The Complete Guide to Cyprus Real Estate

Posted: - Updated: February 15, 2021

IMPORTANT UPDATE: It’s official, Cyprus has closed its popular citizenship by investment program on 1 November 2020. What this means is, investors will no longer be able to acquire a Cypriot passport by investment.

Looking to secure European citizenship? Malta offers a direct investment route to a Maltese passport. Click here for more info.

As a large Mediterranean island, Cyprus boasts long stretches of gorgeous beaches, a tranquil lifestyle under the sun, and reasonably priced luxury villas. This makes it incredibly tempting for expats to buy real estate in Cyprus, with the majority of families choosing to either relocate or possess a second home in this piece of paradise. In this complete guide to Cyprus real estate, we cover everything you need to know about buying Cyprus real estate. 

Some of what we’ll cover include:

  • Best places to buy real estate in Cyprus
  • How to buy property in Cyprus
  • Cyprus citizenship by real estate investment

Owning Cyprus real estate: Top benefits

There are many reasons to buy Cyprus real estate for investment in the country. 

Housing market that’s optimal for foreigners Housing market that’s optimal for foreigners
Real estate investment in Cyprus gains you legal residency or a passport Real estate investment in Cyprus gains you legal residency or a passport
Low property taxes Low property taxes
Huge international community Huge international community
World-class beaches World-class beaches
Excellent transport links to the rest of Europe Excellent transport links to the rest of Europe

Where to buy real estate in Cyprus?

Before diving into the best places to buy real estate in Cyprus, it’s important to know that Cyrpus is actually divided into two separate factions. Northern Cyprus is considered Turkish, while Southern Cyprus is considered Greek, and therefore part of the European Union. Northern (Turkish) Cyprus is not part of the EU. 

Most of the properties for sale on Northern Cyprus territory have very high risk involved for buyers because ownership of the property and the right to sell these disputed properties remains contentious. 

Expats buy real estate across four main cities in Southern Cyprus: Nicosia, Larnaca, Limassol, and Paphos. In general, where to buy real estate in Cyprus largely depends on your lifestyle preferences and budget.  

Best cities to buy real estate in Cyprus

Where to buy real estate in Cyprus largely depends on the buyer’s long-term goals.  Questions to ask yourself include:

  1. Are you going to permanently live in Cyprus?
  2. Do you just want to use your property as a holiday home?
  3. Are you going to rent out your property?
  4. Do you need to meet a minimum investment threshold to qualify for Cyprus’s Residency by Investment or Cyprus Citizenship by Investment Program?

Cyprus real estate in Limassol

Owning Cyrpus real estate in Limassol is fantastic for active families. Limassol is a cosmopolitan city, with an excellent choice of international schools to choose from. Here, you will find everything you need to lead a comfortable life, with many shops, restaurants, bars, and entertainment venues to pick from. Additionally, if you’d like to rent out your property to tenants, then Cyprus real estate for rent are currently in high demand in Limassol due to limited supply and increasing demand. Living in Limassol, is, however, more expensive than in other parts of Cyprus.

Paphos real estate for sale in Cyprus

Real estate for sale in Paphos, Cyprus, is extremely valuable for busy individuals who like to travel frequently. With the advantage of having an airport nearby with excellent transportation links, it is generally considered cheaper to have real estate in Paphos. Some pick Paphos so they can save on living expenses and travel to Limassol for work every day. Paphos is considered more of a laid-back environment compared to Limassol, with most of the properties being sold as private houses, not flats.

Real estate for sale in Cyprus: Nicosia

Real estate for sale in Cyrpus, Nicosia, is great for buyers who are looking to let property out due to its stable demand originating from the domestic market. Many Cypriots work in Nicosia since it’s the capital city so a long-term rental opportunity is a good investment. However, Nicosia is located inland and doesn’t have access to the sea directly, so it wouldn’t be wise to buy property in Nicosia for a holiday home or short-letting opportunity. 

Buy real estate in Cyprus, Larnaca

Buy real estate in Cyprus, Larnaca, if you love the beach and a slower pace of life. Larnaca is close to the Larnaca airport, it’s located right by the sea, and has very affordable property prices in comparison to Limassol or Paphos. While Larnaca is small, the city is considered to be an undervalued investment opportunity.

Property types to choose from 

Cyrpus has many property types to choose from. You can either purchase a holiday home to occasionally occupy, buy a property to rent out long-term, or buy a residential home. 

Residential homes: From apartments and villas to old stone houses in peaceful villages, modern houses in urban environments, and bungalows in the middle of the woods, you have many options to choose from. You can buy a second-hand home and renovate it completely to your taste and desire, or buy a modern home ready for immediate occupancy. 

Holiday home:  Many people buy properties for holiday use. In Cyprus, the sun and sea go hand-in-hand, so if you’re thinking about getting a holiday home, then getting a villa by the coastline or a house equipped with a pool is an excellent idea.

Buy real estate for investment in Cyprus: Thanks to Cyprus’s residency by investment program and citizenship by investment scheme, you can choose to invest in real estate and in turn, get permanent residency or even citizenship in Cyprus. If you carefully select a property with the idea of letting it out, you can get a great return rate. Buy-to-let is a solid proposition if you have the funds to invest, as well as if you manage to earn a generous income from letting the property out. You can benefit from capital accumulation in a rising property market. 

How Global Citizen Solutions can help

We are a boutique consultancy firm with years of experience delivering bespoke residence and citizenship-by-investment solutions for international families. With offices worldwide and an experienced, hands-on team, we help clients from around the world acquire Golden Visas or homes while diversifying their portfolio with robust investments.

If you’d like to inquire about our Cyprus real estate investment services, we encourage you to contact one of our property specialists.

 

Cyprus real estate market history and overview

The Cypriot real estate sector has long played a positive impact on the nation’s economy. In 2018 alone, the sector was responsible for 38.5% of the annual growth rate of the country and 16% of the Cypriot economy Gross Value Added.

While the COVID-19 pandemic has hit the Cypriot real estate market hard, there are positive signs that the real estate market is making a slow but steady recovery. Cyprus continues to be regarded as a global hub for international real estate investors, with an astounding variety of property types and price ranges to choose from. 

At present, Limassol captures the highest share of the real estate market (37%), with Nicosia coming in second place, with the largest year-on-year increase (+10% in sales). Non-nationals continue to be the major drivers of the real estate sector, with 47% accounting for the total transactions activity. 

What are the real estate costs like in Cyprus?

Real estate costs in Cyprus depend on the property type and area you pick. For example, a two-bedroom townhouse in Paphos costs around €160K. A three-bedroom villa with a pool will cost from €220K. In Larnaca, you can find a good two-bedroom apartment for €180K or a five-bedroom villa costing €350K. Generally speaking, there are plenty of cheap real estate options in Cyprus.

Step-by-step guide on how to buy property in Cyprus

EU nationals can buy real estate in Cyprus without any restrictions, but non-EU nationals are only allowed to buy around one acre of land or one house or apartment. All expats buying property in Cyprus must first apply with the Council of Ministers for permission to buy a property. 

Approval is usually given, but the process for obtaining approval can take a while. That’s why it’s recommended to get a real estate lawyer in Cyprus who can take care of the whole application for you.

All applicants must submit the following:

  • Property details
  • Current owner information and property contract
  • The buyer’s current residence and income statement
  • Highly recommended to at least consult with a real estate lawyer in Cyprus first to get to learn about the specific requirements and documentation required for buying property.

Cyprus real estate for rent

If you wish to buy real estate in Cyprus for rent, then you must first procure a formal contract of sale. It should then be deposited with the District Lands Office within two months of being signed by both parties. The buyer must also put down a deposit of around 10% of the sale price. The title deed can only be legally transferred once the government has given permission and the funds have been certified. If you have a real estate lawyer in Cyprus handling your affairs, they can register the property in the name of the owner.

Property taxes & stamp duty

When buying a property in Cyprus, you are subjected to transfer fees, stamp duties, and legal levies. Usually, it’s advised to factor in 15% over and above the buying price to cover these respective registration fees and legal costs ( if you choose to get a real estate lawyer in Cyprus). 

The stamp duty must be paid after you sign legal documents to secure your assets in Cyprus, and the duty fee depends on the property’s market value.

Top recommendations when buying Cyprus real estate

There are a lot of moving pieces to consider when getting a property to invest in Cyprus. Overall, the following recommendation is given to potential buyers:

  • Get a real estate lawyer in Cyprus
  • Ensure the property isn’t in the middle of an ownership dispute (common for real estate for sale in Northern Cyprus)
  • Have a broker or an independent buyer’s agency inspect the property for any signs that you’re being oversold on the property
  • Make an inventory list of any damages to the property, as well as a list of renovations or construction needed
  • Check access to utilities and services, especially if you want to buy to rent

Cyprus residency by real estate

Cyprus residency by real estate can be obtained by purchasing a brand new property at the minimum value of €300K.  It’s one of the fastest and most straightforward investor visa programs in Europe, where you and your immediate family can gain Cyprus residency by a real estate investment within two months. 

A key benefit of this type of real estate investment in Cyprus is that you and your family can gain a second home and access the right to live, work, and study in Cyprus, as well as travel freely everywhere within the European Union.

Cyprus citizenship by a real estate investment

Cyprus runs a Citizenship by Investment Program, where you can acquire Cypriot citizenship in around six months. To qualify for the program, an investment of €2 million in real estate is required. 

Acquiring Cyprus citizenship by a real estate investment is extremely rewarding since a Cypriot passport effectively grants you the right to live, work, and study anywhere in Cyprus and the European Union. It’s a fantastic opportunity that can be passed down to your children, giving them more freedom of opportunity. 

The best part is, that most of the Cyprus real estate for sale come at competitive market prices, with great anticipated ROI and rewarding rental income potential. Investors looking to get a Cyprus citizenship by a real estate investment will be pleased to know that you can purchase several properties at once to make up the required real estate investment value. 

For more information about a real estate investment in Cyprus for residency or citizenship, check out our ultimate guide to Cyprus citizenship by investment below.

Cyprus Ultimate Guide

 

Cyprus passport benefits

There are many reasons to consider a real estate investment in Cyprus for citizenship. A Cyprus passport grants you the following:

  • The right to live, work and study in Cyprus or anywhere else in the EU
  • Protection of EU authorities and legal system
  • Ability to freely move goods, services, and capital within the EU zone
  • Cyprus passport ranks 13th in the world in terms of global mobility. You can travel to over 146 countries without a visa. 

Property specialists in Cyprus

Why not speak to one of our real estate specialists about buying real estate for residency or citizenship in Cyprus?

We are a boutique investment firm with years of experience delivering bespoke residence and citizenship-by-investment solutions for international families. At Global Citizen Solutions, we can simplify access to property investments, provide local insights, help with legal assistance, tax planning, and more—all while ensuring efficient, personalized, and confidential service.

Frequently asked questions about real estate in Cyprus

How cheap is real estate in Cyprus?

Real estate in Cyprus is relatively cheap compared to other countries. For example, a three-bedroom villa property can cost you around €350,000.

Why should I get a real estate lawyer in Cyprus?

When buying property abroad, you are subjected to various registration fees, levies, and stamp duties. While it’s a rewarding experience to get a property, it’s also a tedious one that requires complex paperwork and a robust understanding of the real estate government-mandated requirements.  This is why it’s strongly recommended to hire a Cyprus real estate lawyer to help you out with the property acquisition.

Is it worth to get North Cyprus real estate for rent?

It’s not recommended getting North Cyprus real estate for rent for various reasons. Firstly, North Cyprus isn’t recognized as a state by the United Nations. A long-standing dispute between the Turks and Greeks means there’s ongoing conflict between recognizing properties for sale in Northern Cyprus. Many occupants who had to flee Northern Cyprus during the 1970s conflict still have the rightful claim of properties, so the chances of falling into a dispute about a certain property you buy in Northern Cyprus is high.

What’s considered a prime real estate in Cyprus?

A prime estate in Cyprus is usually considered to be found in the touristic areas in Cyprus, by the coastline and with a pool in mind. This makes it a perfect property to rent out for tourists or occupants on a long-term basis.

For city living, where to get real estate in Cyprus?

For city living, it’s recommended to get real estate in the following cities in Cyprus: Paphos, Larnaca, Limassol, Ayia Napa and Nicosia.

How do I get a Cyprus residency permit by a real estate purchase?

To get a Cyprus residency permit by a real estate purchase, you must apply to the Cyprus Residency by Investment Program and make a minimum real estate investment of €350,000.

Is real estate to buy in Cyprus worth it?

Real estate to buy in Cyprus is absolutely worth it if you’re looking to get residency quickly in this beautiful island. For a €350K investment, you and your family will not only get a beautiful second home, but also residency permits which permit you to legally live, work and study in Cyprus.

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