Real estate investment in Cyprus
The Republic of Cyprus restricts selling properties to foreigners: a non-EU citizen can buy no more than two properties and need a permit to purchase them.
Residential property prices almost don’t grow: the average growth is 0.1% each quarter, with fluctuations from a 5%-growth to a 6%-decline. Five years ago, an apartment of 100 m² cost €171,000. However, today it’s sold for €173 000.
of housing in Cyprus
to get permanent residence
of the transaction amount
How the residential property price index is growing in Cyprus
Cost of a 3-bedroom apartment in Cyprus
Penthouse in Limassol, in the tourist area of Agios Tychonas or Pyrgos, and on the first coastline
Apartment in Limassol,
in the Neapolis district,
in a 10-minute walk from the beach
Apartment in the centre of Larnaca,
a kilometre from the sea
What do investors buy?
The most expensive properties are in large cities like Limassol and Larnaca and resort areas like Paphos and Famagusta.
- penthouses and duplexes
Cyprus residence permit or citizenship by real estate investment
Investors can get Cyprus permanent residence if they invest at least €300,000 in real estate. First, the investor gets an Immigration Permit and a permanent residence permit a year later.
After five years of living in the country, you can obtain Cyprus citizenship by naturalisation.
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Taxes and associated costs
Property owners pay an annual tax at a progressive rate of 0% to 1.9% of the cadastral property value.
Income from renting a property out is included in the income tax base. The income tax rate is progressive from 0% to 35%.
maintenance of an apartment
Electricity, gas, water supply, heating, and garbage collection
Internet, TV, and telephone
A property seller pays a capital gains tax of 20% on the difference between the sale and purchase prices. The seller also pays an agency fee.
the sale of real estate
Capital gains tax
Paid on the difference between the purchase and sale prices
Frequently asked questions
The sale of real estate to foreigners in the Republic of Cyprus is limited. A non-EU citizen needs to get a permit first, and then buy no more than two properties.
The real estate market in Cyprus has been recovering after the 2020 stagnation. On average, Cyprus property prices have been growing by 0,1% each quarter. But there are price fluctuations: from a 5% growth to a 6% decline.
There are multiple advantages of investing in Cyprus real estate, for instance:
- local property is a liquid asset. It can be rented out for passive income and resold for profit. Real estate in big cities and resorts of Cyprus brings investors an annual yield of up to 10%;
- residential property worth at least €300,000 is a path to the Cyprus Permanent Residence by Investment program;
- permanent residents of Cyprus don’t pay taxes on global income, including dividends and capital gains. The country has no inheritance tax, and income and property tax rates are low.
A 100 m² apartment in Cyprus costs €173,000 on average. The average price per 1 m² of housing is €1,725
For buying one or two properties worth €300,000 or more investors can obtain a permanent residence status in Cyprus. They can buy residential or commercial real estate.
Immigrant Invest offers a Cyprus real estate database: listings are eligible for the Cyprus Permanent Residence by Investment program. Investors can choose from a variety of properties, including those in the construction stage — which can be bought commission-free.
Cyprus have several types of property taxes. Owners of real estate in Cyprus pay an annual tax at a progressive rate of 0%—1,9% of the cadastral property value. Owners who rent their property out pay the income tax at a progressive rate of 0—5%.
Buyers of real estate in Cyprus pay:
- VAT of 14—19% on new properties;
- Transfer tax of 3—8% on secondary properties.
Sellers of real estate in Cyprus pay a capital gains tax of 20% on the difference between the sale and purchase prices.