Buying apartments and houses for sale in Cyprus is an attractive option both for expats and investors. Expats can apply for permanent residency by investing at least €300,000 in real estate (excluding VAT ranging from 5% to 19%). It is also possible to obtain residency by purchasing commercial properties, which benefits entrepreneurs looking to enter the EU market. After eight years of living in the republic with permanent residency, foreigners can apply for citizenship, which grants visa-free travel to more than 170 countries, including the United States, the United Kingdom, Spain, Norway, Japan, Australia, and New Zealand.
The transaction process is quite straightforward and usually takes 1–2 months. Real estate buyers interested in investment returns can expect capital growth in the long term. Property prices in Cyprus have been steadily increasing; in the third quarter of 2024, they rose by 6.5% year-on-year. The thriving tourism industry also allows property owners to earn rental income, with an average yield of 4.77% per annum. In major resort cities such as Nicosia and Limassol, it may take longer than that.
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How to buy real estate in Cyprus
EU citizens can purchase property in Cyprus without any restrictions. Citizens of third countries also have the right to buy, but before closing the deal, they must obtain permission from the Council of Ministers. This process usually takes no more than a month and involves filling out an application and submitting the required documents.
Foreigners can also apply for a mortgage. Local banks offer interest rates starting from 2%, but in most cases, they are willing to finance about 50% of the total property prices in Cyprus.
Once a buyer selects a suitable option, they pay a reservation fee (around €5,000). The property is then removed from the market for a pre-agreed period, and the sale price is fixed. If the deal goes through, the reservation fee is deducted from the purchase price.
Buyers are advised to hire a local lawyer to conduct due diligence on the apartment or villa. It is essential to ensure in advance that the property is not subject to ownership disputes, outstanding debts, or other encumbrances. Legal fees typically amount to about 1% of the purchase price.
If everything is in order from a legal perspective, a purchase agreement is drawn up. It must be reviewed by a lawyer. After signing and stamping, the document will be registered with the Land Registry, and the remaining part of the purchase price will be paid in accordance with the agreement.
Benefits of buying real estate for sale in Cyprus
- Favorable tax system. There is no property tax in the country, and annual land and property taxes are minimal. This makes owning property in Cyprus more cost-effective compared to many other European countries. Additionally, there is no luxury tax, making the purchase of premium properties even more profitable.
- Profitable rental conditions. The popularity of the island among tourists and expats allows for stable rental income. According to data from the first quarter of 2025, the average rental yield in Cyprus is 4.77% per annum. Demand is particularly high in Limassol, Nicosia, and Paphos, where the yield reaches 5.29%, 4.78%, and 4.25%, respectively. During the season, which lasts from April to October, property owners can profit from short-term rentals, and in the off-season, they can rent out properties long-term.
- Price growth. Demand for houses and apartments is steadily increasing, especially in coastal areas and major cities. This makes them a promising asset with the potential for profit from resale. In the first quarter of 2024, prices rose by 7.8% year-on-year, in the second quarter by 8%, and in the third quarter by 6.5%. Experts believe infrastructure development and the influx of foreign investments will continue to drive price growth in the coming years.
- Simple purchase process. The country offers transparent legislation, transactions are completed quickly and without bureaucratic obstacles. Foreigners can buy property without restrictions, and registration takes a few weeks to two months. The documents are prepared in English, simplifying the process for buyers who do not speak Greek.
Real estate prices in Cyprus
The cost of houses and apartments on the island is more affordable than in other EU countries. The average price of local housing is €1,680 per square meter, whereas in Poland, Greece, and Italy it reaches €2,800, €3,620, and €6,590, respectively. The most expensive properties are located in Limassol: their price is almost twice the national average, ranging from €2,200 to €3,200 per square meter. Next are Nicosia and Larnaca at €1,700–2,400 and from €1,400 per square meter.
Property prices vary depending on the region, proximity to the sea, and infrastructure. Relatively cheap real estate in Cyprus with convenient access to modern amenities and well-maintained beaches can be found in cities such as Protaras and Ayia Napa.
Taxes and other expenses when buying property
| Expense category | Rate | Who pays |
|---|---|---|
| VAT | 19% (a reduced rate of 5% applies for first home purchases) | Buyer |
| Stamp duty | 0–0.2% | Buyer |
| Property transfer tax | 3–8% | Buyer |
| Legal services | 1–2% | Buyer |
| Agent commission | 3–5% | Seller |
Thus, when concluding a house purchase in Cyprus, the buyer bears 4–10% of the main costs, while the seller bears 3–5%. Future property owners should also consider ongoing maintenance costs, such as an annual municipal tax ranging from €55 to €185 and utility bills.
Permanent residency through property for sale in Cyprus
Purchasing real estate may serve as the basis for obtaining permanent residency if its value is at least €300,000. The minimum investment threshold does not include VAT and other taxes. Foreigners interested in participating in the program through capital investments in villas or apartments in Cyprus must purchase the property directly from the developer and confirm that the funds used were transferred from abroad and were not borrowed from a local bank.
It is also permitted to purchase commercial properties. In this case, applicants may consider both the primary and secondary markets. Applicants for permanent residency can buy an office, shop, hotel, or other types of premises.
Other options under the investment program include registering their own company or purchasing shares in local commercial organizations employing at least five people, as well as acquiring shares in investment funds classified as an Alternative Investment Fund (AIF), Undertaking for Collective Investment in Transferable Securities (AIFLNP), or Registered Alternative Investment Fund (RAIF).
| Advantage | Description |
|---|---|
| Accelerated Schengen visa application process | For permanent residents, the procedure for obtaining a Schengen visa is simplified. Although Cyprus is not part of the Schengen Agreement, EU membership provides privileges. |
| Right to conduct business | Permanent residency allows foreigners to register legal entities in the republic without restrictions. Favorable tax policies and access to the EU market support business. |
| Free health insurance policy | Permanent residents have access to the national healthcare system (GHS — General Healthcare System), which covers various services, including complex surgeries. |
| Residency status for family members | Investors can apply for permanent residency for their spouse, minor children, children with disabilities, and financially dependent unmarried student children under 25. |
| Opportunity to obtain citizenship by naturalization | After eight years of living in Cyprus, residents can apply for citizenship. It grants visa-free travel to over 170 countries and the right to work and study in any EU state. |
To obtain permanent residency under this program, it is necessary to:
Prepare documents and open a bank account.
It will be required to fill out government forms and collect, translate, and apostille documents, including passports (of the investor and family members), an income declaration, proof of address in the country, a police clearance certificate, and health insurance. Additionally, the applicant must open a bank account and transfer €50,000 to it.
Fulfill the investment requirements.
Next, the foreigner must purchase commercial properties, apartments, or houses in Cyprus and submit the purchase agreement and ownership certificate to the Land Registry.
Submit an application.
The application must be submitted to the migration department. This can be done either by the applicant themselves or by an authorized representative. The document will be forwarded to the Ministry of the Interior, which will make a decision within two months. If approved, the investor and their family must visit the country to submit biometric data and receive their permanent residency cards.
The best areas to buy property
Nicosia
This is the country's administrative and business center. The capital hosts government institutions, universities, and major business centers, making it attractive for permanent living. It offers a well-developed transport infrastructure, numerous schools, and medical institutions. Among the main attractions are the Cyprus Museum, which has a rich collection of archaeological artifacts, and St. John’s Cathedral. For shopping and entertainment, there is The Mall of Cyprus, one of the largest shopping centers on the island.
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Limassol
The city is known for its dynamic atmosphere, developed infrastructure, and popularity among expats. It is home to Limassol Castle, which houses the Medieval Museum of Cyprus, and MyMall Limassol—the largest shopping mall on the island. The beach zone stretches along the city for dozens of kilometers, and the famous Molos promenade attracts both tourists and locals. The city offers a wide selection of schools, international companies, and offices of large corporations.
Paphos
This is the country's historical gem, listed as a UNESCO World Heritage Site. Here, you will find the Tombs of the Kings and the Archaeological Park of Paphos, where you can admire ancient mosaics. The city is distinguished by its calm atmosphere, making it suitable for family living. It has an international airport, convenient supermarkets, and the Kings Avenue Mall with shops, restaurants, and cinemas. A well-maintained promenade and walking areas create comfortable conditions for leisure and relaxation.
Larnaca
The city is known for its strategic location near the country’s main airport. It combines modern infrastructure with a traditional atmosphere. Among its iconic landmarks are the Church of Saint Lazarus, one of the main religious monuments, and the Salt Lake, where pink flamingos can be seen in winter. The Finikoudes promenade, with its restaurants and cafes, is one of the liveliest spots in the city. For residents' convenience, there are international schools, medical centers, and shopping complexes.
Ayia Napa
The city is known as a resort, but it also attracts those who want to buy real estate in Cyprus by the sea and live near the best beaches in the country. It is famous for Nissi Beach and Cape Greco, a natural park with stunning views. It has all the necessary infrastructure: supermarkets, hospitals, fitness centers, and private schools. During the low tourist season, the resort becomes a quiet and cozy place while maintaining all the amenities of urban life.
Stages of property purchase
- Selecting suitable houses or apartments in Cyprus.
- Obtaining permission from the Council of Ministers. The seller requests the document on behalf of the buyer if a new property is being purchased.
- Opening a bank account. The application can be submitted online, but the account will only be opened after the buyer visits the bank branch in person.
- Signing a preliminary agreement to reserve the property.
- Paying a deposit of 10–30% of the price.
- Signing the purchase agreement.
- Paying the remaining 70–90%.
- Obtaining the ownership certificate from the Land Registry.
