How to Get Security for Costs in Cyprus (order 60 CPR), 2026 Guide

Last updated: 3 August 2026

Understanding how to get security for costs is one of the most consequential interlocutory steps a defendant can take in Cyprus civil litigation. Order 60 of the Civil Procedure Rules (CPR) gives the court wide discretion to require a claimant to put up money or a guarantee before a case proceeds, protecting a defendant who faces the real risk of an unenforceable costs order at trial. The 2024–2026 programme of CPR reform and the launch of the Commercial Court have sharpened both the procedural expectations and the evidential standards that Cyprus courts now apply.

This guide sets out the statutory grounds, the step-by-step application process, the evidence checklist, the instruments the court will accept, and the tactical considerations that litigators and in-house counsel need in practice.

Quick Summary: What Security for Costs Is and When to Use It

Security for costs is a court order that compels a claimant to deposit money, furnish a bank guarantee, or provide another form of financial assurance to cover the defendant’s anticipated legal costs should the claim fail. The mechanism exists to prevent defendants from being left with an unenforceable costs award after successfully defending proceedings. Under Order 60 CPR, the Cyprus District Courts (and now the Commercial Court) may order security at any stage before trial, provided the defendant demonstrates one or more recognised grounds.

At-a-glance checklist, when to apply for security for costs in Cyprus:

• Who may apply. Any defendant (or respondent to a counterclaim) in civil proceedings before a Cyprus court.
• When to apply. As early as possible after the Defence is filed, delay is treated as a factor against the applicant.
• Primary grounds. Foreign claimant ordinarily resident outside the jurisdiction; corporate claimant unable to meet a costs order; claimant whose conduct suggests abuse of process.
• Available remedy. Payment into court, bank guarantee, bond, or solicitor’s undertaking, with a stay or dismissal if security is not provided within the court’s deadline.

Legal Basis in Cyprus, Order 60 CPR and 2026 Reforms

The statutory foundation for security for costs in Cyprus is Order 60 of the Civil Procedure Rules, which empowers the court to order a claimant to give security for the defendant’s costs of the action. The rule confers a broad discretion: the court may fix the amount, the form of security, and the time within which it must be provided. If the claimant fails to comply, the court may stay proceedings or, ultimately, dismiss the action.

The civil procedure rules Cyprus Order 60 framework has remained substantively stable for decades, but the wider context has shifted materially since 2024. The Republic of Cyprus, through the Ministry of Justice and Public Order, has pursued a comprehensive courts-reform programme aimed at strengthening the justice system. Key elements relevant to security for costs practitioners include:

• Statutory grounds codified. Order 60 sets out the court’s power to require security where the claimant is ordinarily resident outside the jurisdiction, where a corporate claimant may be unable to pay costs, or where the court considers it just to do so.
• Stay and dismissal powers. The court may stay proceedings until security is given and may dismiss the action for non-compliance, a potent enforcement mechanism.
• Commercial Court timetabling. The establishment and expansion of the Commercial Court has introduced stricter case-management directions, and early indications suggest that interlocutory applications, including applications for security for costs, are now expected to be filed promptly and heard on expedited timetables.

The Supreme Court of Cyprus has published CPR guiding drafts and annual progress reports that underscore the judiciary’s commitment to reducing procedural delays. Industry observers expect these reforms to continue tightening the window for bringing security applications and raising the evidential bar for both sides.

Grounds for an Application Under Order 60, Step-by-Step Test

A defendant seeking security for costs Cyprus courts will grant must establish at least one recognised ground and then satisfy the court that the exercise of discretion is just in the circumstances. The analysis typically proceeds through two stages: first, is a ground made out; second, should the court exercise its discretion to order security, and if so in what amount and form?

Foreign Claimant Test

The most frequently invoked ground is that the claimant is ordinarily resident outside the jurisdiction. The foreign claimant Cyprus security for costs test rests on a straightforward rationale: if the claimant loses and a costs order is made, the defendant may face practical difficulty, or impossibility, in enforcing that order abroad. The court examines whether the claimant has assets within Cyprus against which a costs order could realistically be executed. Where the claimant is a foreign company with no registered office, branch, or assets in the Republic, the ground is usually established without difficulty.

However, mere foreign residence is not automatic grounds for an order. The court retains discretion and will weigh factors including whether there is a reciprocal enforcement treaty in place, whether the claimant has voluntarily submitted to the jurisdiction, and whether the claim has strong merits that would make a security order oppressive.

Insolvency and Impecuniosity

Where the claimant is a company, the defendant may argue that there is credible evidence the company will be unable to pay the defendant’s costs if ordered to do so. This ground requires the defendant to produce evidence of the company’s financial position, typically company search results from the Department of Registrar of Companies, audited accounts (or lack thereof), and evidence of existing debts or winding-up proceedings. For individual claimants, impecuniosity alone is generally not sufficient; Cyprus courts have historically been reluctant to deny access to justice solely because a natural person lacks means.

The court will consider whether the impecuniosity was caused by the defendant’s own conduct, for example, where the defendant is alleged to have wrongfully frozen the claimant’s assets.

Abuse of Process and Other Grounds

The court may also order security where the claim is brought vexatiously, is an abuse of process, or where the claimant has changed address during proceedings to frustrate enforcement. In practice, these grounds are harder to establish and tend to arise as supplementary arguments rather than stand-alone applications. The defendant must present clear evidence, not mere assertion, of the claimant’s improper purpose or evasive conduct.

When to Apply, Timing, Urgency and Interlocutory Practice

Knowing how to get security for costs is incomplete without understanding when to apply. Timing is critical and is itself a factor the court weighs in exercising its discretion. A defendant who delays the application until close to trial will face a strong argument that the delay is prejudicial and that the application is tactical rather than genuine.

The general rule is to file the application for security for costs promptly after the defence is served and the defendant has had a reasonable opportunity to assess the claimant’s financial position and residency. In the Commercial Court, where case-management directions are set at an early directions hearing, the likely practical effect will be that any security application should be filed before or at that first hearing.

Ex parte applications for security are rare and generally discouraged. The court expects the defendant to put the claimant on notice so that both sides can present evidence at a returnable inter partes hearing. Where genuinely urgent, for example, where the claimant is in the process of dissipating assets or deregistering a company, the defendant may seek an interim stay on an ex parte basis, returnable within days.

Evidence Bundle and Drafting Checklist

A well-prepared application for security for costs turns on the quality and completeness of the evidence filed. Cyprus courts expect the defendant’s affidavit to address each element of the test directly, supported by documentary exhibits. Below is a practical checklist of the documents and evidence that practitioners should assemble before filing.

Core evidence checklist:

• Affidavit of the defendant or defendant’s advocate. Sets out the grounds relied upon, the facts establishing those grounds, and the amount of security sought with a breakdown.
• Company search results. From the Cyprus Department of Registrar of Companies (or the equivalent foreign registry) showing the claimant’s registered office, share capital, directors, and any charges or pending winding-up petitions.
• Financial evidence. The claimant’s most recent audited accounts, or evidence that no accounts have been filed. Bank statements, credit reports, or statutory demands where available.
• Residency and domicile evidence. Evidence that the claimant is ordinarily resident outside Cyprus, passport details, registered address, or absence from the Cyprus population register.
• Costs schedule. A detailed, itemised estimate of the defendant’s anticipated costs through to trial, including advocate fees, court fees, expert fees, travel, and translation costs. The schedule should be realistic and proportionate.
• Enforcement difficulty evidence. Where relevant, evidence that the claimant’s home jurisdiction does not have a reciprocal enforcement agreement with Cyprus, or that enforcement would be impractical.
• Draft order. A proposed order specifying the amount of security, the instrument to be provided, and the deadline for compliance, with a stay provision in default.

Sample order wording, bank guarantee security for costs:

“The Claimant shall within [14] days of the date of this Order furnish security for the Defendant’s costs of this action in the sum of €[amount] by way of an irrevocable, unconditional, on-demand bank guarantee issued by a bank licensed in the Republic of Cyprus, in a form approved by the Defendant’s advocates. In default of compliance, the action shall be stayed until further order.”

Sample order wording, payment into court Cyprus:

“The Claimant shall within [14] days of the date of this Order pay into court the sum of €[amount] as security for the Defendant’s costs. The said sum shall not be released without an order of the Court. In default, the action shall be stayed.”

Practitioners should also prepare a skeleton argument addressing the applicable legal test and key authorities. Where the application is contested, a bundle of authorities (including reported Cyprus judgments on Order 60) should be filed in advance of the hearing.

Instruments the Court Accepts, Pros, Cons and Drafting

Cyprus courts have accepted several forms of security, each with distinct advantages and drawbacks. The choice of instrument often depends on whether the claimant is a domestic or foreign party, the amount involved, and commercial practicalities. A bank guarantee security for costs order is the most common instrument where foreign claimants are involved, while payment into court Cyprus remains the default for domestic parties with available funds.

When drafting a bank guarantee, practitioners should ensure the guarantee is expressed as irrevocable, unconditional, and payable on first written demand. The guarantee should name the defendant as beneficiary, reference the case number, and specify that it remains in force until the final determination of costs or further order of the court. Guarantees issued by banks outside Cyprus should ideally be confirmed by a Cyprus-licensed bank to avoid enforcement complications. For parties exploring how to structure their business presence in Cyprus before litigation arises, understanding company registration in Cyprus can provide relevant background on corporate structures and asset positioning.

Quantifying Security, Likely Quantum and How Courts Calculate It

The amount of security is not a mechanical calculation. Cyprus courts exercise discretion, guided by the principle that the defendant should be protected against the reasonable risk of being unable to recover costs, but that the amount should not be so high as to stifle the claimant’s legitimate access to justice. In practice, the court looks at the defendant’s realistic estimated costs of defending the action through to trial and any appeal.

The costs schedule filed with the application should itemise advocate fees (broken down by seniority and estimated hours), court fees, anticipated expert witness fees, translation and interpretation costs, travel costs for witnesses, and any other reasonably foreseeable disbursements. The court typically does not award security for the full amount of the defendant’s estimated costs; it applies a discount to reflect the uncertainty inherent in costs estimates and the risk that the defendant may not recover all claimed costs even on a successful taxation.

As a general guide, Cyprus courts commonly order security in the range of 50–75 per cent of the defendant’s estimated recoverable costs, though the precise figure depends on the facts. In straightforward claims, the amounts involved may be relatively modest. In complex commercial disputes, particularly those now proceeding through the Commercial Court, security orders in the range of €20,000 to €150,000 or more are not uncommon. Practitioners negotiating financial matters in Cyprus should note that the quantum of security must always be proportionate to the claim value and the complexity of the proceedings.

Tactically, defendants seeking higher security should present detailed, well-supported costs estimates with references to comparable cases. Claimants resisting high quantum should challenge each line item and argue that the estimate is inflated or includes irrecoverable items.

Enforcement and Consequences, If Security Is Not Given or Release Is Sought

The consequences of failing to comply with a security for costs order are severe. If the claimant does not provide the ordered security within the deadline, the court will stay the proceedings. A stayed action remains dormant, no further steps can be taken, and if the claimant continues to fail to comply, the defendant may apply to have the action dismissed entirely. Costs order enforcement Cyprus courts apply in these circumstances follows the standard rules: the defendant may seek an immediate costs order for the interlocutory application and, upon dismissal, for the action as a whole.

The security itself is held until the final determination of the question of costs. If the defendant succeeds at trial and obtains a costs order, the defendant applies for the security to be released in satisfaction (or part-satisfaction) of the taxed costs. If the claimant succeeds, the security is returned to the claimant.

Varying a Security Order and Appeal Routes

A claimant who considers the amount of security excessive or the form of security impracticable may apply to vary the order. Variation applications are heard on notice and require fresh evidence, for example, evidence that the claimant’s financial position has improved, that the defendant’s costs estimate was inflated, or that a reciprocal enforcement arrangement now applies. A party dissatisfied with the court’s decision may appeal. In the Commercial Court, early indications suggest that expedited appeal timetables may be available, though practitioners should confirm the current practice direction. For related tactical approaches in opposing or varying security orders, practitioners may also explore how to challenge the exercise of judicial discretion in interlocutory proceedings.

Practical Tactics, Cross-Border Defendants and Claimant Responses

Security for costs applications rarely exist in isolation. In cross-border disputes, they are often one element of a broader tactical picture. Practitioners should consider the following approaches depending on whether they act for the defendant seeking security or the claimant resisting it.

For defendants:

• Asset disclosure. Request early disclosure of the claimant’s assets within and outside the jurisdiction. If the claimant refuses voluntary disclosure, this can be used as evidence supporting the application.
• Freezing orders. In appropriate cases, combine the security application with an application for an interim freezing order over the claimant’s assets to prevent dissipation.
• Consent orders. Where the claimant is willing to provide partial security, a consent order may be the fastest and least costly resolution. Draft a consent order recording the agreed instrument, amount, and deadline.

For claimants:

• Demonstrate assets. The most effective response is to show that the claimant has sufficient assets within the jurisdiction, or in a jurisdiction with a reciprocal enforcement treaty, to satisfy any costs order.
• Challenge the merits threshold. Argue that the claim has strong merits, making it unjust to require security that could stifle the litigation.
• Offer undertakings. Propose a solicitor’s undertaking or a voluntary payment into court in a reduced amount as an alternative to the full security sought.
• Highlight delay. If the defendant filed the application late, argue that the delay is itself a reason to refuse the order.

Disputes involving foreign nationals working in Cyprus may also raise security for costs considerations where employment-related claims are brought by individuals who have since left the jurisdiction. Practitioners handling such matters may find it useful to review the rules on employment of third-country nationals in Cyprus for background on jurisdictional and residency issues.

Conclusion

Knowing how to get security for costs effectively in Cyprus requires more than familiarity with Order 60 CPR. It demands prompt action, a well-assembled evidence bundle, a realistic costs schedule, and a clear understanding of which instrument, bank guarantee, payment into court, bond, or undertaking, best fits the circumstances. The 2026 reforms and the Commercial Court’s stricter case-management expectations have raised the bar for both applicants and respondents. Defendants should file early, present detailed evidence, and propose a specific, enforceable order. Claimants should be ready to demonstrate assets, challenge inflated costs estimates, and offer proportionate alternatives. For specialist guidance, practitioners can find a Cyprus litigation lawyer through our directory.

Sources

1. CyLaw, Order 60: Security for Costs (Civil Procedure Rules)
2. Supreme Court of Cyprus, CPR Guiding Drafts
3. Ministry of Justice and Public Order, Courts’ Reform
4. European e-Justice Portal, Country Report: Cyprus
5. Supreme Court of Cyprus, Annual Review 2024