Cyprus Legislation

In 2023, Cyprus implemented a major reform of its judicial system aimed at increasing its efficiency, as the country had some of the longest case processing times in the EU. The key changes included the following:

• The previously unified Supreme Court was divided into the Supreme Constitutional Court (of 9 judges and handling constitutional matters and administrative law) and the Supreme Court (of 7 judges and acting as the highest appellate authority for civil and criminal cases).
• A Court of Appeal was established – a new intermediate court designed to hear appeals from lower courts. Consequently, the judicial system has transitioned to a three-tiered structure: first instance courts, the Court of Appeal (second instance), and the Supreme Court/Supreme Constitutional Court (third instance/highest appellate).
• New Civil Procedure Rules for district courts were developed and came into effect; these introduce more rigorous case management to ensure faster judicial proceedings.
• Specialised courts – the Commercial Court and the Admiralty Court – were created, enabling the more efficient resolution of complex business disputes, with the option for proceedings to be conducted in English.

• District Courts – 6 districts; handle general civil disputes and criminal cases (with imprisonment for less than 5 years)
• Assize Courts – handle serious criminal cases (punishable by more than 5 years’ imprisonment)
• Specialised Courts:
  • Family Court – family dispute
  • Rent Control Tribunals – property leasing issues
  • Industrial Disputes Tribunals – employment issues
  • Military Court – court-martial matters
  • Commercial Court – complex commercial disputes exceeding EUR 2 million, including shareholder disputes, insurance, maritime, and international trade disputes; also specific disputes regardless of amount, such as intellectual property, competition law, and arbitration
  • Admiralty Court – maritime claims over EUR 2 million, including ship ownership/possession, mortgage enforcement, collision damages, cargo claims, crew employment, and ship arrest.
• Administrative Court

It was established in 2015 and has exclusive jurisdiction to hear, in first instance, appeals against decisions, acts or omissions of bodies and individuals exercising executive or administrative functions, where such acts or omissions are contrary to the Constitution or the law, or involve an excess or abuse of power.

• Administrative Court of International Protection

It was established in 2018 and has exclusive jurisdiction to hear, in first instance, appeals against decisions regarding the granting of asylum and other forms of international protection under the Refugee Act 2000, including rejections, withdrawals of status, and detention orders.

• Court of Appeal

A second-instance court that hears appeals against decisions of other, lower courts in civil and criminal cases.

• • Administrative Court of Appeal

Autonomous second-instance judicial body established in 2025 through a major judicial reform to reduce the workload on the supreme judicial level. As part of the Supreme Constitutional Court hierarchy, it hears appeals against decisions from the Administrative Court and the Administrative Court of International Protection, strengthening administrative law and reviewing cases regarding, for example, ‘golden passports’.

• Supreme Court

The highest appellate court for civil and criminal matters.

• Supreme Constitutional Court

It has exclusive jurisdiction over matters expressly defined in the Constitution, including: disputes regarding the scope of authority arising between government bodies; preventive review of the constitutionality of laws and their compliance with EU legislation, upon request of the President; and the official interpretation of the Constitution, as well as the resolution of contradictions between its two authentic texts. At the request of other courts, it may also review the constitutionality of laws within the context of a specific case. The Supreme Constitutional Court hears cases involving matters of public law or major public interest, or cases aimed at ensuring coherence of law when conflicting rulings have been issued by second-instance courts.

Legal framework

• Domestic disputes are governed by the Arbitration Law of 1944 (Cap. 4), which is based on its UK counterpart.
• International commercial disputes are governed by the International Commercial Arbitration Law (101/1987), which is based on the UNCITRAL (United Nations Commission on International Trade Law) Model Law.
• Cyprus is a signatory to the 1958 New York Convention, which provides that contracting states (currently over 160 countries) recognise and enforce awards rendered by arbitral tribunals in other jurisdictions.

Role of Courts

• Courts exercise a so-called pro-arbitration approach: they facilitate arbitration (e.g., by appointing or replacing arbitrators, assisting with the collection of evidence, granting injunctions, or recognising and enforcing awards) without intervening in the merits of the dispute.
• The grounds for setting aside an arbitral award or refusing its recognition are limited and consistent with the standards set forth in the New York Convention and UNCITRAL texts; an award may be set aside only on a very narrow set of grounds, such as procedural irregularities or violations of public policy.

Flexibility for the Parties

• Arbitration in Cyprus is characterised by high autonomy of parties to determine the key parameters of the proceedings. By mutual agreement, the parties to a dispute may choose:
  • • arbitrators (including their number, qualifications, nationality, and the procedure for their appointment or replacement);
    • language of the arbitration (English is frequently used, but any mutually agreed-upon language is permissible);
    • seat of arbitration, which may be Cyprus (a neutral and convenient EU jurisdiction) or another location, with Cyprus arbitration law applying to the extent that the parties have chosen it;
    • applicable law, by explicitly stating in their contract which substantive law will govern the dispute (whether Cyprus law, the law of another jurisdiction, or a combination of legal provisions). In the absence of an express choice, the law most closely connected to the dispute will apply;
    • arbitration rules and procedures: parties may opt for either institutional arbitration (under the rules of Cyprus or foreign arbitration centres) or ad hoc arbitration (governed by the UNCITRAL Rules or any other rules agreed upon by the parties).
• The option to conduct proceedings confidentially, which is particularly significant in the context of commercial disputes.

There are several arbitration institutions and venues in Cyprus that provide rules and infrastructure for the resolution of commercial disputes:

• Cyprus Arbitration and Mediation Centre (CAMC)

An independent non-profit organisation that provides services for the extrajudicial resolution of both domestic and international disputes; it operates under the auspices of the Cyprus Bar Association.

• Cyprus Chamber of Commerce and Industry (CCCI)

An institutional arbitration body used for domestic and international trade and commercial disputes. The CCCI acts as an appointing authority for ad hoc arbitral tribunals based on contractual provisions, but it generally does not function as an independent arbitration institution itself.

• Cyprus Eurasia Dispute Resolution and Arbitration Center (CEDRAC)

An independent arbitration institution established in 2011 and focused on companies from Europe, the Middle East, and Eurasia. Its objective is to provide international businesses with fair, quick, and cost-effective dispute resolution services within a neutral common law jurisdiction. The Center operates under its own Arbitration Rules, which reflect modern international standards and include expedited procedures for disputes under EUR 10 million.

• Cyprus Branch of the Chartered Institute of Arbitrators (CIArb)

A Cyprus-based branch of an international centre for alternative dispute resolution. The branch is accredited to conduct international CIArb courses and administers the Cyprus Arbitration Scheme (a cost-effective solution for commercial and technical disputes under EUR 50,000).

• Cyprus Center for Alternative Dispute Resolution (ADR)

An independent, licensed organisation established in 2018. It resolves consumer-trader disputes out of court.

• Industry-specific and specialised centres – professional associations (covering areas such as maritime law, construction, insurance, etc.) may establish arbitration panels and sets of rules tailored to specific categories of disputes.

In addition to institutional arbitration, Cyprus widely uses ad hoc arbitration (often conducted under the UNCITRAL Arbitration Rules); in such cases, the parties themselves constitute the tribunal and determine the procedure in accordance with Cyprus arbitration legislation.