Thinking about buying property in Cyprus? Whether you're an investor seeking strong rental yields or a buyer, purchasing real estate here offers several great opportunities.
Cyprus offers more than just great tax benefits and a stable real-estate market. It has also an affordable cost of living and a Mediterranean lifestyle that few can match. This makes it one of the best places to buy property in Europe. However, it comes with specific legal requirements, costs and risk - all requiring careful consideration.
If you're thinking of buying property on the island, our Real Estate Investment Service
In this step-by-step guide to buying property in Cyprus we will cover:
The best areas to buy, including Limassol, Paphos, Nicosia, Larnaca, and Famagusta. Costs and taxes associated with purchasing and owning property in Cyprus. Legal requirements for EU and non-EU buyers, including title deeds and approvals. A complete step-by-step process, from property selection to finalizing ownership. Key considerations before buying, including financing, due diligence, and working with professionals. Investment insights, covering rental potential, capital gains tax, and market trends Best Areas to Buy Property in Cyprus Cyprus offers a diverse property market, with options ranging from luxury coastal villas to affordable city apartments. Your choice of location will depend on budget, lifestyle preferences, and investment goals.
Limassol is Cyprus’s financial hub, offering high-end properties and strong rental yields.Paphos is ideal for retirees and expats looking for scenic coastal living.Larnaca provides affordable properties with rising demand from investors.Nicosia is best for long-term residents and professionals.Below, we'll explore the top areas for real-estate in Cyprus. We'll highlight the main advantages, price trends, and investment potential, helping you find the area that is just right for you.
Limassol: The Business & Investment Hub Limassol is Cyprus’s most high-demand property market. It offers a business-friendly environment, plenty of apartments with strong rental yields, as well as luxury homes.
As the country’s financial and commercial hub, the city attracts entrepreneurs, digital nomads, investors, and high-net-worth individuals. The city is undergoing rapid development, with major infrastructure projects, luxury resorts, and high-end apartments driving property values.
Why Limassol?
High rental demand: Popular for expats, business professionals, and tourists.Strong price growth: Prices have been rising steadily, because of Limassol's strong appeal among both local and foreign buyers.Business & lifestyle appeal: A cosmopolitan city with world-class restaurants, a thriving port, and a growing tech sector.Median Property Price: €660,000
Best for: Investors seeking high rental yields and luxury properties or business owners relocating to Cyprus.
Nicosia: The Affordable Capital Nicosia is Cyprus’s capital and administrative centre, offering affordable property prices, lower cost of living and strong rental demand – especially among locals. While it lacks a coastline, it is a hub for government institutions, universities, and international companies. Making the capital city an attractive location for long-term residents and investors.
Why Nicosia?
Affordable prices: Some of the most favourable property prices on the island, making it a preferred choice for locals.High rental demand: Popular with students, professionals, and expats.Growing economy: Expanding business districts, universities, and private hospitals.Median Property Price: €350,000
Best for: Investors looking for stable, long-term rental income and buyers seeking a budget-friendly home in Cyprus.
Paphos: Top Choice for Expats & Retirees Paphos, located on Cyprus’s southwest coast, is a top choice for expats, retirees, and second-home buyers. Known for its rich history, beautiful coastline, and relaxed lifestyle, Paphos attracts both holiday home buyers and investors.
The district is home to many of the island's famous landmarks. Such as the Tombs of the Kings, Aphrodite’s Rock, and the Akamas Peninsula, to mention a few. These sites attract both culture enthusiasts and nature lovers alike. Paphos also boasts Cyprus’s second-largest airport, providing easy access for international buyers.
Why Paphos?
Strong expat community: Particularly popular with British and European retirees.Ideal for residency investment: Qualifies for permanent residency through real estate investment.Balanced market: Offers a mix of affordable apartments and high-end villas.Median Property Price: €567,000
Best for: Retirees, second-home buyers, and investors looking for a relaxed coastal lifestyle with residency opportunities.
Larnaca: Affordable Holiday Rentals Larnaca offers some of the most affordable property prices in Cyprus. This makes it an attractive entry point for first time buyers and investors seeking gvalue for money. The district has been slower to develop than others. However, new infrastructure projects and strong tourism growth are making it more appealing.
Larnaca is home to Cyprus’s biggest airport, which brings in millions of tourists each year, driving up demand for short-term holiday rentals. The city also benefits from ongoing urban makeover, including new residential and commercial developments.
Why Larnaca?
Most affordable seaside city: Offers lower property prices than other seaside districts on the island.Strong rental demand: A prime location for short-term rentals, driven by steady tourism.Growing development: New projects and government investment are improving infrastructure.Median Property Price: €310,500
Best for: Investors looking for an affordable entry point and buyers interested in short-term rental income from tourism.
If you plan to rent out your property, it’s important to know how rental income is taxed in Cyprus. Our detailed guide on rental income tax
Famagusta (Ayia Napa): Coastal Tourism Hotspot Famagusta, home to both Ayia Napa and Protaras, is one of Cyprus's most famous costal regions. It offers affordable properties and strong rental demand fuelled by tourism. The district is also famous for its sandy beaches, crystal clear waters, and lively nightlife.
While parts of Famagusta remain politically sensitive, key areas such as Ayia Napa, Protaras, and Paralimni continue to attract expats, retirees, and investors alike. The region also boasts significant historical sites, including the Venetian Walls and Othello Castle, adding to its appeal.
Why Famagusta?
Tourism hotspot: Strong rental demand driven by tourism, with Ayia Napa and Protaras attracting visitors throughout the year.More affordable: Offers coastal properties at lower prices than other districts.Strong growth potential: Increasing international interest & real estate development.Median Property Price: €455,000
Best for: Investors targeting holiday rentals and buyers looking for affordable coastal properties with growth potential.
Key Considerations Before You Buy Before buying, it’s important to know the key factors that affect your purchase. Choosing the right location and ensuring legal compliance are essential. With careful planning, you can avoid expensive mistakes and find a property that suits your needs.
Define Your Purpose Understanding why you're buying will determine the best location, type of property, and financial considerations.
Are you buying for:
A primary residence? Consider proximity to schools, work, and healthcare.A holiday home? Look for high-demand coastal areas with tourism appeal.An investment? Decide between long-term rental yields vs. short-term vacation rentals.Legal Status of the Property Checking the legal status of a property is essential to avoid ownership issues. In Cyprus, some properties lack separate title deeds, making resale or ownership transfer difficult.
What to check before buying:
Title deeds: Ensure the property has a valid, separate title deed.Outstanding debts: Check for unpaid mortgages or tax obligations.Building permits: Verify there are no legal disputes or violations.A lawyer can help conduct due diligence to ensure a smooth transaction.
To learn more about how to secure your Title Deeds, check out our guide.
Buying Property in Cyprus as a Foreigner If you are buying property in Cyprus as a foreigner, then the process will differ depending on your residency status.
EU vs. Non-EU Buyers:
EU citizens: No restrictions, can buy property freely.Non-EU citizens: Must obtain approval from the Council of Ministers before finalizing a purchase.Approval Processing Times:
Limassol: 30-45 daysPaphos: 4-5 monthsLarnaca, Nicosia & Famagusta: 1-2 monthsThe approval is generally given without difficulty. However, non-EU buyers should factor in the waiting period when planning their purchase.
Key Considerations for Foreign Buyers:
How many properties can you buy? Non-EU buyers are typically limited to one property, but exceptions apply.Can you get a mortgage? Some Cypriot banks offer financing to foreign buyers, but terms vary.Residency options: Buying property in Cyprus as a foreigner is a popular way to gain permanent residency. For more information check out our Golden Visa Service .Professional Legal Help is Essential Hiring an independent lawyer is essential when looking to buy property in Cyprus. A lawyer who isn't connected to the seller or developer helps protect your interests. Ensuring that you and the transaction is legally secure.
Key legal protections include:
Reviewing contracts to ensure fair terms. Conducting due diligence on title deeds, debts, and permits. Identifying potential risks and negotiating agreements with the seller on your behalf without bias. Cyprus does not regulate the title of "developer", which means some sellers may not meet professional or legal standards. That’s why it’s essential to work only with trusted, vetted developers. Our Real Estate Investment Service
To ensure a secure purchase:
Hire a lawyer who is independent of the seller or developer. Use licensed real estate agents with a proven track record. Work with vetted property developers who follow best practices. The Step-by-Step Process to Purchasing Property in Cyprus This part of our guide to buying property in Cyprus, will walk you through every step of the process. Ensuring you make informed decisions and avoid costly mistakes. We recommend that you follow a structured approach, as it will help you ensure a smooth transaction and protect your investment.
Step 1: Research and Choose a Location Selecting the right location is the first and most crucial step. The ideal area will depend on your lifestyle needs, investment goals, and budget.
Factors to consider:
Proximity to work, schools, and healthcare facilities if buying a primary residence. Rental demand and potential yields if purchasing for investment. Tourism appeal if considering short-term holiday rentals. Long-term infrastructure developments that could impact property value. Step 2: Set a Budget & Secure Financing Before making a purchase, create a clear budget. This should cover the property price and associated costs like legal fees, taxes, and maintenance expenses.
Key financial considerations:
Property purchase price: Prices vary by location and type.Additional costs: Legal fees, stamp duty, and transfer fees.Financing options: Cypriot banks have mortgage options for both residents and non-residents. However, you must provide proof of stable income and creditworthiness.If you plan to finance the purchase, it is advisable to compare mortgage rates and terms from different banks to secure the best deal.
Step 3: Find a Trusted Real Estate Agent and Lawyer Working with experienced professionals is essential for a secure and legally compliant property purchase.
Choosing the right professionals:
Real estate agent: Consider a licensed and independent real estate agent to ensure objective advice.Lawyer: Must conduct due diligence, contract negotiations, and legal checks to protect your interests.Developer: Property development isn’t a protected title in Cyprus. Therefore, it’s important to select a trusted developer to reduce risk.Step 4: Conduct Due Diligence & Property Inspection Conducting due diligence and inspecting the property before signing any contract is important. This can help prevent legal and financial issues down the line.
Due diligence should include:
Checking title deeds: Ensure the property has a valid and separate title deed.Verifying outstanding debts and mortgages: Properties should be free from financial encumbrances.Confirming planning and construction permits: Verify that all permits to prevent future complications.Check the seller’s legal status: If the seller is a company, your lawyer can search the Registrar of Companies. This will show any financial or legal risks.Completing thorough due diligence before signing a contract helps prevent unexpected complications and ensures a secure investment.
Step 5: Reserve the Property (Optional Step) Once you have selected a property, you may need to pay a reservation fee. This fee usually ranges from €5,000 to €10,000, based on the property's price. This payment confirms your commitment to buy and is deducted from the final price. It also removes the property from the market for a set time, typically 30 to 45 days after signing the reservation agreement.
Key considerations for the reservation fee:
Generally held by the estate agent or the seller’s lawyer. Credited toward the purchase price upon signing the Sale Agreement. The reservation agreement should clearly explain how the fee is managed. This is important if the due diligence reveals any problems. Before making any payments, consult your lawyer to ensure the reservation agreement protects your interests.
Step 6: Negotiate & Sign the Contract of Sale The contract of sale is a legally binding contract that outlines the full terms of the purchase. We recommend you, with the help of your lawyer, negotiate the terms of the agreement. This ensures that both you and the seller are protected.
Key provisions in the Sale Agreement:
Purchase price and deposit amount. Payment structure and deadlines. Completion dates and conditions. Any specific restrictions, obligations, or contingencies. After having signed the agreement, you have six months to register it with the Land Registry. Doing so will secure your ownership rights. Your lawyer will handle this process on your behalf.
Step 7: Obtain Council of Ministers Approval (For Non-EU Buyers) Non-EU buyers must secure permission from the Council of Ministers before finalizing the property transfer.
Processing time varies by location:
Limassol: 30-45 daysPaphos: 4-5 monthsLarnaca, Nicosia, Famagusta: 1-2 monthsThis step is not needed to take possession of the property. However, it is important for the final transfer of ownership. Your lawyer will submit the application and monitor the progress.
Step 8: Pay Fees & Obtain Title Deeds The final step in secure ownership is paying the fees and obtaining the title deed. This document officially confirms that the property belongs to you.
Key costs involved in the transfer:
Property Transfer Fees: Ranges between 1.5% and 4% for resale properties.Exemptions: New properties are exempt from the transfer fee; instead, buyers must pay VAT. We will dive deeper into this topic in the tax section below.Additional taxes: Buyers must settle capital gains tax, sewerage board tax, and local municipal taxes before finalizing the process.Once approved, the buyer must visit the Department of Lands and Surveys to complete the official title deed transfer. If multiple buyers participate, the transfer fee decreases because the co-owners divide the assessed value.
For an estimate of your property transfer fee, you can use the Department of Lands and Surveys' online tool.
Step 9: Finalise Utilities & Move In Once the property has been legally transferred to your name, you must set up essential utilities before moving in.
Utility services to arrange:
Electricity and water connections. Internet and telecommunications services. Some providers, such as for electricity, require a deposit for first-time customers. We recommend you check the specific requirements in advance.
Taxes & Cost When Buying Understanding the associated cost of buying property in Cyprus is essential for budgeting and avoiding unexpected expenses. Buyers should factor in both one-time transaction costs and ongoing taxes and maintenance expenses. Below is a breakdown of the key costs associated with purchasing property in Cyprus.
One-Time Costs These are the initial costs associated with buying in Cyprus.
Property Purchase Price The agreed-upon sale price of the property, which varies based on location, size, and market demand.
Stamp Duty Stamp duty is payable on the property purchase agreement at the following rates:
0.15% on the first €170,000 0.2% on amounts above €170,000 Capped at €20,000 VAT (5% or 19%) As of June 2023, Cyprus revised its VAT regulations for primary residences. The reduced 5% VAT rate applies only to the first 130 sq m of a primary residence if:
The property value does not exceed €350,000. The total transaction value does not exceed €475,000. The total constructed internal area does not exceed 190 sq m. The planning permission application was submitted before 31 October 2023. For properties that do not meet these conditions, the standard VAT rate of 19% applies.
Property Transfer Tax Transfer tax ranges between 1.5% and 4%, depending on the assessed market value of the property. However, if you have paid VAT on a new property, this tax does not apply.
Tax-saving tip: Purchasing a property in joint names divides the value between owners. This can lower the tax burden for each person.
Legal Fees Legal fees typically amount to around 1% of the property value, covering services such as:
Contract review and negotiations. Due diligence on title deeds and property debts. Land Registry and property registration processes. Surveyor’s Fees (Optional but Recommended) Hiring a surveyor is advisable to assess the structural condition of the property before purchase. The cost typically ranges between €500 and €1,500, depending on the complexity of the inspection.
Ongoing Costs & Taxes Property owners in Cyprus must account for more than just the purchase price. They need to think about yearly taxes, maintenance fees, and possible income tax on rental earnings. Below is a breakdown of the key ongoing costs.
Municipal & Local Property Taxes Property owners must pay an annual property tax to the local municipality. This usually ranges from €85 to €256 each year, based on:
Property size Location Municipality-specific rates Sewerage Tax A small annual levy calculated at 0.03% to 0.035% of the property’s 1980 valuation. This tax contributes to the maintenance and expansion of local sewerage systems.
Communal Fees (If applicable) When buying a house in a gated community or apartment building, owners need to take maintenance fees into account. These fees cover shared spaces like lobbies, pools, elevators, gyms and security services.
Costs typically range from €30 to €100 per month, depending on the facilities and property size.
Income Tax on Rental Income Rental income in Cyprus is taxable, but the taxes applied depends on if the property is rented:
By an individual or a company; and/or For long-term or short-term rentals Understanding how rental income is taxed in Cyprus is essential for property owners. Our complete guide to rental income taxation
Capital Gains Tax When selling a property in Cyprus, capital gains tax (CGT) is levied at 20% on net gains. However, certain exemptions apply:
Primary residence: If you lived in the property as your main home for at least five years, you may qualify for partial tax exemptionsExemption thresholds: Individuals may qualify for lifetime CGT allowances, reducing taxable amounts under specific conditions.Proper tax planning and legal advice are essential to ensure compliance with Cypriot regulations and to minimize tax liabilities.
Conclusion & Final Advice Our guide to buying property in Cyprus has covered everything you need to know. We've discussed choosing the right location, understanding the legal implications, and cost considerations. We also explained the tax implications to help you make a successful purchase. However, remember that a successful purchase requires careful planning and legal support.
Key takeaways for a successful property purchase:
Work with independent legal advisors to verify title deeds, contracts, and regulatory compliance. Choose a location based on your goals, whether for investment, rental income, or long-term residence. Factor in all costs and taxes upfront to avoid unexpected expenses. Ensure due diligence is completed before committing to a property. If you’re ready to begin your property search, we can help you make it a smooth and secure process. Our team connects you with vetted developers and experienced legal partners to guide you every step of the way. Check out our Cyprus Real Estate Investment Services
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