- Hot, but not hot: what is the market temperature?
- Who is buying property in Cyprus?
- Cyprus residence permit for the purchase of a new property
- The process of buying a property in Cyprus: stages, taxes, additional expenses, mortgage
- The regions of Cyprus from the point of view of the buyer of the property
- Market forecasts: summary
The Republic of Cyprus has been a member of the EU since 2004 and the eurozone since 2008, and is preparing to join the Schengen Area, according to various estimates, in 2026 or 2027. Currently, a Cyprus residence permit does not give the right to travel freely in Europe, and with the country's entry into the visa-free zone, such an opportunity will appear and the destination will become even more interesting.
Experts expect an increase in real estate liquidity, an increase in international demand and the development of the rental market. «Cyprus' residential real estate market is entering a more mature phase," notesAnastasia Yanni, CEO Cyprus Sotheby's International Realty.
Foreigners are active on the island and without additional preferences. Many people move to Cyprus for the sake of a quiet life in a pleasant climate, education of children in good international schools and low taxes. Thanks to the immigrants who open IT and fintech startups in the country, a progressive international environment has already formed here. Another advantage: English is the official language along with Greek. If you know English, you'll fit in easily.
Taxes in Cyprus. Cyprus remains one of the countries in Europe with the lowest taxes. The island is especially attractive for those who can obtain the status of non-dom (non-dom), that is, they have not lived in Cyprus for 17 of the last 20 years. This status is given upon relocation (you need to get a tax number, apply for the status, register with Gesy) and is valid for 17 years.
Rates for tax residents with non-dom status:
- For passive income (dividends, interest) -0%
- For capital gains (except for profits from the sale of Cypriot real estate) - 0%
- On real estate;(annual property tax) – 0%
- Inheritance tax -0%
- Pension tax - 0-5%;(up to 19,500 euros per year - 0%, over 5%)
- The tax on dividends for company owners is 0% (subject to certain conditions)
Corporate taxes:
The standard corporate tax is 15%(the EU average is 19-20%).
For technology companies using intellectual property, IP Box mode with an effective rate of 2.5%.
You can become a tax resident by living in Cyprus for more than 183 days a year, or according to the 60-day rule: staying in the country for at least 60 days a year, but you must not be a tax resident of another country and have permanent housing in Cyprus.
Cyprus is a pretty expensive country. The cost of living for a family of three or four people, excluding rent, is about 2,500 euros per month in Paphos or Larnaca and about 30% more in Limassol.
Hot, but not hot: what is the market temperature?
By the end of 2025, the total value of real estate transactions on the island reached a record 6.5 billion euros, which is 8% more than a year earlier. 25,600 transactions were completed (+4% by 2024), and the average monthly turnover rose to 543 million euros, according to PwC Cyprus. The residential sector accounted for 4.5 billion euros (69% of the market), with apartments becoming the main growth factor, accounting for 60% of the total increase in value.
According to an analytical report by Cyprus Sotheby's International Realty, 14,717 residential real estate transactions were registered in 2025 - 7% more than a year earlier. Turnover in the 4th quarter alone reached 1.27 billion euros, becoming the highest quarterly figure. At the same time, 38% of the market (5,597 transactions) accounted for the middle and high price segments, and apartments were sold almost 7 times more often than houses.
Cyprus' housing market has gone through two major shocks. The first was the global financial crisis of 2008, which brought down prices by 25-40%. The second is the banking crisis of 2013 (the famous deposit haircut"), which became the absolute bottom point: the market fell to 70% of the 2008 level. A decade of gradual recovery followed.
Today, the market has not only fully recovered its decline, but also broken historical records.:Apartment prices in 2025 exceeded the peak of 2008. Apartments have become the main driver of growth, showing a ten-year increase in value in some regions by 100% or more.
Last year, almost all regions recorded an increase in the turnover of transactions: in Famagusta by 27%, in Paphos by 17%, in Nicosia and Larnaca by 15%. Limassol was the only region with a slight decline (-3% in transaction volume), but at the same time retained 41% of the total market volume in value terms.
The last three years have been particularly successful: real estate prices increased by 6.6% in 2023, 1.9% in 2024 and 5.7% in 2025.
The positive dynamics intensified in 2026. According to the latest data from the Department of Land Resources, in the first four months of 2026, 6,320 real estate purchase and sale agreements (of all types, not only housing) were registered in Cyprus - 14% more than in the same period of 2025. Moreover, the growth is observed in all regions: from +11% in Nicosia to +25% in Famagusta.
In addition to the prospect of Schengen, the market dynamics are influenced by the influx of immigrants from Russia, Ukraine, Israel and other countries (although it has decreased compared to 2022-2024), the development of tourism (more than 3.5 million people per year), easing mortgage lending conditions (interest rates in in the range of 2.9%, 3.1%, long-term interest fixation is available), limited supply of new housing in good locations.
To sum up, the island's housing market is active, but the growth is due to objective reasons, and there is no question of overheating yet.
Who is buying property in Cyprus?
Foreigners made about 28% of all transactions in 2025 (25% a year earlier), with 66% of purchases made by non-EU citizens. The largest increase in interest from foreign investors was recorded in Nicosia and Famagusta (+20% each), while Paphos and Limassol became the leaders in the concentration of transactions (together 60% of all transactions with citizens of other countries).
The trend towards strengthening the role of foreign buyers is only getting stronger. In 2026, according to data for January and April, buyers from the EU and non-EU countries accounted for 42.6% of all real estate transactions. Paphos is especially significant, where foreigners buy more than twice as many properties as locals.
How has foreign demand changed over the past 10 years?In 2013-2020, the driving force was purchases for the purpose of obtaining a passport (the investment citizenship program was closed in 2020). In 2021-2023, there was a post-bubble growth and a relocation boom. Since 2023, the excitement has subsided and stabilization has set in.
"The Cyprus market is largely formed by external capital, which makes it flexible, but at the same time sensitive to global changes," commentsVictoria Yatsyuta, MySpace Real Estate Manager.
The geography of property buyers in Cyprus is wide. Data from 2024-2025 shows that Russians predominate in Limassol, followed by Israelis and Greeks. The British are in the lead in Paphos, slightly ahead of the Israelis and Russians. Larnaca has become a center of attraction for investors from Israel, Lebanon and the UK. Famagusta is dominated by the British. Greeks are the leaders among foreigners in Nicosia, followed by Romanians and Russians.
"The market has noticeably balanced," Anastasia Yanni notes. "Previously, expensive real estate dominated thanks to the passport program [the Cyprus investment citizenship program was closed in 2020]. Now the demand has shifted towards residential housing. These are objects in the middle price segment: apartments from 200 thousand euros and houses from 500 thousand euros.
The main objectives of buying a house in Cyprus:
- investments (yield of 4.7%),
- moving,
- second home,
- capital preservation.
Cyprus residence permit for the purchase of a new property
The most popular way for citizens of non-EU countries to legalize a residence permit is through real estate investments (the program is available to everyone, including Russians). An investment residence permit opens a fast path to obtaining permanent residence, which takes from six months to a year. The advantage of the program is that you can pre-open an account in Cyprus to participate in it.optional: the buyer transfers funds from his foreign account directly to the developer's account.
Investment criteria: 300,000 euros (+VAT)
Investment options:
● Purchase of up to two housing units on the PRIMARY market from the developer with a total cost of at least 300,000 euros.
● Purchase of other types of real estate (offices, shops, hotels) with a total cost of 300,000 euros the secondary market is also possible here.
There are options for investing in company shares and investment fund units.
An investor, his spouse and dependent children under the age of 25 receive a residence permit. There is no need to undergo an interview, medical examination or take language proficiency exams. There are no tax consequences.
There is also a permanent residence of category F for those who buy housing for less than 300,000 euros or on the secondary market. The applicant must prove a guaranteed annual income of at least 30,000 euros (plus 5,000 euros for each family member) and transfer 30,000 40,000 euros from abroad to a Cyprus account. The review period is 12-18 months, and the applicant cannot permanently reside in Cyprus during the review.
EU citizens receive a MEU1 residence permit automatically if they have a lease agreement and a bank statement (in the amount of at least 1,000 euros).
The process of buying a property in Cyprus: stages, taxes, additional expenses, mortgage
The process of buying property in Cyprus for a foreigner looks like this in a simplified way:
- Define goals and preferences, choose a real estate agent.
- Find and hire an independent lawyer (lawyer) registered with Cyprus Bar Association.
- Prepare documents: travel plan, KYC documents, income source certificates, documents for permanent residence (if planned).
- The lawyer conducts due diligence:checks the title of the owner in the Land Registry, the presence of encumbrances, mortgages, building permits.
- After the lawyer's approval, pay the reservation fee;(to your lawyer's client account).
- Book a trip to Cyprus or arrange an online viewing.
- Inspect the objects and make the final choice.
- The lawyer draws up or verifies the purchase and sale agreement, agrees on the terms.
- Sign the purchase and sale agreement.The lawyer submits the contract to the Land Office for registration.
- Pay the remaining amount (usually through a lawyer's client account).
- The lawyer submits an application to the Council of Ministers (for non-EU residents) for approval of the purchase.
- Get the keys and take ownership.
Additional transaction costs:
- The tax on the transfer of ownership is 0% if the property is subject to VAT; 3.8% on a sliding scale (with a 50% discount). Learn more in our article about taxes in Cyprus.
- VAT is the standard rate of 19%, preferential 5% (subject to conditions). For more information, see our material on taxes in Cyprus.
- Legal expenses are about 1% of the transaction value.
- Stamp duty has been abolished for real estate worth up to 170,860 euros from 2026; over 0.2%.
- Agent's commission:In Cyprus, the buyer does not pay a commission to the agency.
Foreigners, including citizens of the Russian Federation, can take out a mortgage in Cyprus. Initial payment:30% of the value of the property when buying the first property as a holiday home; 40% 50% when buying for investment purposes.
The base rate of the European Central Bank is 2.15% (as of May 2026). Market rates range from 3.5 to 6% in euros, floating, but long-term fixation is available.
For Russians who do not live in Cyprus but have incomes in Europe, a mortgage is possible. If the income is only in rubles, the banks will most likely refuse. Those working in Cyprus with a residence permit / permanent residence - initial payment of 40% (you can bargain up to 30%), you need to work in Cyprus for at least six months and a stable income.The regions of Cyprus from the point of view of the buyer of the property
Limassol is a business capital and a city of skyscrapers
Limassol is the second largest city on the island, the largest port and the main business center. The headquarters of many international companies are located here. Limassol remains the most dynamic and mature real estate market in Cyprus, especially in the high and medium segments.
Features:maximum concentration of foreign demand, high-rise construction, active development of the premium segment. Limassol has the best private schools and medical centers in the country.
Types of real estate:high-rise complexes, premium apartments, villas. The primary market prevails.
Purchase prices:
● Price per square meter:4,000 8,000 euros per square meter (premium from 10,000 euros per square meter)
● Median house price: 815,000 euros
● Median apartment price: 315,000 euros
Rent:2,000 euros per month for a 2+1 apartment.
The most sought-after locations: Marina, Germasogeia, Agios Tychonas. Experts recommend the first line and projects with developed infrastructure.
Suitable for whom:for relocation, business, and investments with a high entry threshold. Those who are looking for an active, dynamic and safe lifestyle.
Paphos is a city of villas and low-rise buildings
Paphos is located on the west coast of the island. According to mythology, this is the birthplace of the goddess Aphrodite. The entire city is recognized as a UNESCO Heritage site. Paphos is an ideal combination of investment potential and high quality of life in a beautiful place with well-developed infrastructure.
Features:lack of high-rise buildings due to restrictions, a quieter region, popular with families, retirees and buyers looking for a balance between price and quality of life.
Types of real estate:villas, townhouses, low-rise complexes. The market is mixed (primary and secondary).
Purchase prices:
● Price per square meter:2,000 euros per square meter
● Average selling price in the luxury segment: 697,000 euros (as of the beginning of 2026, it turned out to be higher than in Limassol)
● Apartment 2+1: from 250,000 to 400,000 euros
Rent:800,000 euros per month for a 2+1 apartment.
The most sought-after locations: Coral Bay, Kato Paphos, Tala. Experts recommend villas with views and rental properties.
Suitable for whom:for permanent living (families, retirees), for recreation, for investments with moderate risk. Those who want to avoid the hustle and bustle of city life, but have all the infrastructure at hand.
Larnaca is the fastest growing region
Larnaca is the oldest settlement on the island. Today it is a modern European city by the sea. It is home to the largest international airport and a major seaport. Larnaca is one of the fastest growing regions of Cyprus with active infrastructure development.
Features:prices are significantly lower than in Limassol or Paphos,active construction of new projects, high investment attractiveness. The region remains more accessible, which makes it interesting for investors.
Types of real estate:mainly the primary market, many new projects in the premium segment.
Purchase prices:
● Price per square meter:1,800 euros per square meter
● Apartment 2+1: from 250,000 to 400,000 euros
● The most sought-after budget: 150,000-300,000 euros
Rent:700-1,800 euros per month for a 2+1 apartment.
The most sought-after locations: Mackenzie, Finikoudes, Dhekelia. Experts recommend investing in new projects and buying at an early stage of construction.
Suitable for whom:for those who travel frequently (10 minutes to the airport), for families who are looking for a safe place with good infrastructure, for investors hoping for capital gains. The budget starts from 150,000 euros.
Nicosia is a stable market for local residents
Nicosia is the administrative center of the island. Unlike the coastal regions, there is practically no tourist demand here. The market is focused on locals and long-term rentals, which makes it more stable but less profitable for short-term investments.
Features:low interest of foreigners (excluding Greeks, Romanians, Russians), the secondary market prevails.
Purchase prices:
● Price per square meter:1,500 euros per square meter
● Apartment 2+1: from 200,000 to 350,000 euros
Rent:600 1,500 euros per month.
Locations: Strovolos, Engomi.
Suitable for whom:for long-term rental investments, for those who do not need proximity to the sea, for those with a limited budget.
Famagusta (Ayia Napa, Protaras, Paralimni) An undervalued resort region
Features:a resort market with seasonal demand."This is still an undervalued region: here you can buy a new house by the sea for 250,000 300,000 euros, which is considered a unique offer for Cyprus and Europe as a whole," notes Victoria Yatsyutastrong>.
Types of real estate:mainly primary market, villas and apartments.
Purchase prices:
● Price per square meter:2,500 euros per square meter
● New house by the sea: from 250,000-300,000 euros
The higher price per square meter in Famagusta compared to Larnaca is due to the resort nature of the region: it is dominated by facilities near the water, with high tourist potential. Larnaca is primarily urban housing, which provides a lower entry threshold.
Rental:high seasonal profitability (short-term rental).
Locations:Protaras, Ayia Napa. Experts recommend villas by the sea for short-term rentals.
Suitable for whom:for recreation, for short-term rental investments, for those who are looking for a quiet place to live with their family (Protaras). For lovers of nightlife and hangouts - Ayia Napa.
Cheat sheet for choosing a region
| Goal | Recommended regions |
| Permanent life (relocation) | Limassol (active rhythm, business), Paphos (calm, family friendly), Larnaca (affordable, fast-growing)|
| Seasonal holidays | Paphos, Famagusta (Ayia Napa, Protaras) |
| Investments (profitability) | Limassol (stability, premium), Larnaca (growth, affordable price), Paphos (moderate risk)|
| Saving on purchases | Larnaca (from 150,000 euros), Nicosia (from 200,000 euros), Famagusta (houses by the sea from 250,000 euros) |
| Purchase of a premium/luxury property | Limassol (first line, skyscrapers), Paphos (luxury villas with views), Ayia Napa/Protaras (villas by the sea)
Market forecasts: summary
If the Cyprus real estate market was volatile in 2013-2020, it is now experiencing a phase of predictable, moderate growth. Experts expect an annual price increase of 3-7% in the next 2-3 years.
Key drivers:
● Joining the Schengen area;(expected in 2026-2027) will increase the liquidity of real estate and demand from foreigners, for whom a Cypriot residence permit will begin to give the right to free movement in Europe.
● Shortage of quality housingin coastal areas, limited supply will support prices even with fluctuations in demand.
● Stable demand from immigrants and investors Cyprus remains attractive due to low taxes, security and European quality of life.
Confirmation of the sustainability of demand - fresh data from April 2026, when the number of transactions reached 1,611, beating the previous April record of 2007 (1,556 transactions). At the same time, unlike the boom of 2007, the current growth looks more balanced: it relies not only on foreign capital, but also on the activity of local buyers, who provide about 60% of transactions.
The market is finally moving away from the speculative model. Major developers are starting to implement large-scale projects that were postponed in 2024-2025. At the same time, "quick money" is not worth waiting for. Profitability is generated through long-term ownership and lease.
Cyprus remains one of the most interesting real estate markets in Europe. The key trend is the transition from speculative investments to an asset ownership strategy with clear returns and a high quality of life, summarizes Victoria Yatsyuta.
Thank you for your help in preparing the material:
Anastasia Yanni, CEO Cyprus Sotheby's International Realty
Victoria Yatsyuta, manager MySpace Real Estate
Sources:
Insights 2025 Analytical Report (Cyprus Sotheby's International Realty)
"April 2026 turned out to be a record high for the Cyprus housing market"
Is it easyShould I move and live comfortably in Cyprus in 2025?»
"Mortgages for foreigners in different countries"
«Cyprus real Estate market. The results of 2024
"Paphos overtook Limassol in luxury housing prices"
"The turnover of real estate transactions in Cyprus exceeded 4.7 billion euros in 2025"
"What is the most sought-after segment of real estate in Cyprus, the study showed"
"The turnover of real estate transactions in Cyprus reached a record in 2025"
«Cyprus real Estate market. Results of 2025
"Britons, Israelis and Russians top the list of foreign home buyers in Cyprus"
"Cyprus real estate market attracted a record number of foreigners in 2025"
