Buying real estate in Cyprus
Cyprus has one of Europe’s most affordable residential real estate, with an average price of €2,500 per 1 m². The most popular regions among property buyers are Paphos, Limassol, Nicosia, and Larnaca.
By investing €300,000 or more, property owners can get permanent residence in Cyprus. This program’s terms allow them to rent the properties out and earn passive income.
Here is how to buy and sell real estate in Cyprus, and what taxes to pay.
Author •Igor Buglo
Explains housing prices in Cyprus
Buying real estate in Cyprus
How much does Cypriot real estate cost?
Apartments and villas in Cyprus are priced lower than in other EU states. The average price of Cypriot real estate is €2,500 per 1 m²; compare this to €3,100 in Poland or Italy.
The most expensive properties are in Limassol. Housing prices there are almost twice the national average. Nicosia and Larnaca are also in the top 3 cities with the most expensive properties.
Foreigners are interested in buying real estate in Cyprus: in the second quarter of 2023, a 38,5% year-on-year rise in residential property purchases by foreigners was registered.
Foreigners can buy property in Cyprus and get residency by investing in real estate for €300,000. Residential and commercial properties are eligible for the program. Investors become residents of Cyprus in about 9 months after applying for permanent residence.
Cyprus permanent residence by investment
What types of properties can an investor choose from?
To apply for permanent residency, an investor can purchase either residential or commercial real estate worth at least €300,000.
Residential real estate may have many forms: apartments, townhouses, seaside villas, etc. Apart from the property’s value, the main requirement is that it is a primary sale, i.e. the deal should be concluded directly with the builder.
Commercial real estate can come from both primary and secondary markets. Investors can purchase hotels, shops, offices, and industrial properties.
Best areas of Cyprus for buying real estate
Limassol is the most expensive area in Cyprus. Residential property prices vary from €3,400 to €4,500 per 1 m², depending on the building’s location and year of construction.
Foreigners make up about 30% of all real estate transactions in the region. UK and Israel buyers are among Limassol’s most frequent housing buyers.
Limassol has many shops, restaurants, hotels, and bars and is one of the most popular resorts in the country, along with Paphos and Ayia Napa. Limassol Marina is in the historical part of the city, with yacht docks, a beach, hotels, and a spa complex.
Examples of properties in Limassol
Cyprus, Limassol
78 m²
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Nicosia’s southern part is the capital of the Republic of Cyprus. The areas in the north are the Turkish Republic of Northern Cyprus, whose independence is recognised only by Turkey.
Property prices in Nicosia range from €1,700 to €2,200 per 1 m². The most popular areas for buying a home are Ayioi Omoloyites, Strovolos, Aglandja, and Platy.
About a third of all real estate transactions in Cyprus are concluded in Nicosia; half by non-EU citizens.
The developed infrastructure causes the high demand for real estate in Nicosia. The city has Cypriot and international companies offices, government agencies, kindergartens, schools, clinics, parks, restaurants, and shops in every district within walking distance.
Nicosia is also home to four private and two public universities — the University of Cyprus and the Open University of Cyprus.
Examples of properties in Nicosia
Larnaca is the third-largest city in Cyprus. Property prices here are lower than in Limassol and Nicosia. Apartments in Larnaca are sold for at least €2,100 per 1 m².
The region is attractive due to its Mediterranean beaches, six of which have received the Blue Flag for cleanliness and safety. Property buyers also choose Larnaca because of its convenient transport system: the city is close to the international airport and one of the largest ports in Cyprus.
Real estate is in demand in Larnaca and nearby villages: Pyla, Oroklini, and Perivolia.
Examples of properties in Larnaca
Paphos is the most popular area of Cyprus among foreigners. Almost half of all real estate transactions here are concluded with non-EU citizens. Apartment prices in Paphos range from €1,900 to €2,200 per 1 m².
The climate in Paphos is milder than in other parts of Cyprus, with average temperatures of +29°C in summer and +17°C in winter. The beach season lasts from May to the end of October, when the locals relax on sandy and pebbly beaches. Of these beaches, 17 are marked with the Blue Flag.
The city has one of Cyprus’ international airports, PFO. The airport can be reached in 20 minutes by bus or taxi from the city centre.
Property prices in different cities of Cyprus
Ayia Napa has lower apartment and housing prices than in other regions of Cyprus, starting at €1,230 per 1 m².
Accommodation in Ayia Napa is usually bought for renting out to tourists. Real estate is in high demand from May to October, the beach season.
8% is the average return on the rental of real estate. One-bedroom apartments can be rented for an average of €550 per month in the city centre and for €450 per month in other areas.
Examples of properties in Ayia Napa
Kyrenia is a city on the island’s northern coast and part of the internationally unrecognised Turkish Republic of Northern Cyprus. Property purchase and sale transactions in Kyrenia are illegal in all countries except Turkey.
How to buy an apartment or house in Cyprus
Foreigners can select a home in Cyprus themselves or with the help of licensed investment program agents. Agents assist them with housing purchases that lead to getting Cyprus permanent residence by investment.
Buyers can use online real estate sites to select a property by setting filters by city, property type, price, number of rooms, and other options.
When finding a property they like, buyers must find a lawyer and notary in Cyprus to assist with the purchase and sale transaction.
A lawyer is required to check the transaction’s integrity. For example, a preliminary Due Diligence on a property shows whether it pledged with a bank. Professional assistance costs up to 1% of the real estate value.
How to buy a property in Cyprus as a foreigner, step‑by‑step
The property purchasing process usually consists of seven steps.
Choose a property on the island
This can be done remotely. Immigrant Invest has a database with a careful selection of titles in Cyprus.
This can be done remotely. Immigrant Invest has a database with a careful selection of titles in Cyprus.
Get the government's permission
Non-EU citizens must receive a permit to acquire property in Cyprus from the Council of Ministers of Cyprus. When buying housing in a new building, the seller receives permission on behalf of the client.
Non-EU citizens must receive a permit to acquire property in Cyprus from the Council of Ministers of Cyprus. When buying housing in a new building, the seller receives permission on behalf of the client.
Open a bank account in Cyprus
An online application is permitted, but the account will be activated only after a personal visit to the bank’s branch.
An online application is permitted, but the account will be activated only after a personal visit to the bank’s branch.
Enter a preliminary agreement
This will reserve the property for two months. During this period, the seller has no right to change the property’s value, rent it out, resell it or transfer it as collateral.
This will reserve the property for two months. During this period, the seller has no right to change the property’s value, rent it out, resell it or transfer it as collateral.
Make a down payment
The amount is typically 10—30% of the property’s price.
The amount is typically 10—30% of the property’s price.
Conclude the purchase and sale agreement
At this stage, the buyer pays the remaining property value minus the down payment.
At this stage, the buyer pays the remaining property value minus the down payment.
Get a title deed
The new owner of the property submits an application to the Cyprus Land Department, pays a fee, and receives the documents.
The new owner of the property submits an application to the Cyprus Land Department, pays a fee, and receives the documents.
Immigrant Invest guides investors through every step of obtaining permanent residence—from document collection and submission to property acquisition. Our team of international legal experts and real estate specialists carefully selects properties tailored to each investor’s unique goals.
Taking out a mortgage in Cyprus: what is the process?
A mortgage in Cyprus is only available to citizens or foreigners with a residence permit or permanent residence.
The average mortgage rate in Cypriot banks is around 4% per year. The interest rate depends on the property’s value, the term, the down payment amount, and the borrower’s financial condition. For example, at the Bank of Cyprus, the mortgage rate varies from 4.25 to 6,6% per year, and the maximum amount of financing is €500,000.
Banks in Cyprus issue mortgage loans for five to forty years. A borrower must be at most 65 by the time their mortgage is to be paid out.
A down payment is from 10 to 35% of the cost of housing. The larger the initial payment amount, the lower the loan overpayment and interest rate.
Some banks charge a fee for completing a loan. For example, at Ancoria Bank, the commission is 1% of the loan agreement amount.
Taxes and fees when buying property in Cyprus
Stamp duty is a one-time tax that is paid when buying a home. The bid depends on the property value:
up to €5,000 — 0%;
up to €170,000 — 0,15%;
over €170,000 — 0,20%.
The fee must be paid within 30 days after the purchase and sale transaction is concluded.
VAT at 19% is paid when buying a new house or apartment in a new building. If the owner buys housing for permanent residence, they can pay VAT at a preferential rate of 5%.
The transfer tax is paid by buyers of resale real estate. The tax rate is calculated on a progressive scale and depends on the property value:
up to €85,000 — 3%;
up to €170,000 — 5%;
over €170,000 — 8% off.
Property maintenance costs in Cyprus
The annual municipal tax is paid by property owners in Cyprus; it is charged in the amount of €55 to 185, depending on the housing area.
The cost of housing maintenance in Cyprus includes taxes and utilities: electricity, water, Internet, and digital television. On average, utility bills per person living in an apartment of 85 m² are €181 per month.
Electricity. Cyprus is one of the top ten European countries with the highest electricity tariffs: Cypriot residents pay €0,33 per 1 kW. According to Eurostat, the average figure for the EU countries is €0,28 per 1 kW. Electricity bills in Cyprus are issued once every two months.
Water supply. Tariffs for cold water depend on the consumption volume, and Cyprus has no centralised hot water supply. The cost of one cubic metre of cold water is:
€0,9 — under 40 m3per month;
€1,43 — 41 to 80 m3;
€2,45 — 81 to 120 m3;
€5 — 121 m3 and more.
Internet and digital TV. Cyprus has several home Internet providers: Cyta, Primetel, Epic, and others. The Internet connection is free of charge, and the cost of the tariff depends on the Internet speed. For example, in Primetel, the monthly payment will be €14,99 per month for Internet speeds of 10 Mbps and €39,99 for 100 Mbps.
Payment for digital TV depends on the number of channels included in the package. For example, the minimum package price at Epic is €7.99 per month, and the connection itself is free.
5 benefits of buying property in Cyprus
1. Permanent residence by investment. Residency can be granted to foreigners who have invested at least €300,000 in real estate. The money can be invested in a new building’s commercial real estate or housing.
The foreigner must also confirm the annual income: at least €50,000 for the principal applicant, €15,000 for the spouse, and €10,000 each for each child in the application.
Permanent residence does not need to be renewed; it is issued indefinitely. It is enough to come to Cyprus twice a year to maintain this status. After five years, investors can apply for citizenship.
2. Growing real estate market. In the fourth quarter of 2023, the residential property price index in Cyprus rose by 8,3% year-on-year. Overall, the real estate market is expected to grow by 4,05% per annum for the next 5 years, so property buyers can make a profit on their investment.
3. Guaranteed rental yield. Foreigners with residence permits can rent out real estate long-term. They must get a licence from the Ministry of Tourism.
The rental rate depends on the region, the lease term, and the property area. One-bedroom apartments can be rented for an average of €1,500 in the centre of Limassol, €1,000 in Larnaca, and €880 in Paphos. The average rental yield in Cyprus is 9%.
Landlords pay rent income tax on a progressive scale of 20 to 35%. No tax is levied if the property brings the owner less than €19,500 per year.
4. Low property taxes. Property buyers can lower the standard VAT rate of 19% to 5% if this is the first property they buy in the country and they intend to live in it. There are no property transfer fees if the real estate is bought on the primary market.
There are almost no taxes related to owning property: owners only pay insurance of around €40 per month, and property maintenance fees which differ depending on the type and location of the real estate.
5. Safety. Cyprus is one of the top 20 world’s safest countries, according to the insurance company Insully. For the rating, 180 countries were evaluated according to various criteria, including the frequency of natural disasters, the quality of medicine, the number of crimes, and the number of road accidents. The higher the ranking, the safer the country is.
Main takeaways about real estate in Cyprus
Limassol, Paphos and Larnaca are the most popular areas for buying real estate among foreigners.
Apartments are growing in price faster than other properties. In the first quarter of 2024, the apartment prices grew by 9,3% year-on-year.
Cyprus permanent residence by investment in real estate can be obtained by foreigners who bought housing from a developer. The minimum investment amount is €300,000.
A mortgage is available for Cypriot residents. The average mortgage rate at banks in Cyprus is around 4%.
Property in Cyprus can be rented out: income is taxed at 20 to 35%. The average rental yield is 9%.
Immigrant Invest is a licensed agent for citizenship and residence by investment programs in the EU, the Caribbean, Asia, and the Middle East. Take advantage of our global 15-year expertise — schedule a meeting with our investment programs experts.
Frequently Asked Questions
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