There are different options to identify another party’s asset position, which differ according to the type of assets.
Real Estate Assets
Typically, a claimant (plaintiff) can conduct a search at the Land Registry Office only once he/she has secured a court judgment against the other party. However, there is a notable exception to this rule: banking institutions can conduct such searches without first securing a court judgment.
Shares
General searches can be conducted by the general public regarding companies at the Registrar of Companies’ website. However, searches that reveal registered shareholders can be conducted through the Registrar’s website at a (small) fee. Both general and specific searches are conducted online without the need of first securing a court judgment.
It should be noted that searches can only be conducted on a company-by-company basis and cannot be conducted on specific persons/shareholders, and searches do not reveal the ultimate beneficial owners of companies.
Monies Deposited in Banks
Banks will not reveal any amounts deposited with them unless ordered to do so by the court. This is usually done after a court judgment.
The different types of domestic judgments are as follows:
There are various ways to enforce a domestic judgment, the most commonly employed of which are outlined below.
Writ of Movables
This is carried out via a court bailiff, who attempts to collect the judgment debtor’s movable assets.
Registering a Charge (Memo) on Property
This is carried out at the Land Registry Office and essentially constitutes a charge on the debtor’s properties. If the asset is sold by the debtor, the proceeds will first be allocated to satisfy the value of the charge (memo), assuming, of course, there are no previous encumbrances/charges on the property.
Application for an Order to Sell the Property
This is again processed through the Land Registry Office, which can initiate the sale of the property through an auction. This can be pursued when a previously registered encumbrance is registered on the property. In practice, this is very rarely successful.
Winding-Up Petition
Though not strictly an enforcement method, in cases where the debtor is a company, the successful claimant can initiate the winding-up of the company after demanding the judgment amount with the service of a statutory demand. It must be noted that winding-up applications can only be filed if the judgment amount is greater than EUR5,000.
Third-Party Debt Order (Garnishee Order)
This is an order pursued against a third party which owes or is about to transfer a monetary amount to the debtor. This order, if successful, circumvents the debtor entirely and collects the monies from the third party directly.
Moreover, the procedure of the above-mentioned enforcing methods is now governed and provided for by the New Rules of Civil Procedure, specifically by Parts 47–53.
Outlined below are the typical costs involved and the duration it takes to enforce a judgment based on different enforcement measures.
Writ of Movables
This is a speedy and cost-effective enforcement measure. However, it is important to note that the practical execution of these writs often proves to be challenging.
Registering a Charge (Memo) on Property
This is also a speedy and cost-effective measure that can be registered for a small fee as soon as the judgment is issued.
Application to Sell the Property
This can be filed for a small fee as soon as a memo is registered. However, in practice it takes a very long time (if ever) for these applications to be processed and acted upon by the Land Registry Office.
Winding-Up Petition
This is often the most effective measure against companies, especially if the company in question is operational and wishes to remain so but refuses to settle the judgment debt.
The cost depends on whether the winding-up petition will be challenged by the debtor or any other interested party.
Third-Party Debt Order (Garnishee Order)
This is also an effective measure in cases where the successful claimant has knowledge or reasonable suspicion of a third party that owes or is about to transfer a monetary amount to the debtor. This measure is often pursued against banks or tenants of the debtor.
The usual practice is for the judgment creditor to secure an ex parte order preventing the third-party debtor of the judgment debtor to pay the judgment debtor directly and an inter partes application for an order against the third party to effect the payment directly to the judgment creditor. Timing depends on whether the application will be contested by the judgment debtor or third party.
The judgment creditor may apply in court for the financial examination of the judgment debtor, and this procedure may include an order against the judgment debtor to file an affidavit listing all moveable or immovable assets he/she may own.
Real Estate Assets
Typically, a claimant (plaintiff) can only conduct a search at the Land Registry Office only once he/she has secured a court judgment against the other party, with the aim of registering an encumbrance/memo on properties and subsequently an application to sell the property.
Monies Deposited in Banks
Banks will not reveal any amounts deposited with them unless ordered to do so by the court. This is usually done after a court judgment, through the filing of a third-party debt order (garnishee order).
Shares
Searches on companies that aim to establish the company’s shareholders can be conducted prior to the issuance of a final court judgment.
Defendants may seek to challenge the enforcement of domestic judgments in one of the ways outlined below.
In Default of Appearance
The defendant may claim that the proceedings were not properly served on him/her and therefore seek to set aside the judgment. Delay by the defendant in pursuing such an action is a major factor taken into consideration by courts examining such applications to set aside judgments issued by default of appearance.
Judgment by Consent
This may be challenged on the grounds, for example, that the defendant had not authorised their lawyer to accept the judgment. In cases where a consensual judgment was secured, a third party may seek to have the judgment set aside on the basis of an argument of collusion/fraud.
Stay Pending Appeal
Following a hearing of a case on its merits, the unsuccessful defendant may seek to stay the execution of the judgment pending appeal. This typically requires that the defendant demonstrate that they will be in a position to satisfy the judgment if their appeal is unsuccessful. Defendants are usually required to provide bank (or other) guarantees for the amount of the judgment. Such a stay application may either be filed with the District Court, or with the Appellate Court.
There is no type of judgment that cannot be enforced, other than declaratory judgments which by their nature have no enforcement capacity.
There is no register of domestic judgments, but there is a publicly available database that includes most interim and final judgments.
The legal issues relating to the enforcement of foreign judgments vary according to the jurisdiction in which the judgment was originally issued.
EU Judgments
As the Republic of Cyprus is a member of the EU, EU judgments can be recognised and enforced under the provisions of Regulation (EU) No 1215/2012 of the European Parliament and of the Council of 12 December 2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters. It should be noted that recognition is (nearly) automatic, as the successful claimant need only present the EU judgment together with the relevant “certificate” from the court that originally issued the judgment for the judgment to be enlisted in Cyprus.
Russian Federation Judgments
Regarding judgments issued by a court in the Russian Federation, the process is governed by the Treaty between the Republic of Cyprus and the Union of Soviet Socialist Republics on Legal Assistance in Civil and Criminal Matters.
Bilateral Treaties
The Republic of Cyprus has entered, and is in the process of entering into, bilateral treaties with other states regarding the recognition and enforcement of judgments specifically from these states. Where a judgment is issued from a state with which the Republic has a bilateral treaty, the provisions of this treaty will apply.
Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil and Commercial Matters
On 1 September 2023, the Hague Convention of 2 July 2019 on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters entered into force.
It does not prevent or limit the recognition and enforcement of judgments under national law, bilateral, regional or other international instruments (Articles 15 and 23, with the exception of Article 6). This basically means that it essentially complements the existing instruments for the recognition of judgments.
Common Law
A foreign judgment can alternatively be recognised and enforced at common law. The process involves filing an action based on the foreign judgment.
Other than procedural aspects, the foreign judgment debtor may also invoke the argument of Cypriot public policy.
The procedure and legal requirements that need to be met for the purpose of recognition and enforcement of a foreign judgment vary to a significant extent depending on the country of origin of the foreign judgment, as different legal frameworks apply in each case, as described in 3.1 Legal Issues Concerning Enforcement of Foreign Judgments.
In relation to EU judgments, the relevant EU Regulation 1215/2012 relates to judgments as “Any judgment given by a court or tribunal of an EU member state, whatever the judgment may be called, including a decree, order, decision or writ of execution, as well as the determination of costs or expenses by an officer of the court.”
The Regulation does not seem to extend to revenue, customs or administrative matters or to the liability of the state for acts and omissions in the exercise of state authority (acta iure imperii). In addition, the Regulation does not apply to:
With regard to foreign judgments issued by courts of countries with which Cyprus has entered into bilateral or multinational treaties, the foreign judgments that may be recognised in Cyprus will depend on the provisions of the treaties and usually concern civil or commercial matters (but many also include judgments on matrimonial disputes).
In terms of common law enforcement of foreign judgments, the following requirements must be met for a foreign judgment to be registered and enforced in Cyprus under common law rules:
This, again, is subject to public policy considerations and adherence to due process, which are explored in other sections.
A foreign judgment will first need to be registered before it can be enforced.
The recognition of foreign (non-EU) judgments from jurisdictions with which the Republic of Cyprus has a bilateral treaty for mutual recognition of judgments is provided for by Law 122(I)/2000, which states that a successful plaintiff seeking to register a foreign judgment has to file an application by summons. The defendant/respondent can proceed with filing an objection, and the court will proceed with issuing its judgment regarding the registration of the judgment.
There is specific legislation regarding commonwealth jurisdictions (CAP 10), which allows the successful plaintiff, within six years of receiving a judgment from a commonwealth jurisdiction, to seek to register this judgment in the Republic of Cyprus through a court application. The defendant has the option to file an application in court to set aside the registration of the judgment.
Once a foreign judgment from any jurisdiction is recognised or registered, the successful claimant can then initiate enforcement measures in the same manner as they would for a domestic judgment.
The time and costs involved in enforcing foreign judgments vary according to the jurisdiction in which the judgment was originally issued and whether the procedure will be contested by the judgment debtor (and in some limited cases, by intervening third parties).
EU Judgments
Since these are nearly automatically recognised, the process to “enlist” the judgment in the Republic is very speedy, with minimal costs involved, barring any fees agreed upon with a law firm.
For the enforcement of a foreign judgment at common law, the court fees will depend on the sum awarded under the foreign judgment or the value of the subject matter of the foreign judgment. These figures are assessed as per the table of fees set out in the Cypriot Civil Procedure Rules. For example, for an amount of EUR2 million or higher, the court stamps/fees are about EUR1,000.
Foreign applicants for recognition and enforcement of foreign judgments may be requested to deposit security for costs if they are not residents of:
For EU judgments covered under the Brussels I Regulation, a declaration of enforceability is obtained ex parte within approximately three to 30 days of the date of filing of the application for recognition and enforcement.
For EU judgments covered by the Recast Brussels Regulation, the European Enforcement Order Regulation and the European Order of Payment Regulation, there is no need to obtain a declaration of enforceability.
For recognition and enforcement under statutes of non-European judgments, the timeframe for obtaining a declaration of enforceability may range from approximately eight to 12 months from the date of filing.
For the enforcement of foreign judgments at common law, the timeframe for adjudication may range from approximately two to five years from the date of filing.
Russian Federation Judgments
The matter is regulated by the Treaty between the Republic of Cyprus and the Union of Soviet Socialist Republics on Legal Assistance in Civil and Criminal Matters (N172/86). The process depends upon the recognition of the judgment via the aforementioned Treaty. According to Article 23, even a foreign judgment for costs can be recognised and enforced automatically. Timeframes will vary depending on whether the judgment creditor files the application directly (if the conditions under the treaty are met) or whether the designated authority files the application.
The recognition of a foreign judgment is the initial step in enforcing it. There are a number of grounds on which a party can resist the recognition of a foreign judgment, including:
Cypriot arbitration laws are based on the 1985 UNCITRAL Model Law on International Commercial Arbitration. The grounds for resisting the enforcement of an arbitral award and/or setting it aside mirror the grounds of Article 5 of the New York Convention.
Similar to the registration/recognition of foreign judgments, the recognition of foreign (non-EU) arbitral awards from jurisdictions with which the Republic of Cyprus has a bilateral treaty for mutual recognition of arbitral awards is provided for through Law 122(I)/2000, which states that the successful party seeking to register the arbitral awards has to file an application by summons. The defendant/respondent can proceed with filing an objection, and the court will proceed with issuing its judgment regarding the registration of the judgment.
Grounds for non-enforceable arbitral awards are provided by Section 36 of Law 101/1987 (International Arbitration Act). According to this law, an arbitral award will be deemed non-enforceable if a court determines that:
As per Section 21 of the International Arbitration Law, an arbitral award can be enforced, with the permission of the court, in the same way as a judicial decision/judicial order. Generally speaking, courts in Cyprus take a non-intervention, pro-enforcement approach. Once an arbitral award has been awarded, one can expect the execution to take one of the following forms (in relation to monetary claims):
The costs involved typically mirror the costs of enforcing a judicial award and/or decision. Enforcement of both domestic and foreign arbitral awards requires the payment of legal fees, stamp duty and service expenses and the amounts will depend on whether the procedure will be challenged/defended. In cases where the enforcement of the award is permitted, there are also costs in enforcing against the defendant’s assets.
Cyprus Courts can refuse the recognition and registration of an international arbitral award only on the basis of the grounds stipulated in Article V of the New York Convention, as transposed in Law 84/1979, which are the following:
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The legal and regulatory provisions governing the recognition and enforcement of foreign judgments in Cyprus are mainly a combination of various instruments such as bilateral treaties, domestic legislation, and EU regulations.
In addition, the Foreign Judgments (Reciprocal Enforcement) Law (Cap.10), modelled after the corresponding English legislation (the Foreign Judgments (Reciprocal Enforcement) Act 1933), applies to judgments obtained in the courts of the United Kingdom and its dominions. In situations where no bilateral treaty exists between Cyprus and the country in which a foreign judgment originated, the Cypriot courts, by virtue of Section 29(1)(c) of the Courts of Justice Law (14/60), apply common law principles related to the recognition and enforcement of these foreign judgments.
Bilateral and multilateral instruments
Cyprus has concluded bilateral agreements with various non-EU states governing the mutual recognition and enforcement of judgments. Examples of such agreements include:
EU Regulation 1215/2012
The process of recognising and enforcing judgments between EU member states has been streamlined since the implementation of Regulation (EU) No 1215/2012 of the European Parliament and of the Council of 12 December 2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (the “EU Regulation 1215/2012”). This regulation facilitates the recognition and enforcement of judgments related to civil and commercial matters across the European Union, eliminating the need for any additional declaration of enforceability (exequatur). As a result, a judgment passed in one EU member state is almost automatically recognised in all other EU member states, removing significant administrative hurdles and leading to smoother cross-border administration of justice.
Furthermore, the European Payment Order (EPO), established by EU Regulation 1896/2006, facilitates the collection of uncontested monetary claims in civil and commercial matters across EU member states, with the exception of Denmark. An EPO issued by a court in one member state is automatically recognised and directly enforceable in any other member state without the need for a declaration of enforceability. The EPO procedure is different from the European Small Claims Procedure, which simplifies and speeds up litigation concerning small claims in civil and commercial matters.
Conditions for Enforcement
EU member states
Judgments issued by the courts of EU member states are recognised and enforced pursuant to the provisions of EU Regulation 1215/2012. Notably, the term “judgment” includes provisional and protective measures but does not include those ordered without the defendant being summoned unless the judgment is served on the defendant prior to enforcement.
The EU Regulation 1215/2012 does not apply to:
United Kingdom
Post-Brexit, judgments issued by the courts of the United Kingdom are recognised and enforced pursuant to the Foreign Judgments (Reciprocal Enforcement) Law (CAP.10). The term “judgment” encompasses a monetary judgment or order given by a court in any civil or criminal proceedings. The judgment must be final and conclusive and amenable to execution in the country of origin. A judgment will be deemed final and conclusive notwithstanding that an appeal may be pending.
As a member of the EU, Cyprus is also bound by the Convention of 2 July 2019 on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters of 2019 (the “Hague Convention”) (to which the European Union acceded in July 2022).
The Hague Convention, which entered into force on 1 September 2023, aims to reduce costs, promote access to justice, facilitate trade, and manage transaction and litigation risks. It applies to civil and commercial judgments, excluding certain matters like family law, insolvency, privacy, intellectual property, and specific antitrust issues. Very recently, the UK has also ratified the Hague Convention (effective 1 July 2025) which will apply to civil and commercial judgments from the Courts of England and Wales. This development represents a significant step forward in international legal co-operation, providing clarity and predictability for cross-border enforcement of judgments.
Russia, Georgia, and Belarus
Judgments issued by courts of Russia, Georgia, and Belarus are recognised and enforced pursuant to the Treaty between the Republic of Cyprus and the Union of Soviet Socialist Republics on Legal Assistance in Civil and Criminal Matters (L172/86). According to Article 23 of the treaty, judgments amenable to enforcement include:
Some indicative requirements for the recognition and enforcement of a judgment issued in these states include (i) the judgment being final and enforceable under the law of the contracting state; (ii) proper notification to parties; (iii) jurisdiction of the issuing court; and (iv) absence of prior final judgments on the same matter.
Ukraine
Judgments issued by the courts of Ukraine are recognised and enforced pursuant to the Agreement between the Republic of Cyprus and Ukraine on Legal Assistance in Civil Matters (L8(III)/2005). The term judgment includes judgments rendered in civil matters (including family matters and amicable settlements approved by court) and judgments in criminal matters concerning damages.
Such judgments will be recognised and enforced provided they meet conditions such as (i) finality and enforceability; (ii) proper notification; (iii) absence of conflicting final judgments; (iv) compliance with public order; and (v) jurisdiction of the issuing court.
Procedure for Recognition and Enforcement
The formal process for recognition and enforcement depends on the statute that applies in the individual case. In other words, the process varies according to which instrument or statute is applicable.
Injunctive Relief
In the course of proceedings for the recognition and enforcement of foreign judgments, whether under the statutory regime or at common law, the judgment creditor has the option of seeking the following interim relief on an urgent basis (subject to fulfilling the relevant conditions set out in Section 32 of the Courts of Justice Law (14/60) and Section 9 of the Civil Procedure Law, Cap 6):
Defences to Recognition and Enforcement
The grounds on which the recognition and enforcement of a foreign judgment can be challenged are generally limited.
EU Regulation 1215/2012
The recognition and enforcement of a judgment issued by a court of an EU member state may be challenged on any of the following grounds (this list is not exhaustive):
In addition, the grounds for refusal or suspension of enforcement under the law of the member state addressed will apply insofar as they are not incompatible with the grounds referred to in Article 45 of EU Regulation 1215/2012.
UK
As regards judgments issued by UK courts, the Foreign Judgments (Reciprocal Enforcement) Law provides that the only discretionary factor which may lead to the Cypriot court to decline to recognise a judgment is if:
Moreover, the registration will be set aside if:
Domestic Judgments
A domestic judgment is generally enforceable as soon as it is issued, unless specified otherwise. The filing of an appeal against it does not in itself suspend or stay enforcement unless an application for stay of execution is filed by the judgment debtor to that effect.
Procedure for enforcement
The enforcement of a judgment is usually carried out by the lawyer who handled the case before the court, who proceeds by one of the methods of enforcement mentioned below. In certain methods, an application to court is required. Enforcement is carried out mainly through the judicial bailiffs, who are permanent staff of the courts.
The debtor, as well as any third party, is obliged to comply with the decision ordering the enforcement measure. If the debtor refuses or fails to perform the actions ordered to be performed by the order imposing the enforcement measures, proceedings may be brought against him/her for imprisonment for contempt of court. For example, a bank which is served with a writ of attachment in favour of a third party shall be obliged to freeze the relevant account unless it has reason to contest it. In this case, it must appear before the court that issued it and show cause why this should not be the case.
Methods of enforcement
A domestic judgment can be enforced in Cyprus through:
Arbitral Awards
The recognition and enforcement of arbitral awards in Cyprus is governed by a framework of two important pieces of legislation.
As a signatory to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention”), Cyprus has adopted Ratifying Law on the Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1979 (Law 84/1979), which has effectively transposed the provisions of the New York Convention into domestic legislation.
The second piece of legislation is the International Commercial Arbitration Law of 1987 (Law 101/1987), which is modelled after the UNCITRAL Model Law. Pursuant to Law 101/1987, international commercial arbitral awards can be recognised and registered regardless of the country that issued them.
Procedure for enforcement of arbitral awards
The recognition and enforcement of foreign (non-EU) arbitral awards from jurisdictions with which Cyprus has a bilateral treaty for mutual recognition are governed by Law 121(I)/2000. The party seeking to register the arbitral award must file an application by summons. The respondent can file an objection, and the court will then issue its judgment regarding the registration of the award. Section 36 of Law 101/1987 outlines the grounds on which an arbitral award may be deemed non-enforceable. These include:
According to Section 21 of Law 101/1987, an arbitral award can be enforced with the court’s permission, in the same manner as a judicial decision or order. Generally, Cypriot courts adopt a pro-enforcement stance. The execution of an arbitral award for monetary claims may involve:
Refusal of recognition
A Cyprus court can refuse the recognition and registration of an international arbitral award only on the basis of the grounds stipulated in Article V of the New York Convention, as transposed in Law 84/1979, which are the following:
Economou & Co LLC’s Commentary
Cyprus plays a crucial role in the international legal landscape, particularly in the enforcement of foreign judgments and arbitral awards. At Economou & Co LLC, we understand the significance of this jurisdiction’s legal framework and aim to provide clarity on its various aspects.
Cypriot law incorporates multiple instruments to facilitate the recognition and enforcement of foreign judgments. The Foreign Judgments (Reciprocal Enforcement) Law (Cap.10), modelled after the English legislation, allows for the enforcement of judgments from the UK and its dominions. Additionally, in the absence of a bilateral treaty, Cypriot courts apply common law principles as stipulated by Section 29(1)(c) of the Courts of Justice Law (14/60).
The numerous bilateral agreements Cyprus has with non-EU states, such as Syria, Russia, Egypt, China, Libya, Ukraine, and Qatar, demonstrate a strong commitment to international co-operation in legal matters. These treaties ensure that judgments can be recognised and enforced across borders, providing a reliable legal environment for international parties.
For EU member states, Regulation (EU) No 1215/2012 has streamlined the process, enabling the almost automatic recognition and enforcement of judgments. This regulation eliminates the need for additional declarations of enforceability, making cross-border legal proceedings more efficient. Similarly, the European Payment Order (EPO) established by EU Regulation 1896/2006, facilitates the collection of uncontested claims within the EU.
In the realm of arbitration, Cyprus adheres to the principles of the New York Convention, as reflected in its domestic legislation. The International Commercial Arbitration Law of 1987 (Law 101/1987) ensures that international arbitral awards are recognised and enforced, provided they meet specific legal criteria.
The recent implementation of the Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters further strengthens Cyprus’s position in the international legal arena. This convention, effective from September 2023, is expected to enhance legal predictability and reduce litigation costs, promoting smoother international transactions.
In conclusion, the enforcement of foreign judgments and arbitral awards in Cyprus is underpinned by a robust legal framework that integrates national laws, bilateral treaties, and EU regulations. At Economou & Co LLC, we are dedicated to guiding our clients through this complex landscape, ensuring that their legal matters are handled with the utmost diligence and expertise.
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