Real Estate in Cyprus
Who can buy a property in Cyprus
Property in Cyprus can be purchased by:
- citizens of Cyprus;
- residents of the country;
- citizens of EU countries;
- other foreigners.
There are no restrictions on property purchase for the first three categories. Citizens of non-EU countries can buy no more than two properties, but first, they need to get permission from the Council of Ministers.
Property prices by region of Cyprus
The Cyprus real estate market has started to recover after a prolonged crisis. The average cost per 1 m² of real estate in Cyprus is €1,725. Housing in new buildings is more expensive than real estate in the secondary market.
The highest prices per 1 m² of residential property are in Limassol (from €1,950), Nicosia (from €1,510), Paphos (from €1,325), Ayia Napa (from €1,230) and Larnaca (from €1,140). Famagusta is the city with the lowest prices: the average cost of housing there is €622 per 1 m².
Property purchase procedure in Cyprus
Buying a property on the island takes an average of two months. After selecting a real estate, the buyer reserves it by depositing up to 10% of the cost, and the seller removes it from the market. The parties sign the purchase and sale agreement, and the buyer transfers the first portion of the money: there is no fixed interest.
The next stage is paying associated taxes and obtaining a permit for the purchase of real estate from the Council of Ministers. As soon as the buyer gets permission, they transfer the remaining amount. Then the land committee issues a certificate of ownership.
Property purchase taxes in Cyprus
Real estate buyers pay a value-added tax of 14—19% if they buy a new building. When buying a secondary property, the buyer pays a transfer tax of 3—8%.
Also, all buyers pay stamp duty on a progressive scale of
0,15—0,2%, depending on the transaction amount.
Permanent residence in Cyprus by the purchase of a real estate
A foreigner can get permanent residence in Cyprus by the purchase of real estate worth 300,000 euros or more. But there are some conditions:
- No more than two residential or commercial properties per investor.
- Residential real estate can only be purchased on the primary real estate market, i.e. a new building.
Immigrant Invest has its own database with hundreds of verified properties, including those at the excavation stage, that can be purchased with no commission.
Real estate investment in Cyprus
If you invest in real estate in Cyprus, you can participate in the permanent residency program. Investment options include both residential and commercial objects.
The residential property option requires investing at least €300,000. To be eligible for the permanent residency program in Cyprus, applicants must invest in new objects only: villas, apartments, or townhouses. They can invest in one or two objects — from the same or different developer — with a total value of €300,000.
If investors use the purchased object as their only residency in Cyprus, their property VAT will be 5%. If they rent it out or live elsewhere in the country, property VAT will be 19%.
Investors can also buy a residential property through a company registered in their name, or the name of their legal spouse. They can use that real estate property to generate income: however, they can’t resell it while their Cyprus residency permit is valid — which is a 2-year period. If investors want to resell their property but also renew their residence permit, they must buy another investment property, for the same price or higher.
The commercial real estate investment option requires purchasing non-residential property for at least €300,000 plus 19% VAT. Suitable objects include hotels, resorts, shops, office spaces, and buildings. Investors can choose one or two objects from primary and secondary real estate markets.
You can choose investment property in Cyprus remotely through Immigrant Invest. Our real estate team will assist you in every step. This includes: reserving the object while your residency permit is pending, buying the object to fulfill the investment requirement, and reselling it in two years if needed.
Immigrant Invest is a licensed agent for government programs in the Europe Union and the Caribbean.
Let’s discuss the details
Schedule a meeting at one of the offices or online. A lawyer will analyze the situation, calculate the cost and help you find a solution based on your goals.
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