Debt Collection in Cyprus – Legal Procedure & Judgment Enforcement 2025
Debt Collection in Cyprus – Legal Procedure & Judgment Enforcement 2025
Debt Collection in Cyprus: A Step-by-Step Legal Guide (2025)
Recovering a debt in Cyprus is a legal process governed by the Civil Procedure Rules. Whether you’re a business, individual, or foreign entity, understanding the procedure can save time, money, and unnecessary legal risk.
In this guide, we break down each stage of the debt collection process in Cyprus, from filing a claim to enforcing a court judgment.
Filing a Lawsuit for Debt Recovery in Cyprus
The legal process begins with the filing of a a Claim at the appropriate District Court—usually where the defendant resides or operates their business.
The Claim is a formal pleading that outlines the facts of the case and the remedy sought—typically repayment of a debt or damages. The person filing the claim is called the Plaintiff, while the opposing party is the Defendant.
Serving the Claim
Once the Claim is filed, it must be served on the Defendant by a private bailiff. This is a critical step—no court proceedings can begin without proper service.
If personal service is not possible, the Plaintiff may apply to the court for substituted service, such as publishing the WoS in a local newspaper.
Non-Appearance and Default Judgment
After service, the Defendant has 10 days to appoint a lawyer and file a Notice of Appearance and Defence.
If the Defendant fails to do so, the Plaintiff may file an application for judgment due to non-appearance. This can be heard approximately 45 days after submission, where the Plaintiff proves the claim via affidavit. If successful, the court issues a default judgment.
Filing a Defence and Counter-Claim
If the Defendant appears, a Defence must be filed within 30 days from the appearance date. The Defence should deny any allegations of liability. The Defendant may also raise a Counter-Claim against the Plaintiff.
The Plaintiff may then file a Reply to the Defence. These legal documents are collectively known as Pleadings.
Case Management and Trial Preparation
Once the pleadings are closed, the case is scheduled for a Case Management before a Judge. During this phase, the court addresses preliminary issues and may order:
- Discovery of documents
- Clarifications or further particulars
- Deadlines for filing evidence
Due to caseload backlogs, trials may start 3–4 years after the case is filed.
The Hearing and Judgment
At trial, each party must present oral and documentary evidence. Witnesses are cross-examined, and both lawyers submit arguments before the Judge.
Judgment is usually reserved and issued at a later stage.
Legal Fees and Court Costs in Cyprus
Legal fees are partly regulated by Regulations issued by the Supreme Court of Cyprus and depend on the value of the claim. Cases fall into court scales (e.g., claims between €10,000–€50,000) which determine cost brackets.
As a general rule, the winning party is awarded legal costs. However, parties may privately agree to different arrangements with their lawyers.
Enforcing a Court Judgment in Cyprus
Winning a case does not automatically mean recovering your money. Judgment enforcement is a separate legal procedure. If the Defendant does not voluntarily pay, the Plaintiff must initiate enforcement steps.
Available enforcement methods may include:
- Writ of execution
- Garnishee proceedings (freezing bank accounts)
- Charging orders over property
- Liquidation (for companies)
Note: If the Defendant is a limited liability company with no assets, recovery may be impossible—unless a personal guarantee was signed by a director or third party.
When Is It Not Worth Suing?
Before initiating legal action, consider whether the Defendant has recoverable assets. If not, even a court judgment may be unenforceable—leading to wasted time and costs.
Always request a basic asset check or legal opinion before filing a debt recovery lawsuit in Cyprus.
Need Help with Debt Collection in Cyprus?
At Christophi & Associates LLC , we handle local and international debt recovery cases, enforcement of foreign judgments, and commercial disputes in Cyprus.
📩 Contact us today for a free consultation or to assess the enforceability of your claim.