The legal system of Cyprus is primarily considered to be a common law system, even though some areas of law (eg, its administrative law) are based on the principles and tradition of civil law due to Cyprus being a British colony until its independence in 1960. Following Cyprus’ accession to the EU in 2004, the Cyprus Constitution was amended, granting supremacy to EU law over the Constitution and domestic legislation.

By virtue of a substantial judicial reform brought about by the passing of a number of new legislations in August 2022, Cyprus has a three-tier court system as of 1 July 2023, made up by the courts of first instance, namely the district courts and the courts of specialised jurisdiction, a new Appellate Court and a Supreme Court and a Supreme Constitutional Court.

First Tier

The courts of first instance are divided by territorial and subject matter jurisdiction, as follows.

Territorial jurisdiction

There are both district courts and courts of specialised jurisdiction in every administrative district in Cyprus (Nicosia, Limassol, Paphos, Larnaca, Famagusta and Kyrenia).

Subject matter jurisdiction

The district courts of Cyprus have jurisdiction to hear, and try at first instance, all civil actions and criminal proceedings, as well as all other cases which do not fall within the jurisdiction of the specialised courts.

The main courts of specialised jurisdiction are the following:

• the Assize Courts (criminal courts), which try serious criminal offences, punishable by a sentence of more than five years or a fine in excess of EUR85,000 (or both);
• the Industrial Disputes Courts (employment dispute courts);
• the Family Courts, which have jurisdiction on all family disputes;
• the Rent Control Courts, which deal with the repossession of any controlled properties and the determination of rent-related disputes;
• the Military Courts, which have jurisdiction to try offences committed by military personnel;
• the International Protection Administrative Court, which deals with appeals by asylum seekers;
• the Administrative Court (which only sits in Nicosia), which has the exclusive jurisdiction to hear recourses filed against decisions, acts or omissions in the exercise of executive or administrative authority;
• the Commercial Court, which is expected to be fully operational in 2024 and which will have the exclusive jurisdiction to hear cases pertaining to “commercial disputes” of a value over EUR2 million;
• the Admiralty Court, which is also expected to be fully operational in 2024.

Second Tier

A new Appellate Court has been formally constituted and began to operate in July 2023, with jurisdiction to hear and determine all appeals from decisions of first-tier courts.

Newly Established Supreme Court and Supreme Constitutional Court

A new Supreme Court and a new Supreme Constitutional Court have been formally constituted and began operating in July 2023. These courts will act as first-tier, second-tier or third-tier courts, as the case may be.

Court Proceedings

Court proceedings are, as a general rule, open to the public and not conducted in private. Nonetheless, in certain circumstances, courts may order that a hearing takes place in private, that the parties’ anonymity be retained during and after the proceedings are concluded or that reporting restrictions are imposed for the protection of witnesses, minors or vulnerable persons, as well as for national security purposes.

Filings/Court Case File

The content of a court case file, on the other hand, is available only to the parties to the proceedings and their lawyers and no third party may obtain access thereto, unless a specific leave has been granted by the court to this effect, following the filing of an application by such interested third party.

It is noted that the restricted access to the court file and its content (which includes anything filed in the proceedings, such as pleadings, applications, affidavits and exhibits) is the default position under Cypriot law, so it is not necessary for a party to pending proceedings to apply for an order restricting such access.

Only qualified advocates, who are duly registered members of the Cyprus Bar Association, as well as pupil advocates (subject to certain conditions) may act as legal representatives and appear before the courts of the Republic of Cyprus.

European Lawyers

Qualified lawyers in other EU member states may appear in court proceedings provided they: (i) are registered as EU lawyers in Cyprus; and (ii) appear jointly with a Cyprus-registered lawyer in the course of such court proceedings.

EU lawyers with three or more years of practice in Cyprus may be registered as full members of the Cyprus Bar Association and provide legal services on a permanent basis.

Non-European Lawyers

Lawyers from a non-EU jurisdiction can be granted rights of audience before the courts of Cyprus on a temporary basis, provided they obtain a special leave to this effect by the Bar Council and as long as they are accompanied by a duly registered local advocate.

Third-Party Funding

Third-party funding is available in Cyprus, but in practice is very rarely used.

Legal Aid

Funding may also be provided by way of legal aid, in specific cases which meet the conditions imposed by the applicable national law (ie, in cases where a party cannot bear the costs of the proceedings without a substantial impact on their basic needs and obligations).

In the context of civil proceedings, legal aid is granted only for a limited number of cases, such as certain human right violations, family and matrimonial law disputes e.a.

Third-party funding is available for all types of civil lawsuits.

Third-party funding is available to both plaintiffs and defendants.

There are no applicable minimum or maximum amounts in respect of third-party funding and funders are, therefore, free to elect the amount of any such funding at will.

There are no restrictions on the type of litigation-related costs which a third-party may fund, and all the legal fees and costs of a party may be therefore covered by a third-party funder.

Contingency fees are not allowed in Cyprus.

There are no applicable time limits when it comes to a party obtaining third-party funding.

Following the introduction of new Civil Procedure Rules (CPRs) in Cyprus as of 1 September 2023, formal pre-action steps are now required to be taken before the initiation of a civil lawsuit, in line with applicable pre-action protocols. There are currently three pre-action protocols: (i) Protocol I (Type I), which applies to claims for a liquidated monetary amount; (ii) Protocol II (Type II), which applies to claims in relation to road traffic accidents, involving personal damage/damage to property; and (iii) Protocol III (Type III), which sets out the procedure that needs to be followed by parties before the commencement of judicial proceedings in cases which are not covered by a specific pre-action protocol.

In general terms, the pre-action protocols set out the steps that need to be followed by the parties prior to the initiation of a lawsuit. In line with such protocols, the prospective claimant needs to deliver to the prospective defendant a demand letter (as per the applicable form) containing a synopsis of the facts forming the basis of their claim, all relevant documents upon which they rely and particulars of the debt/damages sought. The prospective defendant is required to respond to the demand letter within 14 or 28 calendar days (as the case may be) from the date of receipt thereof and inform the prospective claimant whether the claim is accepted or not. In the event that the claim is not accepted, the prospective defendant’s response should contain details of the reasons why the claim is rejected and copies of the documents which the defendant wishes to rely upon.

Due compliance with a pre-action protocol is obligatory and a party which fails to comply with its provisions (such as failing to provide sufficient information with the pre-action letter, failing to respond to a pre-action letter in a timely manner, failing to disclose documents, etc) may be penalised accordingly by the court (eg, in costs).

The limitation periods applicable to civil (including commercial) claims are currently governed by the Limitation of Actionable Rights Law of 2012, Law 66 (I) of 2012.

The general rule is that the limitation period for a new claim which has accrued after 1 January 2016 commences on the actual day of completion of the cause of action giving rise to the claim.

For actionable rights which existed between 1 July 2012 and 1 January 2016, the limitation period is deemed to commence from 1 January 2016, and not from the actual date when the cause of action giving rise to the claim was completed.

Limitation Periods

There are different limitation periods depending on the nature of the actionable right, while there is also a general limitation period of ten years for actionable rights not expressly provided for in the applicable legislation.

The Law No 66(I)/2012 also introduces certain mechanisms for the suspension of the applicable limitation periods, as well as specific criteria for their computation.

Contractual claims

There is a general limitation period of six years for actions based on contractual claims, starting from the date on which the cause of action accrues (ie, the date of the breach).

Claims pertaining to an agreed or reasonable remuneration of a lawyer, doctor, dentist, architect, civil engineer, contractor or other independent professional carry a three-year limitation period.

For loans secured by a mortgage, charge or pledge, the limitation period for the commencement of litigation proceedings is 12 years.

Civil wrongs

The general limitation period for civil wrongs is six years.

The limitation period for negligence, nuisance or breach of statutory duty claims is normally three years, but this period may be extended in certain cases – for example, where the tort or its consequences were fraudulently concealed.

Claims for defamation or malicious falsehood have a one-year limitation period.

Succession claims

An action challenging the validity of a deceased’s will or relating to the deceased’s estate can only be brought within eight years from the date of that person’s death (unless the claimant was away from Cyprus or was not aware of the death of such person, which they could have become aware of with reasonable diligence).

The issue of jurisdiction in the context of civil claims is governed by the applicable Regulation (EU) No 1215/2012, as well as by the relevant provisions of the national Courts of Justice Law, Law No 14/1960.

Under both schemes, jurisdiction is primarily established by the domicile test – ie, it is determined in accordance with the defendant’s domicile.

There are some applicable “subject matter” exceptions, however, where jurisdiction is established pursuant to the place where the cause of action has arisen (ie, the place where the tort or breach of contract took place, where the immovable property forming the subject matter of the dispute is located, etc).

Once territorial jurisdiction is established, the relevant proceedings ought to be initiated at the appropriate district court.

Initiation of Proceedings

Lawsuits filed after 1 September 2023 are commenced through the filing of one of two claim forms (Part 7 or 8).

The claim form under Part 8 of the new CPRs is used in the "alternative procedure for claims”, namely cases:

• where judgment is sought to be entered in relation to (i) a matter where no substantive dispute as to the facts is likely to exist; or (ii) the interpretation of primary or secondary legislation, contracts, wills, documents, claims of trustees, claims on behalf of or against minors or incapacitated persons; and
• involving any claim or application in relation to which a law or regulation requires that it be pursued by way of an originating summons, a petition or otherwise.

A claim form under Part 7 of the new CPRs is used in all other cases.

Amendment of Pleadings

Claims filed between 1 January 2016 – 31 August 2023

Before such a claim is served on the defendant(s), a claimant is able to amend their pleadings without the leave of the court, while after the service of the claim and before the first summons for directions has been issued, one (more) amendment of pleadings can take place without the leave of the court. After the issuance of the summons for directions, no amendment to a pleading is possible without the court’s leave.

Claims filed after 1 September 2023

Any party may amend a pleading at any time before it has been served on any other party.

If a pleading has been served, a party may amend it only (a) with the express written consent of all other parties or (b) with the court’s leave.

If a pleading has been served, a party which wishes to amend it by adding, removing or substituting a party to the action needs to file an application under Rule 20.4 of the new CPRs.

Proper Service

A defendant must be served with an official copy of the claim form (Part 7 or Part 8) by the plaintiff within 12 months from the date of issuance of the claim form (unless it has been renewed following an application to this effect).

Service of the claim form must be normally effected through a private process server, in person if the defendant is a natural person (or on any member of their family over 16 years of age or any responsible officer at their place of work), or at the registered office address of the company or on one of the company’s officers if the defendant is a legal entity.

Proof of service is achieved through the filing of an affidavit of service supported by a duplicate of the served claim form.

Substituted Service

Whenever the court is satisfied that, due to any reason, it is not possible to effect normal service in a timely manner, it may grant leave for substituted service in any way deemed just and proper in the circumstances, including through public advertisement or by any electronic means.

Service Outside of the Jurisdiction

For all claims commenced after 1 September 2023, no leave of the court to serve on a defendant outside of the jurisdiction is required in cases where the Regulation (EU) 2020/1784 and 1215/2012 are applicable, ie, against persons domiciled in another EU member state.

In all other cases where a defendant resides outside the jurisdiction, the plaintiff must obtain the court’s prior leave to serve the claim form thereon. Pursuant to Rule 6.8 of the new CPRs, service out of jurisdiction may be permitted by the court where, inter alia:

• the court has jurisdiction in respect of the claim pursued, under the applicable law;
• a claim is made against a person who is domiciled or habitually resident within the jurisdiction;
• a claim is made for an order requiring the defendant to commit or refrain from committing an act within the jurisdiction;
• a claim is made against a person ("the defendant") on whom the claim form has been or will be served, and -
1. there is a genuine issue between the claimant and the defendant which the court deems proper to be adjudicated; and
2. the claimant wishes to serve the claim form on another person who is a necessary or proper party to that claim;
• a claim is made for interim relief which the court has jurisdiction to grant under the applicable law;
• a claim is raised in respect of a breach of contract committed within the jurisdiction.
• a claim is made for a tortious offence where:
1. the damage has occurred or will occur within the jurisdiction; or
2. the damage which has occurred or will occur arises out of an act committed or likely to be committed within the jurisdiction;
• a claim is made for the registration and/or enforcement of a judgment or arbitral award;
• the subject matter of the claim relates wholly or mainly to property within the jurisdiction;
• a claim is made in respect of a trust created by operation of the law or in writing or orally and evidenced in writing and governed by the laws of Cyprus;
• the claim is a probate claim or there is a petition to correct an error or omission in a will.

Judgment in Default of Appearance

Failure by a defendant to file a memorandum of appearance to a pending lawsuit within the prescribed timeframe for the filing thereof - ie, within 14 days from the date of service of the claim form or statement of claim thereupon (whenever the statement of claim is filed after, ie, not together with the claim form) entitles the plaintiff to apply before the court for the issuance of a judgment in default of appearance.

Judgment in Default of Defence

A defendant must normally deliver their defence to the claim (or their defence and counterclaim) within 28 days from the filing of a memorandum of appearance. The deadline for filing a defence may be extended up to 42 days, with the plaintiff’s consent. Failure by the defendant to file their defence within the applicable deadline entitles the plaintiff to seek the issuance of a judgment in default of defence, upon proof of their claim.

Where many persons have the same interest in one cause or matter, it is possible for one or more of such persons to become authorised by the court to sue or defend in such cause or matter on behalf of or for the benefit of all persons so interested. Where any such order is made, the persons represented shall be bound by the final judgment of the court as if they were actual parties to the proceedings.

There is no formally prescribed limit on the number of persons which may be added as plaintiffs or defendants in an action.

There is no formal requirement for a lawyer to provide their client with a cost estimate prior to the commencement of litigation proceedings, although as a matter of standard practice, such cost estimates are almost always provided to prospective parties in court proceedings.

It is possible to make interlocutory applications/motions at any point in time, including prior to the filing of a claim (only if the matter is urgent or other special circumstances exist) and after the issuance of a judgment.

Cypriot courts enjoy a very wide discretion to hear interim/interlocutory applications and grant interim remedies and relief.

It is possible for a party to apply for the issuance of an early/summary judgment on some or all of the issues in dispute.

Summary Judgment

A court may grant summary judgment against a plaintiff or a defendant on the whole claim or on a particular issue if:

• it finds that:
1. the plaintiff has no real prospect of success on the claim or issue; or
2. the defendant has no realistic prospect of successfully defending the claim or issue; and
3. there is no other compelling reason why the case or matter should be decided at trial.

Judgment on the Basis of Express Admissions

Where a defendant admits to the claim or a part thereof, the plaintiff may apply for a judgment to be entered in their favour on the basis of the stated admission.

Striking Out of the Claim or a Pleading

It is also possible for a party to apply for the striking-out of a part or the whole of the claim and of a part or the whole of a pleading before trial.

The dispositive motions that are commonly made before the trial of a civil action include applications for the dismissal of the action for want of prosecution, the issuance of a judgment in default, summary judgment or judgment on the basis of admissions, and for the striking out of the claim or a pleading.

Interested persons not named as parties to pending proceedings may apply to join the same as parties, on the proviso that there exists a cause of action by or against them and the court is satisfied that such a joinder will facilitate the adjudication of all issues in dispute/litigious matters.

A defendant, or the plaintiff in the case of a counterclaim, may apply for the provision of security for costs by the other party for the purposes of ensuring that they will be able to recover the litigation costs from the other party in case they manage to successfully defend the action or counterclaim.

It should be noted that where the court orders security for costs to be given, it may stay the proceedings in the action until such security is given by the party ordered to do so. In the event of the security not being given within the time appointed, the court may proceed with dismissing the pending action/counterclaim.

The general rule under Cypriot law is that costs are awarded in favour of the successful party to an application. However, the matter of costs is one which ultimately rests at the court’s discretion.

The relevant timeframe for the determination of an application/motion by the court will depend on whether the application motion is filed ex parte (ie, without notice) or by summons (ie, with notice) to the other side, as well as on the procedural timetable to be agreed between the parties and the court.

Pursuant to the provisions of Part 31 of the new CPRs currently in force in the Republic of Cyprus since 1 September 2023, all parties must effect “general disclosure” not less than 14 days before the case management hearing, of all documents which are or were in their possession, custody or control, and which they intend to rely to rely upon.

Such disclosure is effected through the filing of a witness statement setting out the list of documents at the party’s disposal which are disclosable and those which are not disclosable for specific reasons. For each document that is disclosed, the witness statement must expressly state the date, title or description, the author, sender, and recipient of the document.

It should be noted that the duty for full disclosure is a continuing one and a party must make a supplementary “general discovery” of any new relevant documents that come into their possession after the initial disclosure at any time, but at least six months before the scheduled date of hearing of the claim, unless the court orders otherwise. A party may not give as evidence any document which they have failed to disclose and produce, unless the court is satisfied that there were special circumstances which justified such failure.

Further, any party may file and serve on the other parties a request for “special disclosure” within the time to be specified by the court, following the approval of such request.

A party has the right, within the timeframe ordered by the court, to apply for a “special disclosure order” against a person who is not a party to the proceedings. Such an application must be supported by testimony including, among others, a description of each requested document that is sufficient to identify it, a statement indicating how the document is relevant to the issues and material to the outcome of the proceedings, and the reasons why the requesting party believes that this is in the possession, custody, control or authority of the requested party. The court retains the discretion to order such special disclosure by a third party if satisfied that this is justified in the circumstances.

It should be noted that it is also possible to seek the issuance of a “Norwich Pharmacal”-type disclosure order against third persons.

Discovery in This Jurisdiction

Parties must normally disclose all documents which are at their disposal, custody or under their control and relate to the litigious issues and which they intend to rely upon at trial.

A party may refuse to make available for inspection any document which it deems to be non-disclosable due to privilege, confidentiality or suchlike.

Please refer to 5.3 Discovery in This Jurisdiction.

The concept of legal privilege is duly recognised in Cyprus and protected by virtue of, inter alia, the Advocate’s Code of Conduct, which clarifies that professional secrecy is recognised as the fundamental and primary right and obligation of advocates and must be protected by the court and any state or public authority. Legal professional privilege applies to the dealings and all communications of advocates with their clients in the context of anticipated or pending legal proceedings.

Advocates are under an obligation to respect the secrecy of all information or evidence which has come to their knowledge in the course of their professional activity and cannot divulge the same without their client’s express consent, save in specific cases where an accusation has been made against them by their client or if the advocate faces criminal or disciplinary prosecution (Rule 13, Advocates’ Code of Conduct).

In the absence of any judicial precedent on the matter, it is not entirely clear whether the Cypriot courts would apply legal professional privilege to in-house lawyers as well, since they are deemed to act primarily as business advisers rather than lawyers of their employees (in line with the restrictive view laid down in Akzo Nobel v European Commission (C-550/07).

A party is entitled not to disclose privileged documents, documents which are irrelevant to the litigious matters and documents which are self-incriminating.

The courts of Cyprus enjoy a very wide discretion when it comes to the issuance of injunctive relief and may issue interim injunctions in support of litigation and arbitration proceedings alike, both domestic and international.

Pursuant to the provisions of Article 32 of "Law No 44/1960", the Cypriot courts may issue interim injunctions (either on an ex parte or an inter partes basis) whenever they are satisfied of:

• the existence of a serious issue to be tried;
• the likelihood that the applicant is entitled to relief and will succeed in their claim; and
• the fact that it will be difficult or impossible to do complete justice at a later stage if the injunction is not granted.

In addition, the court will examine and decide on whether it is just and convenient to issue the requested order(s) on the basis of the facts presented before it (the “balance of convenience” test).

The types of available injunctive remedies are the following:

• freezing injunctions (“Mareva” injunctions) for the protection of asset disposal or dissipation, located both in Cyprus and abroad (worldwide injunctions);
• “Chabra” injunctions against third parties holding assets belonging to the respondent(s);
• ancillary disclosure injunctions, in support of freezing injunctions, for the purposes of locating assets or policing the due compliance with the freezing order;
• disclosure injunctions, such as “Norwich Pharmacal” or “Bankers Trust” injunctions, for the disclosure of documents or information;
• search and seizure orders (ie, “Anton Piller” orders) for the preservation of evidence or property under an imminent threat of destruction;
• anti-suit injunctions, to restrain a party from commencing proceedings;
• gagging orders, to restrict information from being made public or passed on to third parties;
• quia timet injunctions, to prevent the occurrence of an actionable wrong;
• appointment of a receiver/manager, to receive/manage specific assets and deal with them in a specific way;
• injunctions in aid of foreign judicial proceedings in another EU member state, pursuant to Article 35 of the Regulation (EU) No 1215/2012; and
• injunctions in aid of international, envisaged or pending, arbitration proceedings.

Injunctive relief can be obtained on an ex parte basis - ie, without notice to the respondent. As a matter of standard practice, an ex parte application for the issuance of injunctive relief is dealt with within one to three working days from the date of its filing, if it can be shown to the court that the circumstances surrounding the issuance of the requested injunction(s) are extremely urgent. Together with the filing of the ex parte application or at least two days before the scheduled “hearing of procedural directions”, the applicant must produce written submissions on the merits of the application.

It should be noted that there are no arrangements for “out-of-hours” judges in civil proceedings, but it is possible to obtain injunctive relief during the summer, Christmas and Easter holidays, when the civil courts are normally closed.

Pursuant to Section 9 of the Civil Procedure Law (Cap 6), injunctive relief can be obtained on an ex parte basis, as long as the applicant demonstrates to the court the existence of real and pressing urgency or an imminent danger against which the court should protect the applicant without notice to the other side. The existence of urgency is a jurisdictional requirement which needs to be satisfied in order for the court to issue an injunction ex parte.

If a respondent can show that they have suffered damage as a result of the unjustified issuance of an injunction (ie, an injunction which was issued without good reason or justification), which has been subsequently set aside, then they may claim compensation from the applicant.

To safeguard against this eventuality, applicants applying for the issuance of injunctive relief on an ex parte basis are requested by the court to provide security for the respondent’s potential damages, usually by way of a bond (ie, a written undertaking to pay the respondent) or a letter of guarantee.

Injunctive relief can be granted against the worldwide assets of a respondent, since it has long been established that Cypriot courts enjoy very wide discretion in relation to the type and extent of the interim orders they may issue.

It is possible to obtain interim (injunctive) relief against a third party in certain specific cases. One such example is whenever an applicant can show that assets held by a third party (against whom no cause of action exists) are in reality the assets of the respondent, held thereby on their behalf – in other words, that such assets would be amenable to execution in case a judgment was obtained against the respondent/defendant by the plaintiff (“Chabra” orders).

Additionally, it is possible to issue disclosure (“Norwich Pharmacal”) orders against third parties who have been innocently or not involved in a wrongdoing and the disclosure of information from them is necessary in order to identify the ultimate wrongdoer, trace assets, substantiate the applicant’s cause of action, etc.

Failure by a party to comply with an issued court order constitutes “contempt of court” and a Cypriot court has the power to compel a person to obey the said order through the imposition of a penalty (ie, a fine) or a sentence of imprisonment, or through the attachment or sequestration of assets.

In addition, Cypriot courts have the power to penalise a party to a court process or any other person for contempt and/or to compel obedience with an issued order, as long as such person has taken notice of the order and knowingly and wilfully encourages or conspires to the contempt of the order.

There are two set of claims under the new CPRs, namely “small claims” which do not exceed EUR10,000 and “ordinary claims”, which exceed EUR10,000.

Ordinary claims are normally conducted through the provision of oral witness/expert witness testimonies under oath before the court.

The examination-in-chief of a witness is made through a written statement, but the cross-examination and re-examination (if any) of the witness must take place orally. The hearing commences with the parties’ opening statements. Following the conclusion of the opening statements, each party presents their respective witnesses and, once the provision of testimony is completed, the parties make their final submissions, which are usually made in writing, although oral closing statements may be allowed as well.

The new CPRs have introduced a detailed process for case management hearings regarding interlocutory applications and the main claim.

Part 23 of the new CPRs governs case management hearings for interim applications (“hearing of procedural directions”), during which the court sets the timetable for (i) the filing of an opposition; (ii) the filing of any supplementary evidence; (iii) the filing of any applications for the cross-examination of witnesses; (iv) the filing of written submissions by the parties and the length thereof; (v) the hearing date; and (vi) any other related matter.

Pursuant to Part 28 of the new CPRs, within 28 days from the date of completion of the pleadings, the parties need to complete and exchange the "directions questionnaire". The court then classifies the action as an ordinary or small claim and sets a case management hearing date.

Case management hearings for ordinary claims are governed by Part 30 of the new CPRs. During the case management hearing, the court issues directions and sets a detailed timetable for the steps to be taken until trial (including the exchange of documents and witness statements, the examination of any pre-trial objections, the filing of the opening statements, the exchange of bundles of documents and the hearing itself). The parties are encouraged to agree on the directions and the timetable in advance and then submit these to the court for approval.

No jury trials are conducted in Cyprus.

Under the rules of evidence currently in force, all evidence (oral, documentary, real, etc) at a party’s disposal may be presented at trial, but its admission is dependent upon its relevance to the litigious facts of the case. In addition, the rule of the “best available evidence” applies and parties must, therefore, present the original versions of documents, if available.

Evidence produced that is not relevant to the issues in dispute shall not be admissible. Likewise, evidence covered by privilege or obtained in violation of the law will not be admissible at trial.

Under Rule 32.1 of the new CPRs, the court has the power to control the evidence to be presented and issue directions as to (i) the matters for which testimony will need to be presented; (ii) the nature of the testimony that will be required to be presented; and (iii) the way in which such testimony will be presented. Further, the court may use its powers to exclude testimony which would otherwise be admissible under the Evidence Law, Cap 9.

Under the new CPRs, no expert testimony is allowed to be presented unless a party obtains the court’s prior leave, pursuant to an application to this effect, which must specify the matters on which the expert testimony will be required and, if possible, the name of the suggested expert.

In small claims, expert testimony is given by a single expert on a specific matter, unless the court directs otherwise.

Further, in ordinary claims, when both parties wish to present expert evidence, the court may order for the testimony to be provided by a single expert in certain circumstances.

The expert testimony needs to be objective and the experts need to offer unbiased opinions on matters within their field of expertise, while also taking into account facts which may have a negative impact on their opinion.

It is worth mentioning that the court also has the power to seek the provision of expert testimony by its own motion.

As previously mentioned, the hearing of a case takes place in open court and the public is free to attend, unless the court orders otherwise.

The general rule, as stated in Rule 37.2(1) of the new CPRs, is that a hearing is public; members of the public may be excluded from all or any part of the trial, however, if this is in the interests of the security or constitutional order or public order or morals of the Republic or where the interests of minors or the protection of the private life of the parties so requires, or in special circumstances where, in the opinion of the court, publicity would prejudice the interests of justice.

According to Article 30 of the Constitution, judgments must be reasoned and pronounced in the course of a public session, but the press and the public may be excluded from all or any part of the trial.

Transcripts of court appearances and hearings are available only to the parties of the proceedings, unless the court permits otherwise.

As noted in 7.4 Rules That Govern Admission of Evidence, the new CPRs have granted express power to the court to control the evidence to be presented at trial by issuing express directions on matters such as how the evidence will be presented and also limit the cross-examination of a witness.

In contrast, the intervention and/or involvement of the court during a hearing or trial under the old Civil Procedure Rules (still applicable on all claims filed before 1 September 2023) is usually limited. However, it is acceptable and, on some occasions, even necessary for the court to intervene in the process and issue rulings on specific procedural or substantial matters for the purposes of safeguarding and regulating the process before it.

During the examination of a witness, the court is permitted to directly pose questions to the witness in order to clarify certain aspects of the testimony, but this discretion is exercised with caution.

Any judgment of the court, whether interim or final, may be issued at the court’s discretion either ex tempore (ie, straight after the hearing) or curia advisari vult (ie, on a future date, after it has been reserved).

The court may also issue an order by its own motion (Rule 3.2 of the new CPRs).

Under the old Civil Procedure Rules, the adjudication of claims was very slow and it was not uncommon for civil cases to take approximately four to six years to be determined at first instance. Under the new CPRs, the general timeframe for the adjudications of civil proceedings is expected to be reduced significantly, while Rule 37.6 thereof provides that the court should fix consecutive hearing dates when possible.

After the issuance of a first instance judgment, the unsuccessful party currently has a right to appeal the same. Such an appeal is expected to be adjudicated within two to three years and the filing of the appeal does not have a suspensory effect upon the first instance decision, save where the execution thereof has been stayed by order of the court.

The appeal process has now been taken on by the Appellate Court following its constitution in July 2023, while in exceptional cases an appeal might be dealt with by the newly established Supreme Court or Supreme Constitutional Court, as provided for by the Law No.145(I)/2022); please refer to 10. Appeal.

The settlement of a civil case is a matter subject to the discretion and agreement of the parties, and no court approval is generally required.

If the settlement of the claim is presented before the court and recorded as a judgment by consent or a rule of court, then it will be recorded in the relevant registry maintained by the Registrar of the District Court pursuant to Rule 38.1, unless the court directs otherwise.

On the other hand, if an agreement for settlement is made between the parties in private and, as result, the action is withdrawn or discontinued by the plaintiff, then the details of such an agreement can remain confidential.

As previously explained, if the settlement of the claim is presented before the court and the terms thereof are expressly recorded as a final judgment, it shall obtain the status of a court judgment and will be subject to the available methods of execution, in the same way as any other domestic judgment; please refer to 9.4 Enforcement Mechanisms of a Domestic Judgment.

Further, if the settlement is reached under Part 35 of the new CPRs and a party does not abide by the terms of the settlement, then the other party may ask the court to (i) lift the suspension of the proceedings; (ii) enforce the terms of the settlement; or (iii) grant any other remedy which is deemed appropriate.

Under Cyprus law, an agreement for the settlement of an action is treated as any other contract. Therefore, a settlement agreement could be set aside if deemed as “void ab initio” (if both parties were under a common mistake as to a matter of fact that is essential to the agreement, where no consideration was provided or when the agreement is deemed illegal) and treated as if it never existed, or as “voidable” (where the consent was given by coercion, fraud, misrepresentation, undue influence) and therefore ineffective from a certain date onwards.

Cypriot courts enjoy a very broad discretion as to the remedies that can be provided to the successful litigant and are able to order compensation in the form of damages, issue declaratory judgments, orders for specific performance of a contract, summary judgments, judgments in default and judgments in relation to interest and costs.

The nature of the damages to be awarded in civil actions lies with the absolute discretion of the court. Types of damages to be awarded by the courts of Cyprus are general damages, special damages or, in limited occasions, punitive/exemplary damages.

The courts have the power to award any amount of damages, without limitation, to the successful party. However, certain rules are applicable and followed by courts, such as the remoteness/foreseeability of the damage, the requirement for mitigation of the plaintiff’s losses, the existence of any potential cap on damages agreed by the parties through a contractual clause for liquidated damages (penalty clauses) and the applicability of any exclusion clauses.

In summary, general damages are awarded to compensate a plaintiff for non-quantifiable loss suffered as a result of the defendant’s wrongdoing, such as future pain and suffering, loss of amenity, loss of earnings, and damage to reputation.

Special damages are awarded to compensate a plaintiff for the quantifiable monetary losses suffered as a result of the defendant’s conduct and, therefore, must be specifically pleaded (with detailed particulars) and proved by the plaintiff.

Damages of punitive and/or exemplary nature are rarely awarded and are limited to cases where the defendant’s conduct was egregiously insidious or accompanied by elements of arrogance, insolence or malice, such that it is necessary to punish the defendant in an exemplary manner.

The courts of Cyprus have the power to award interest from the date of its accrual until final repayment, along with any order for the repayment of a debt to which such interest is payable (either by law or by agreement of the parties). The interest awarded must not exceed the maximum rate prescribed by the law.

Further to this awarded interest in relation to the debt, any judgment issued by the Cypriot courts bears legal interest (currently set at 2.5%) from the date of the filing of the action until final repayment of the judgment debt, unless the court declares otherwise.

Domestic judgments are enforceable under Cyprus Law through different execution measures, such as:

• a writ of execution for the sale of movable property;
• a writ for the sale of the debtor’s immovable property or registration of a charging order (“memo”) over the immovable property of the debtor;
• the registration of a charging order over the judgment debtor’s chattels – eg, shares;
• an order for the repayment of the debt by monthly instalments;
• a writ of delivery of goods, ordering those goods to be delivered to the judgment creditor;
• garnishee proceedings against third parties; or
• bankruptcy or liquidation proceedings against the judgment debtor (although, strictly speaking, not enforcement methods per se).

Different legal regimes apply in Cyprus for the enforcement of judgments issued in other EU member states and judgments issued by third countries.

Judgments From EU Member States

For judgments issued in other EU member states, the provisions of Regulation (EU) No 1215/2012 are applicable. Such judgments are recognised by the courts of Cyprus without any special procedure being required, and without the need for the issuance of a declaration of enforceability. According to the aforementioned Regulation, an applicant wishing to enforce such a judgment in Cyprus must provide the Cyprus court with a copy of the court judgment that satisfies the conditions necessary to establish its authenticity and a certificate issued by the court of origin, as well as a Greek translation of the said documents where necessary. The recognition of a judgment may be refused from the Cyprus courts if any of the grounds for refusal set out in Article 45 of the EU Regulation are applicable.

It must be clarified that the substance of the foreign judgment shall not be reviewed by the Cypriot court, in accordance with Article 52 of the Regulation.

Judgments From Non-EU Member States

For judgments issued by a non-EU member state, the recognition and enforcement process shall depend on the applicability of any multilateral or bilateral treaty of which Cyprus is a signatory, together with the other state, which facilitates the respective recognition and enforcement of judgments.

In the absence of such a treaty with the country of origin of the judgment, the recognition and enforcement may be achieved through the provisions of the Foreign Judgments’ Law, Cap 10, if the foreign judgment has been issued by a Commonwealth country.

If none of the above legal frameworks apply, then recourse shall need to be sought to the common law principles and a new civil action will have to be filed in Cyprus based upon the provisions of the foreign judgment in question. Following the filing of a new action, the judgment creditor shall be in a position to request a summary judgment from the Cyprus court arguing that no defence to the action exists. It is noted that the original foreign judgment must be final and referring to a determined sum payable to the judgment creditor.

Once the foreign judgment has been recognised and registered in Cyprus, it obtains the status of a domestic court judgment and is subject to the methods of execution in the same way as any other domestic judgment, as explained in 9.4 Enforcement Mechanisms of a Domestic Judgment.

As of July 2023, there are two levels of appeal: one before the Appellate Court (or, in exceptional cases, directly before the newly established Supreme Court or Supreme Constitutional Court, as provided for by the Law No.145(I)/2022), and a second one before the Supreme Court or the Supreme Constitutional Court, as the case may be.

An appeal before the Appellate Court can be launched as of right by a litigant, without the need to obtain prior leave, save for appeals against orders for costs. Pursuant to Article 25 of the Courts of Justice Law of 1960 (Law No 14/60), appeals may be brought in relation to:

• any final judgment or order of a court exercising civil jurisdiction;
• any order of a prohibitory or imperative nature, or any order for the appointment of a receiver;
• interlocutory judgments, irrespective of whether these have a determinative effect on the rights of parties or not; and
• any judgment issued by a court exercising criminal jurisdiction.

The option exists for the appellant to appeal against the entire first instance judgment or any part of it. In any event, the appellant must state in the appeal notice all the grounds of appeal and elaborate on those grounds.

The Appellate Court is divided into civil, criminal and revisionary jurisdiction sections, to adjudicate all appeals filed against judgments issued by first-tier courts (ie, district courts and courts of special jurisdiction).

Following the issuance of a judgment by the Appellate Court, a party shall have the right to file an application before the Supreme Court and seek its leave to proceed with a hearing on legal points.

The Supreme Court may also adjudicate an appeal that has been referred thereto by the Appellate Court on matters of major public interest, or matters pertaining to legal unity/certainty or where there exist conflicting judgments of the Appellate Court.

An appeal against any interlocutory judgment and/or order, as well as any final or interim order in proceedings other than civil actions, must be filed within 14 days from the date of issuance thereof. For all other appeals, the deadline for filing is 42 days from the issuance of the first instance judgment.

The above-mentioned deadlines can be extended if sufficient reasons are given justifying the granting of the requested extension.

All appeals must be filed in writing before the Registrar of the Court that issued the first instance judgment, accompanied with an official copy of said judgment.

Regarding appeals against judgments issued by the Appellate Court, the parties have 42 days for the filing of an application for leave. The successful litigant in the proceedings before the Appellate Court shall have 14 days to file their opposition to the application and the Supreme Court proceeds with a hearing to decide whether it will allow the examination of the legal points raised by the applicant.

The Appellate Court has all the powers and duties as to amendment, revision, etc, of the first instance courts, together with full discretionary power to receive further evidence upon questions of fact. Upon appeal from a judgment after trial or hearing of any cause or matter on the merits, such further evidence shall be admitted on the basis of special grounds only.

The Appellate Court also has the power to draw inferences of fact and to give any judgment and make any order which ought to have been made, and to make such further or other order as the case may require, notwithstanding that the notice of appeal may be that a part only of the decision ought to be reversed or varied. The Appellate Court currently also has the power to make such order as to the whole or any part of the costs of the appeal, as it deems just.

If, upon the hearing of an appeal, it appears to the Appellate Court that a new trial must take place, then it may order the setting aside of the first instance judgment either wholly or in part and order the conducting of a new trial.

The Appellate Court has jurisdiction to adjudicate any appeals against first instance decisions, save for exceptional cases involving issues of public law, interest, policy e.a., in which case the appeal will be referred by the Appellate Court to the Supreme Court or the Supreme Constitutional Court, as the case may be, for adjudication.

For the rest, following their constitution as of 1 July 2023, the new Supreme Court and the new Supreme Constitutional Court will act as third tier courts, having jurisdiction to adjudicate appeals against decisions of the Appellate Court in specific cases.

There is no requirement to obtain leave before filing an appeal to the Appellate Court, unless the appeal relates to an order for costs.

As previously mentioned, the Appellate Court has wide powers while dealing with appeals, including the power to reverse, confirm or vary the first instance judgment, as well as order a new trial.

The court has sole and wide discretion as to the issue of costs, but in principle the successful party is entitled to recovery/payment of its legal costs from the losing party. In certain cases, the court might decide to order each side to bear its own costs, if this is in the interest of justice.

The costs are usually calculated by the registrar of the court based on the applicable court cost scales currently in force, and are later approved by the court itself. A party has the right to challenge the amount of costs.

Recoverable costs include the legal costs of a party, the disbursements and other costs incurred in the course of the proceedings (stamp duty, service costs, etc) and VAT.

It should be noted that under the new CPRs, the legal representative of a party may be personally penalised in costs, as the court thinks fit, in specific cases. An order under this rule shall not be made against a lawyer unless the lawyer has been given a reasonable opportunity to appear before the court and explain why such an order should not be made.

When awarding costs, the court may take into consideration a number of relevant facts and factors, primarily the general demeanour of the parties during the proceedings, and not merely which side managed to prove its case/application.

The factors that may be taken into account when awarding costs include:

• the conduct of all parties, which involves:
1. the conduct before, as well as during the court proceedings, and in particular the extent to which the parties complied with any relevant pre-trial protocol;
2. whether it was reasonable for a party to raise, advance or challenge a particular allegation or issue;
3. the manner in which a party has advanced or defended their case or a particular allegation or issue; and
4. whether a claimant who has succeeded in their claim in whole or in part, has overstated/inflated their claim;
• whether a party succeeded in part of their case, even if not wholly successfully; and
• any acceptable settlement proposal made by a party which is disclosed to the court.

Legal costs awarded to a party carry interest; these are currently set at 2.5%.

While certain steps have been taken to incentivise prospective litigants to turn towards alternative dispute resolution methods, litigation still remains the dominant method.

Nonetheless, the use of arbitration (both ad hoc and institutional) is on the rise and more prospective litigants opt for arbitration, primarily because of the expected quicker adjudication of their dispute.

Furthermore, mediation is now considered as the preferred method for resolving certain types of consumer disputes, while new legislation has been introduced providing the option of mediation in family law-related disputes.

ADR methods are not compulsory under Cyprus Law and the parties are free to decide on their preferred method for resolution of their dispute.

It should be noted that under the new CPRs, in the context of the “instructions questionnaire” which parties to pending proceedings are obliged to file in court within 28 days upon completion of the pleadings, a party may make a written request for a stay of proceedings while the parties are making efforts to settle the case by alternative dispute resolution or other means. If all parties request a stay, the proceedings shall be stayed for a period of up to three months, and if a settlement is reached during that time, the plaintiff shall inform the court accordingly. If the period of suspension has expired and the court has not been informed that a settlement has been reached between the parties, then the case will continue to normal adjudication by the court.

There are a number of institutions in Cyprus which provide ADR facilitating services, such as:

• the Cyprus Chamber of Commerce and Industry;
• the Cyprus Arbitration and Mediation Centre;
• the Cyprus Eurasia Dispute Resolution and Arbitration Centre; and
• The Cyprus Center for Alternative Dispute Resolution.

There are two national laws governing the conduct of arbitrations in Cyprus, namely the Arbitration Law (Cap 4) and the International Commercial Arbitration Law of 1987 (Law No 101/1987).

The Law No 101/1987 (based on the UNCITRAL Model Law of 1985) applies exclusively to international commercial arbitrations – ie, arbitrations between parties with places of business in different countries where the subject matter of the dispute has been expressly agreed upon between the parties as relating to more than one country, or where either the place of arbitration or the place of performance of a substantial part of the obligations deriving from the commercial relation in question is situated outside of the jurisdiction.

All other domestic arbitral proceedings are regulated by the Arbitration Law (Cap 4), which is based on the English Arbitration Act of 1950.

Cap 4 provides that, in the absence of a different provision in the arbitration agreement, domestic arbitrations are deemed as containing the implied terms prescribed by the First Schedule of the Law, while Section 30 thereof also states that, unless otherwise specified, the Civil Procedure Rules currently in place in Cyprus will also apply to domestic arbitral proceedings, with the necessary adjustments.

The Law No 101/87 on the other hand, states that the parties are free to determine how the arbitration is to be conducted, but all the parties must be given a full opportunity to present their case and be treated equally.

A more detailed analysis of the matters relating to the enforcement of the arbitral awards is set out in 13.4 Procedure for Enforcing Domestic and Foreign Arbitration.

Article 33 of Cap 4 makes it clear that Cap 4 shall not apply to any arbitral proceedings of a tribunal operating on the basis of the Trade Disputes (Conciliation, Arbitration and Inquiry) Law, or in relation to any award issued by such a tribunal.

Other subject matters that are considered as non-arbitrable are criminal matters, matrimonial disputes and disputes with public policy implications.

As provided in Section 34 of the Law No 101/87, an arbitral award may be challenged within three months from the date on which such party received the award, and only for the grounds mentioned therein:

• a party to the arbitration agreement was incapacitated, the agreement was not valid under the law which the parties subjected it to, or in the absence of any agreement thereon, under the laws of Cyprus; or
• a party was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings, or was unable to present its case; or
• the award deals with a dispute not contemplated by or not falling within the terms of submission to arbitration, or contains decisions beyond the scope of the arbitration; or
• the composition of the tribunal or the arbitration process was in breach of the agreement of the parties or of the law; or
• the subject matter of the dispute cannot be settled by arbitration under the laws of Cyprus; or
• the award is in conflict with the public policy of Cyprus.

Also, under Chapter 4, an award may be set aside in case the arbitrator or umpire has not conducted themself properly in the proceedings, or the arbitration itself or the award was improperly procured.

An arbitral award issued in the context of domestic arbitral proceedings (under Chapter 4) may, by leave of the court, be enforced in the same manner as a court judgment issued in civil proceedings, as explained in 9.4 Enforcement Mechanisms of a Domestic Judgment.

An arbitral award, issued in the context of international commercial arbitral proceedings governed by Law No 101/87, will normally be recognised and enforced in Cyprus following the filing of an application before the relevant district court, accompanied by a duly authenticated original award or a duly certified copy thereof, as well as a copy of the arbitration agreement.

The recognition and enforcement of such an arbitral award may only be rejected on specific grounds, as provided for by the relevant national legislation.

The legal system of Cyprus has recently undergone a major reform, aimed at contributing to the modernisation and optimisation of the administration of justice. The reform focuses on four areas:

• the functioning of the courts, with the introduction of two new specialised courts, a new Appellate Court, a new Supreme Court and a new Supreme Constitutional Court;
• the training of the judiciary;
• the use of e-justice, with the introduction of a new electronic platform “i-justice” for e-filings and electronic communications with the various courts; and
• the revision of the Civil Procedure Rules.