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.

€1,725 Average price per 1 m²
of housing in Cyprus

€300,000 Minimum investment amount
to get permanent residence

3,25—20,2% Buyers’ related expenses,
of the transaction amount

How the residential property price index is growing in Cyprus

Cost of a 3-bedroom apartment in Cyprus

$5 million

Penthouse in Limassol, in the tourist area of Agios Tychonas or Pyrgos, and on the first coastline

€700,000

Apartment in Limassol,
in the Neapolis district,
in a 10-minute walk from the beach

€400,000

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.

Apartments

penthouses and duplexes
flats

Houses

townhouses
villas

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.

Cyprus suspends the citizenship programme for investments.

Guide on Cyprus permanent residence by investment

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Taxes and associated costs

Purchase

Ownership

Sale

Buyers of properties in Cyprus pay the value-added tax on new buildings or the transfer tax for resale properties and additional fees.

The associated costs will range from 3.25% to 20.2% of the purchase agreement value. When buying a new apartment of 150 m² worth €500,000, the investor will spend €576,000, including additional costs.

3.25—20.2% Of the contract value are related costs
for the purchase of housing

Purchase expenses

New buildings

VAT

14—19%

The reduced rate applies to housing
of less than 250 m²

Resale properties

Tax on the transfer of ownership

3—8%

Depends on the transaction amount

Stamp duty

0.15—0.2%

Depends on the transaction amount

Legal support of the transaction

a lawyer is not necessary

0.1—1%

Taxes

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%.

€1,670 Approximate annual costs for
maintenance of an apartment

Communal payments

Electricity, gas, water supply, heating, and garbage collection

€85—255

per month

Internet, TV, and telephone

€30—60

month

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.

20% Capital gains tax on
the sale of real estate

Sale expenses

Capital gains tax

Paid on the difference between the purchase and sale prices

20%

Agency fee

3—5%

Frequently asked questions

Can foreigners buy property in Cyprus?

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.

Are property prices in Cyprus falling?

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.

Is Cyprus a good real estate investment?

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.

How much is an average house in Cyprus?

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.

How much is property tax in Cyprus?

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.

Igor Buglo

Prepared a guide on investing in real estate in Cyprus