Real estate investment in Cyprus
Cyprus is one of the greenest and most thriving islands in Europe, with excellent weather and an easy way of life. Beyond its strategic location, the island presents a good case for property investment.
Prices are rising, apartments yield about 5.5% on average, and an investment of at least €300,000 can qualify a non-EU buyer for permanent residence.
Cyprus real estate market key facts
Property prices
As of October 2026, the median asking price of apartments listed on DevelopersCyprus is €470,000, or €3,950 per square meter. For houses and villas, the median asking price is €850,000, or €3,743 per square meter.
On our listings, the median asking price is €655,000 in Limassol and €347,000 in Nicosia.
The median listing home price in Paphos is €649,000, in Larnaca – €357,500, and in Famagusta – €495,000. Since we mainly focus on real estate in Limassol, our number of listings in other districts negatively impacts the accuracy of the calculations for these regions.
The median is the middle value in a sorted list, so a few very cheap or very expensive listings move it less than they move the average. These figures are asking prices on our own listings, not prices paid.
Housing market trends
The Residential Property Price Index (RPPI) of the Central Bank of Cyprus rose 8.5% year on year in the second quarter of 2026, up from 7.5% in the first quarter. It rose in each of the five quarters to June 2026. The Central Bank links the rise to strong demand for housing, mainly from foreign buyers, and to rising construction costs.
Apartment prices rose 8.9% year on year in the second quarter of 2026, down from 10.8% in the first quarter. House prices rose 5.8%, and their growth sped up.
Foreign buyers drove most of the increase in demand. Sales contracts for all property types filed with the Department of Lands and Surveys rose 15.4% year on year in the second quarter of 2026, to 5,298. Sales to foreign buyers rose 22.7% and sales to local buyers 11.0%. The weighted average interest rate on housing loans was 3.23% in June 2026, against 3.26% a year earlier.
Prices rose in every district. Famagusta (10.0%) and Larnaca (9.8%) posted the largest annual gains in the second quarter of 2026, ahead of Paphos (9.6%) and Limassol (7.8%). Nicosia rose least, at 5.7%. Apartments in Paphos rose 18.5% in a year.
(Sources: Residential Property Price Index 2026 Q2, Central Bank of Cyprus, published 24 September 2026, with sales contract data from the Department of Lands and Surveys.)
Property rental yield
According to the RICS Cyprus Property Index with KPMG in Cyprus for the second quarter of 2026, rents keep rising. Apartments recorded the largest gain in a year and retail the smallest.
Average yields in the same index were 5.51% for apartments, 3.01% for houses, 5.63% for offices and 5.78% for retail in the second quarter of 2026. The index covers the government-controlled area only.
Is the property in Cyprus a good investment?
With its strong economy and status as a European Union member, Cyprus presents a stable and attractive opportunity for investors. Average rental yields are about 5.5% for apartments and 3% for houses on the RICS Cyprus Property Index with KPMG in Cyprus for the second quarter of 2026. On the Central Bank index, prices rose 8.5% in the year to June 2026.
In 2026, buying property in Cyprus worth at least €300,000 can qualify a non-EU buyer for permanent residence if it is paid with money from abroad and is either a new home bought from a development company or other real estate such as offices or shops.
The buyer needs a secure annual income of at least €50,000. Citizenship by naturalisation is possible after at least eight years of legal residence, for applicants who pass Greek at level B1 and a civics test, among other conditions of the law.
Cyprus permanent residence by investment
In 2026, foreigners can get a Cyprus permanent residence by investment if they:
- Invest at least €300,000, with money transferred from abroad, in one of four categories: a new house or apartment bought from a development company as a first sale (plus VAT), other real estate such as offices or shops, share capital of a company based and operating in Cyprus that employs at least five people, or units of a Cyprus collective investment fund that invests in Cyprus;
- Have a secure annual income of at least €50,000, plus €15,000 for a spouse and €10,000 for each dependent minor child. On the house or apartment route, this income must come from abroad;
- Together with their spouse, do not take up employment in Cyprus, except as directors of the company they invested in. Where the investment is not in company shares, they may hold shares in Cyprus companies and serve there as unpaid directors.
Under this permit, applicants can bring their spouses and underage children to Cyprus. For the spouse, the applicant's required annual income is increased by €15,000 and €10,000 for each underage child.
The applicant and spouse need a clean criminal record certificate from their country of origin and, if different, their country of residence. The applicant and dependent family members need health insurance covering inpatient and outpatient care.
Permanent residency does not lead to citizenship by itself. An adult applying for naturalisation needs 12 months of continuous legal residence right before the application, with absences of up to 90 days in total allowed, and at least 7 years of legal residence in the 10 years before that. The law adds Greek at level B1 and a pass in a test on Cyprus's political and social life. Other conditions include good character and stable means.
Each year, the applicant must show that they continue to maintain the investment and hold a health insurance certificate (if they have not registered with the General Health System GeSY). The applicant and adult members of their family must show that they still have a clean criminal record every three years.
The residency application process is fast-tracked and takes approximately 2 months.
Our property investment services
- We help to choose from a variety of residential properties with high investment potential, our development projects, and commercial real estate listings in Cyprus.
- We provide support at every stage of selection, negotiation, buying, selling and registration.
- We offer personalised consultations on establishing property portfolios in Cyprus, conducting market analyses, and providing advice on selecting appropriate buy-to-let properties and investment opportunities with the highest ROI.
- We offer professional investment property management services, including rental potential evaluation, maintenance and repairs, administrative duties, tenancy agreement and inventory management.
- If you wish to buy without visiting Cyprus, we act as your agents or proxies. Our dedicated team of trusted professionals, led by Chris Michael, has years of experience assisting foreign investors in this manner.
The top reasons for investing in Cyprus
- Strategic location at the crossroads of Europe, Asia, and Africa is a significant factor for investment in Cyprus, as it is a gateway for businesses to access multiple markets. Its EU membership provides investors with the benefits of a European business environment, including trade opportunities and regulatory stability.
- Positive economic outlook. According to the World Bank, Cyprus's GDP grew 3.8% in 2025 and 3.9% in 2024, after 3.6% in 2023 and 8.7% in 2022. The Central Bank of Cyprus reports strong demand for housing, mainly from foreign buyers.
- The attractive tax system. Exceptions reduce the amount of tax investors need to pay. A Double Tax Treaty Network prevents foreign investors from paying tax twice. The Ministry of Finance explains tax incentives and tax treaties on its web pages.
- Quality business support services: business made easy with a powerful layer of professional services and infrastructure.
- Low business costs: labour, support services, and office rental rates are low.
- Access to talent: Cyprus has a highly skilled workforce.
- Access to markets: European Union member states' markets, EU trade agreements, and access to the major markets boost investment in Cyprus.
- Strong legal and regulatory framework for secure investing: the legal system is based on British common law, facilitating international business. Common law has traditionally provided an excellent framework for contracts, domestic and international sales and shipping. The EU financial, commercial, intellectual property and anti-money laundering Directives and Regulations apply in Cyprus.
(Sources: Cyprus data at worldbank.org, Cyprus Investors Guide: A step-by-step guide to your investment and the Cyprus Tax Guide for Investment by the Cyprus Investment Promotion Agency).
Buying property, land, and other real estate in Cyprus
EU nationals may buy real estate in Cyprus (land, apartment/flat, house, other) without restrictions.
British, United States and other third-country nationals (TCNs) need permission to buy property. The Council of Ministers has delegated this power to the District Officers, so the application goes on form COMM 145 to the District Administration of the district where the property is. There is no fee, and processing takes 2 to 3 weeks.
There are limits. The Ministry of Interior allows a TCN, or a couple together, up to two units: two homes, or one home and a shop of up to 100 sq m, or one home and an office of up to 250 sq m. The other option is a plot to build a home they will live in: the Department of Lands and Surveys sets the limit at 4,014 sq m (3 donums).
Most buyers use a lawyer to check the title and the contract, and a licensed real estate agent to find the property and negotiate.
Buying a property without visiting
This is possible by finding local professionals and using a proxy document. The proxy appoints a person (for example, a lawyer or real estate agent) to act as your agent and representative during the sale and transfer of land/ real estate or during the rental agreement discussion and negotiations.
The proxy can be specific, that is, for a specific purpose or general, for general purposes.
The person appointed as your proxy is in a "fiduciary position". This means that they must act in an honest, loyal and responsible manner towards you.
Proxy documents from abroad
A power of attorney signed abroad is usually signed before a notary and then certified for use in Cyprus. In a country that is party to the Hague Apostille Convention, that country's competent authority adds an apostille, and Cyprus recognises the document with no further certification. In other countries, the document needs diplomatic certification. Cyprus embassies and consulates certify signatures on documents for use in Cyprus, but not their content.
The tax benefits for investors in Cyprus
Cyprus has low property taxes and no inheritance tax, which can lead to higher returns for investors.
No immovable property or inheritance tax
Property owners paid an annual immovable property tax in Cyprus until the end of 2016. In 2017 this tax has been abolished. Rent and gains from a sale are still taxed.
Capital gains tax does not apply when property passes to heirs on death. When an heir later sells, the gain is worked out from the deceased owner's purchase cost, or from the 1 January 1980 value if the property was bought before that date.
Read more about property taxes in Cyprus.
Low corporation tax rate
The corporation tax rate in Cyprus is 15% from 1 January 2026, up from 12.5%.
Tax exemptions for various income types
In Cyprus, these types of income carry no income tax, whether they come from Cyprus or abroad:
- dividends;
- Interest;
- profits from selling securities such as shares and bonds. Capital gains tax of 20% applies to gains on Cyprus real estate and on shares in companies that own Cyprus real estate. Shares on the regulated market of a recognised stock exchange are excluded, and shares on its other markets only if a year's sales total no more than €50,000.
Note:
- Dividends are not subject to income tax. A Cyprus tax resident who is domiciled in Cyprus pays special defence contribution on them at 5% from 1 January 2026. The old 17% rate still applies to dividends from a Cyprus company paid out of profits of 2025 or earlier and received by 31 December 2031.
- Interest is not subject to income tax. A Cyprus tax resident who is domiciled in Cyprus pays special defence contribution of 17% on it. The rate is 3% on interest from Cyprus or EU government savings certificates and development bonds, and from listed bonds issued by companies or by Cyprus or EU local authorities and state bodies.
Cyprus tax residents
People who are tax residents of the Republic are taxed on their worldwide income, whether from within or outside the Republic. Persons who are not tax residents are taxed on their Cyprus-source income.
A person is tax resident in Cyprus after more than 183 days in the Republic in a calendar year, or under the 60-day rule. Since 2026, being tax resident in another country no longer rules out the 60-day rule.
Under the 60-day rule, a person is resident for a tax year if, in that year, they spend at least 60 days in Cyprus and no more than 183 days in any other single state, and keep a permanent home in Cyprus, owned or rented. They must run a business or work in Cyprus, or hold a directorship of a Cyprus tax resident company, and that tie must not end during the year.
How much is income tax in Cyprus for residents?
There is no income tax for the first €22,000 per year. Then, the rate varies according to income, beginning with 20%.
Tax domiciled in Cyprus
For special defence contribution, a person who has been tax resident in Cyprus for at least 17 of the last 20 years before the tax year is treated as domiciled in Cyprus. They keep that status until they have spent 20 years, not necessarily in a row, as non-residents.
