eviction process can be complex and it’s advisable for both landlords and tenants to seek legal advice to ensure they understand their rights and obligations under the law. The specific procedures and timelines may vary, so it’s recommended to consult with a legal professional familiar with Cypriot tenancy laws for accurate and up-to-date information.

Compensation for goodwill

In Cyprus, commercial leases are typically governed by contract law and the terms agreed upon between the landlord and tenant. The compensation for goodwill is generally a matter of negotiation between the parties involved. If the landlord agrees to provide compensation for goodwill in the lease agreement, then it becomes a legally binding obligation.

However, the Rent Control Law expressly states that in cases of eviction due to demolition or reconstruction, compensation for goodwill to the tenant may be available provided, among others, that (i) goodwill became attached to the business premises in question by reason of the carrying thereon by the tenant of some trade or business; (ii) that the rental value has been increased owing to such business having been carried on by the tenant; (iii) that the landlord shall get the benefit of such increase; and (iv) the tenant shall suffer a loss by giving up possession of such business premises.