Property Investment in Cyprus

Property Investment in CyprusCyprus is a Mediterranean island State and has a developed infrastructure, attractive taxation,  high quality of life, excellent health and education system, which are key reasons for moving and living on the island, but are also the basis for real estate investment in Cyprus.

One of the most preferred investment instruments is the purchase of real estate in Cyprus, as many families are in the active search of a safe haven for relocation and permanent residence, Cyprus offers all these opportunities.

Today, real estate in Cyprus is one of the most profitable investments in Europe. With a relatively low average price per square meter of real estate, the yield of real estate in Cyprus reaches up to 7% per annum. This is significantly higher than in Greece (4%), Italy (3%), France (2%) and other European Union countries.

International real estate experts consider Cyprus the most promising and profitable European market in the coming years. This is due to the stability and attractiveness of prices, incredible variety of real estate, favourable taxation, remoteness from countries of military conflict in Europe, as well as new infrastructure projects and government initiatives to strengthen the real estate sector.

Advantages of investment in real estate in Cyprus:

  • Cyprus is a country of the European Union and has been a member of the Eurozone since 2004.
  • Cyprus has a strong legal framework, based on British law and widely known as a convenient and efficient system, understandable to investors, fully complies with EU regulations and directives.
  • The island of Cyprus is one of the safest places in the world, here the lowest crime rate among countries
  • EU, so your family and your investment is always safe.
  • The climate of Cyprus is warm and mild. On the island, 300 sunny days a year – here you will feel comfortable all year round.
  • Cyprus – a low-tax jurisdiction that allows you to legally optimize taxes for you, both as an individual and your business.
  • No annual real estate tax in Cyprus – there is no need to pay taxes for the fact of ownership of real estate in Cyprus.
  • The positive trend of real estate value growth from year to year.
  • Investment in real estate in Cyprus allows you to obtain a residence permit for the investor and his family members.
  • The residence permit in Cyprus allows a foreigner to acquire the citizenship of Cyprus when buying a property and staying for more than 5 years.
  • The value of the property in Cyprus is low on the level of other EU countries, but the Cypriot property is the highest yield in the European Union-ROI is up to 7%.

Cyprus Real Estate Market Review

The Cyprus real estate market remains stable and strong in 2023. There has been an unprecedented and steady increase in transactions due to the influx of tourists and foreigners coming to Cyprus for the purpose of moving and acquiring real estate, as well as due to the multitude of infrastructure and development projects, that have revived the economy and the real estate market of Cyprus: so, in 2022, buy real estate in Cyprus decided by 52% more investors than in 2021, and the average price of houses and apartments in Cyprus in 2022 increased by more than 10%.

As a percentage of 2022, 58 percent of real estate sales were made between the local population of Cyprus and 42 per cent were made by foreigners who invested in real estate in Cyprus, which is the highest percentage of outside investment among all European Union countries.

Traditionally, the main buyers of real estate in Cyprus are the British, Israelis, Ukrainians, and Russians. Also in recent years in Cyprus there is a positive trend of growth of demand for real estate for Chinese citizens.

The most popular cities for buying real estate in Cyprus are Limassol, Larnaca, Paphos and Nicosia.

Procedure of buying a property in Cyprus

To buy a property in Cyprus, you have to go through four basic steps:

1) Deposit for reservation of the object

Usually it is from 1,000 to 5,000 €, depending on the value of the property. Thus, the object is withdrawn from sale for a specified period.

2) Signing of a sales contract

At the end of the reservation period, an initial fee is required, which is about 30% to 35% of the cost of the facility. The percentage of deposit is generally dependent on the demand for the facility and the stage of construction of the facility at the time of acquisition.

3) Registration of the contract with the Land Department

Within 30 days after payment of the initial contribution, the contract must be registered with the Land Department, where the buyer pays stamp duty. At this stage, an application is also submitted to the Council of Ministers for approval of the purchase of the property.

4) Balance payment

The remaining 65 percent is paid by agreement between the developer and the buyer.

Costs arising when buying a property in Cyprus

The main costs when buying real estate in Cyprus are VAT, transfer tax and stamp duty.

VAT (Value added tax)

When buying primary real estate in Cyprus, VAT is 5% on the first property and 19% on each subsequent property. When buying secondary real estate, VAT is not charged.

Transfer of ownership tax

Upon full payment of the value of the property and receipt of the appropriate permission of the Council of Ministers of Cyprus, the buyer receives the right of free and unconditional ownership of the immovable property (“Free Hold”) and the title of owner is issued in his name. When transferring ownership in the name of the buyer, the Land Department charges the registration lump sum, the amount of which depends on the market value of the acquired real estate.

Stamp duty (Registration fee in the Land Registry)

Paid by the buyer at the registration of the sales contract in the amount of 1.5 euros for each thousand euros of the value paid for the purchase of a property of up to 170 860 euros, and 2 euros (per thousand) over 170,860 euros.

Services of FINWYN CONSULTANCY LTD when buying property in Cyprus

  • Our company’s real estate specialist selects objects for viewing that are fully consistent with the client’s budget and goals, whether it be investments or
  • property for personal use;
  • We can offer you both facilities, both at the construction stage (the best price on the market) and ready for entry (the possibility of early entry/operation);
  • When selecting properties for our customers, we also contact Cyprus banks/funds, which have various real estate options for sale on the most favourable terms
  • We draw the attention of the client, both to the property itself and to the infrastructure of the area, the reputation
  • the developer, the possibility of further resale or lease;
  • Our company’s lawyers advise the client on taxation for non-residents of Cyprus when buying real estate, as well as on taxes that the client will have to pay during the operation of the facility
  • real estate and further resale;
  • An immigration specialist, FINWYN CONSULTANCY LTD, can advise you on all questions related to obtaining a residence permit in Cyprus;
  • In negotiations with the developer and discussing the terms of purchase of the property, a lawyer can participate – so you can achieve the best purchase terms and check the correctness of the documentation and the financial condition of the developer.


Investment in real estate in Cyprus is profitable due to high yield (ROI up to 7%), low prices compared to other EU countries, tax incentives, booming sectors of the economy, opportunities to get a residence permit for the owner and his family and a good climate.

The value of real estate in Cyprus varies depending on the region and type of property. The average price per square meter in the city is from 2,000 euros, and outside the city from 1,500 euros.

Different regions of Cyprus have their own characteristics. So, Limassol is suitable for business and active life, Paphos – for living with family and children, Larnaca is convenient for its proximity to the airport and low cost of housing.

You can get a residence permit in Cyprus through the purchase of real estate under the program for investors. To do this, you need to buy a new Cypriot property worth 300 thousand euros. Residence for Cyprus investment – one of the fastest and easiest programs for investors in Europe. Also an advantage is the possibility of obtaining a residence permit of Cyprus for the rest of the investor’s family.

Investment in Cyprus property will provide many opportunities for you and your family. You can get passive income, replenish your investment portfolio, profitable investment, or make immigration status for your family and live in a safe and comfortable country of the European Union or combine all the opportunities at once.

The main taxes when buying property in Cyprus are VAT for new real estate and Transfer Fee for secondary real estate. VAT rate – 19% when buying new real estate.  A reduced VAT rate of 5% is applied to the first 200 sq.m. Transfer Tax (Transfer Fee) charged when transferring ownership of secondary real estate and depends on the market value of the facility. Stamp duty (stamp duties) is charged on documents of purchase and sale of real estate.