The Limitations of Action Law
The Law relating to the statute of limitations for the filing of claims in the Cyprus court will finally come into effect from the 1.7.2012.
For claims relating to contracts for sale of goods and/or provision of services, and in any event claims emanating from breach of agreements in general, the statute of limitation for filing an action in court is 6 years from the date in which the claim became due or the cause of action arose. This means that in the case of invoices issued for the sale of goods or provision of services, a claim can be filed in court from the due date plus 6 years from this date.
For claims that arise before 1.7.2012 when this law will come into effect and which according to the provisions of the new law are today statute barred, a period of one further year will be allowed (as a transitional period) for the filing of the claim in court (starting from 1.7.2012). This means that for any invoices that are issued and due for payment prior to 1.7.2012 and today are statute barred according to the provisions of the new law, creditors will have until the 30.6.2013 in which to file their claim in court before it is actually statute barred according to the provisions of the new law. Any cause of action that has arisen prior to 1.7.2012 and today is not statute barred according to the provisions of the new law, the time limitation period for its lapse will start running from 1.7.2012 onwards.
In all situations, including but not limited to cases involving rights conductive related to sale and delivery of goods and/or provision of services, the limitation period is interrupted and it begins running afresh, inter alias: (a) when the debtor acknowledges his debt in writing and (b) when the debtor pays part of his debt - that exceeds 50% of the entire debt (including any amount of payable tax).