Real estate
June 13, 2024
Reading Time: 5 min

Property prices in Cyprus: what expenses to expect

Cyprus’s property investment market continues to grow, recovering from the 2013 crisis and pandemic plights. It attracts both domestic and foreign buyers and is expected to remain strong in the coming years.

The chance to get a permanent residence by real estate investment is one of the contributing factors here. Foreigners choose Cyprus for its stability, favourable tax regime, and high quality of life.

Let’s look at the current state of Cypriot real estate prices and related expenses.

Igor Buglo
Igor Buglo

Walks investors through the Cyprus property market

Cyprus real estate prices: buying property as a foreigner

Property prices in Cyprus: what expenses to expect

3 main benefits of buying Cyprus real estate

1. Profitability. Owners can rent out their properties for an average annual yield of 8,5%. Both commercial and residential real estate are incredibly in demand among foreign renters, including tourists, foreign workers, and digital nomads.

Cyprus Permanent Residency by Investment in !year: a Golden Visa with a Purchase of Real Estate, Securities and Bonds

How to get Cyprus permanent residence by investment

Property reselling will also be profitable since the Cypriot real estate market has been growing for the last 8.5 years.

2. Multi-entry visa. Cyprus property owners become eligible for a multi-entry visa for 3 or 5 years. The visa allows them to spend 90 days within every 6 months in the country.

3. European Union permanent residence. Foreign investors can obtain a life-long Cyprus permanent residence if a property is worth at least €300,000. They can enter the country freely after that time without a visa.

In 5 years, investors can apply for citizenship if desired. Cyprus is an EU member and is also getting closer to becoming a Schengen Area member.

Dynamics of Cyprus real estate prices

Cyprus has witnessed a steady increase in property prices, making it a resilient market. Following a decline in 2013 due to economic troubles and the 2020 stagnation after the 2015 rebound, the market has been strengthening.

It should be noted that the average Cyprus property price growth has been 0,1% quarterly. But prices have also been fluctuating, sometimes increasing by 5% quarterly.

According to the official House Price Index of Cyprus, the first quarter of 2023 showed a 2,1% quarterly increase and a 7,7% annual increase. Unlike in 2022, when the growing construction costs caused a price hike, demand influences the recent trend.

Residential property prices grew the most, with apartment prices specifically increasing for the seventh quarter in a row. One of the reasons is the new country policy, which requires Cyprus-operating foreign companies to relocate their headquarters to the island.

As a result, company owners, managers, and other staff members move to the large economic regions of Cyprus and start house hunting. As of August 2023, foreigners and expats from outside the European Union made one-third of all sales there.

Cyprus House Price Index dynamics year-on-year graph


Housing in Cyprus typically does not experience sharp changes in value
As for separate Cypriot districts, real estate prices continue to grow in all four government-controlled ones — Limassol and Larnaca being in the front.

Limassol boasts one of the highest real estate price dynamics in Cyprus. Apartment prices grew by 10,4% annually between 2022 and 2023, while house prices grew by 9,4%. Overall residential real estate price growth in the district was 10,6% over the year.

Larnaca has apartment prices that grew by an impressive 12,3% annually. House prices increased by 5,8%, and the overall residential real estate price increase was 7,7% over the year.

Paphos has one of Cyprus’s highest annual apartment price increases: 10,3%. House prices also showed a solid 5,7% growth. Residential property prices, in general, grew by 6,8% over the year.

Nicosia is the country’s capital district. Apartment prices in the area grew by 4,4% annually, and house prices grew by 4,2%. Overall annual residential property growth was 4,3%.

How much does Cyprus real estate cost?

The average residential property prices per square metre in Cyprus per district are the following:

  • Limassol — €2,420;

  • Paphos — €1,950;

  • Nicosia — €1,930;

  • Larnaca — €1,435.

The country’s average residential property price is €2,054 per 1 m², making it one of Europe’s most affordable. For comparison, the average price in France is €13,462 per 1 m², in Milan, Italy — €5,271 per 1 m², in Portugal — €4,800 per 1 m².

Taxes on Cyprus property

Cyprus’s real estate taxes are divided into VAT, property transfer tax, and stamp duty.

VAT is only imposed on new real estate; its standard rate is 19%. The VAT rate may be reduced to 5% if the property is the investor’s first in Cyprus and they plan to live there. The property’s buildable area must not exceed 190 m², and the total transaction cost must not exceed €475,000.

Transfer tax is only paid on resale real estate and not on properties with VAT. It’s a fee that depends on the property cost:

  • 3% for properties that cost up to €85,430;

  • 5% for properties worth €85,430 to 170,860;

  • 8% for properties worth over €170,860.

Stamp duty is paid for new and resale real estate and is 0— 0,2% of the transaction cost. Properties worth between €5,000 and 171,000 are taxed at 0,15%, and properties over €171,000 are taxed at 0,2%.

Additionally, property sellers in Cyprus pay a capital gains tax of 20% on the purchase and the sale price difference. Owners who rent their property out pay a 0—35% tax on the income.

Utility costs for Cyprus property owners

An average utility bill in Cyprus ranges between €100 and 500 a month for a 90 m2 apartment. Electricity and water are the main expenses; there is no central heating due to the country’s Mediterranean climate with mild winters.

Electricity in Cyprus is around 20 cents per 1 kW. The price depends on which tariff a property owner pays: home, commercial, or industrial. Payments are made according to the electricity metre, and the bills are paid every two months.

Water in Cyprus is paid monthly using a fixed €22 plus 64 cents per 1 m3. If water consumption exceeds 120 m3, the rate increases to 9 cents per 1 m3.

Municipal fee for house maintenance, such as sweeping, outdoor electricity, and repairs, is also levied annually. It ranges between €55 and 185.

How to obtain Cyprus permanent residence by buying property

Non-EU citizens can invest €300,000 or more in Cyprus real estate and get permanent residence in return. Both residential and commercial properties are eligible.

Residential property can only be bought on the primary market. Investors can buy one or two properties for the overall price of €300,000+. They usually choose apartments, stand-alone houses, condominiums, villas, or penthouses.

Commercial property can be bought on both primary and secondary markets. Investors again can purchase one or two properties for the overall price of €300,000+. The most popular types are hotels, offices, and commercial properties such as shops.

Investors must keep ownership for at least 5 years, and they are allowed to rent it out. After that period, they can resell their investment property.

Other Cyprus Permanent Residence program options include investing €300,000 or more in company shares or investment fund units. In both cases, investors must buy or rent housing in Cyprus for any price and on any market.

How to buy Cyprus property as a foreigner in six steps

2

Get the permit

A foreign buyer needs a government permit to acquire real estate in Cyprus. Lawyers at Immigrant Invest do this on the buyer’s behalf.

Our lawyers also assist the buyer in future stages of the deal, including preparing and translating the documents, filling out forms, and supervising the purchase and sale agreement.

3

Open a bank account

A Cypriot bank account is required for the transaction process. Foreign buyers can open their account remotely but must visit the bank later to make the account viable.

4

Reserve the title

The buyer and the seller sign a preliminary agreement to reserve the title and make it unavailable to other buyers for two months. The buyer makes a down payment of 10—30% of the property’s price.

5

Close the deal

The buyer signs the purchase and sale agreement and pays the remaining amount.

6

Get the title deed

The new owner applies to the Department of Lands and Surveys of Cyprus and receives the title deed.

In a nutshell: Cyprus real estate prices

  1. The average price of Cyprus property is €2,054 per 1 m².

  2. The House Price Index for the first quarter of 2023 showed a 7,7% annual price increase. Apartment prices grew by 8,4%, while housing prices grew by 6,6%.

  3. Limassol has the most expensive real estate in the country, with the lowest average price of €2,420 per 1 m². Residential property prices here grew by 10,8% between 2022 and 2023.

  4. Buyers and sellers pay taxes such as VAT, stamp duty, capital gains, or transfer tax when purchasing property in Cyprus.

  5. Depending on the property size, monthly utility bills in Cyprus range between €100 and 500.

  6. Buying a property for €300,000 makes a foreigner eligible for the Cyprus permanent residence by investment program.

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