Content
- Benefits of investing in commercial real estate
- Market data: profitability and growth
- How income from commercial real estate works
- Top property types: offices, apart-hotels, warehouses
- Purchase options for foreigners: as an individual or through a Cyprus LTD
- Step-by-step guide to the purchase process
- Legal services by Feod Group
Investing in commercial real estate in Cyprus is a profitable, practical, and legally protected decision with high income potential. This type of active asset can generate passive income, serve as a base for your own business, or provide a legal structure for Cyprus permanent residency (PR) and tax residency. Most importantly, such investments can be arranged entirely remotely.
Since 2007, the lawyers and investment consultants at Feod Group have been providing turnkey support for commercial real estate transactions in Cyprus — from due diligence and registration of the transaction to lease management, company setup, permanent residency, and tax optimization.
Why Invest in Commercial Real Estate in Cyprus?
- Reliable market within the EU, transactions follow English law
- 12.5% corporate tax rate and Non-Dom tax benefits (0% on dividends)
- Growing demand for office, retail, and residential rental spaces
- Purchases through Cyprus LTD allow tax optimization
- Right to apply for Cyprus PR for investments from €300,000
Current Commercial Real Estate Market Data (2025)
According to RICS Cyprus and KPMG:
| Property Type | Average Yield | Annual Price Growth | Key Demand Areas |
| Office Space | 5–8% | +3.5% | Limassol, Larnaca, Nicosia |
| Retail (Shops) | 5–7% | +2% | City centers, tourist zones |
| Tourist Apart-Hotels | 6–10% | +4% | Paphos, Protaras, Larnaca |
| Warehouses & Logistics | 4–7% | +2% | Larnaca suburbs, Nicosia |
How Commercial Real Estate in Cyprus Generates Income
Cyprus commercial real estate offers viable income strategies, whether you are a private investor or a business owner. You can choose a strategy aligned with your goals, budget, and level of involvement.
- Rental Income: Leasing is the most popular and predictable format. Commercial spaces (offices, retail, storage, tourist apartments) yield 5–10% annually. For passive income seekers, this is often the optimal choice.
- Use for Own Business: An investor can register a company in Cyprus and use the property for business operations — as an office, restaurant, bakery, showroom, education center, etc. This transforms the asset into a functioning part of the business. This strategy is especially relevant for IT companies and international businesses relocating staff or opening EU branches. Buying office space under construction is popular: you save up to 30% compared to completed projects, tailor it to your needs, and lock in the price before market growth.
- Resale: The “buy & flip” model remains relevant, especially in areas with growing infrastructure (e.g. Larnaca, Paphos, Nicosia). Many investors buy properties at discounted prices (e.g. during construction or needing renovation), improve them, and resell at a profit. Skilled renovation can increase value by 15–20%.
If you want your investment to work for you — generating income, protecting capital, and solving business needs — commercial real estate in Cyprus offers all these opportunities, and Feod Group can help you realize your specific scenario.
Top Commercial Properties in Cyprus
The commercial real estate market in Cyprus continues to grow and diversify. Investor interest is driven by new development, entrepreneur migration, and increasing tourist flow. Below are the most liquid and promising asset types.
Offices and Business Centers
Many companies are relocating staff and offices to Cyprus for its tax benefits, quality infrastructure, and access to EU residency and high living standards. However, the influx of foreign companies has created a shortage of modern office spaces. High demand is seen in Limassol, Larnaca, and Nicosia — hubs of IT and professional migration.
Average office prices (EUR/m²):
Limassol: €4,500–6,500
Nicosia: €3,500–4,500
Larnaca: €2,500–4,000
Paphos: €2,000–2,500
Hotels and Short-Term Rentals
Cyprus enjoys a longer tourist season than most of Europe, providing consistent rental income. Properly managed apart-hotels can yield up to 10% annually. Rental income can be structured through a Cyprus LTD with Non-Dom benefits and optimized corporate tax.
Read also: How to Buy a Hotel in Cyprus
Shops and Street Retail
Small ground-floor retail spaces remain in demand among cafes, boutiques, salons, agencies, and franchise chains entering the Cyprus market. Average yield is 5–7% annually. These properties are easy to rent due to consistent tenant flow and can be purchased either as an individual or via a company.
Warehouses and Logistics
With the growth of e-commerce and logistics infrastructure, warehouses attract investors working with large retailers and distributors. Yields range from 4–7%, particularly with long-term leases. These assets require zoning and permits.
Rules for Purchasing Commercial Real Estate in Cyprus: Individual or Company?
Foreign citizens (including non-EU residents) are allowed to buy commercial real estate in Cyprus if certain legal requirements are met. Depending on the purpose and structure, the asset can be owned by an individual or a Cyprus company.
As a Private Individual
Non-EU citizens can purchase one office (max. 250 m²) or one shop (max. 100 m²) plus one residential property. Ministerial Council approval is required — a standard process for foreigners. This option is ideal for personal use or for applying for Cyprus PR through property investment.
Buying commercial real estate through a Cyprus company (Cyprus LTD)
If the property is purchased for business, rent, resale or other commercial activities, it is wiser to register it in the name of a legal entity. Buying commercial real estate through a Cyprus company (Cyprus LTD) allows you to avoid restrictions on the number of properties, reduce the taxable base due to expenses, and also legally conduct business in the EU. This is the most popular form of ownership among foreign investors seeking a structured and optimized asset management model.
How to Invest in Commercial Real Estate in Cyprus
Step-by-step guide:
- Legal consultation on ownership structure: individual, LTD, or trust
- Legal due diligence of the property: title deed, tenants, audit, technical inspection
- Opening a bank account and funds transfer with source verification
- Signing contracts: purchase agreement, lease obligations, contract review
- Land Registry registration, financial settlements, tax payments
- Post-sale services: leasing, property management, accounting
Legal support when purchasing commercial real estate in Cyprus is not just recommended — it’s essential to safeguard your interests and ensure the successful development of your investment project on this beautiful Mediterranean island.
Legal Services for Commercial Property Purchases in Cyprus
Feod Group is an international law firm with an office in Larnaca and over 17 years of experience in Cyprus. Since 2007, we have provided comprehensive support to our clients, including:
- Due diligence of commercial real estate
- Full transaction support: negotiations to registration
- Tax structuring: VAT, Non-Dom regime
- Cyprus company setup, auditing, accounting
- Obtaining permanent residency (PR) through property investment
We offer full turnkey support.
Schedule a consultation at our Larnaca office or online.
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FAQ
It offers stable rental income, potential capital growth, and various investment strategies. Cyprus also provides tax incentives and legal protections.
Yes. Foreigners can buy one office (up to 250 m²) or shop (up to 100 m²), plus one residential unit.
Yes, under the fast-track permanent residency program if the property meets the €300,000+ VAT requirement.
Yes. Foreign investors can buy commercial property in Cyprus fully remotely. Feod Group facilitates such transactions via power of attorney, including account opening, due diligence, and title registration.
Yes. Commercial or residential real estate can be purchased via a Cyprus-based company.
Contact us
For enquiries please fill in the form below. Our consultants will contact you with the details.
Griva Digeni 49, Chrystalla Court 1st Floor Office 11, 6036 Larnaca, Cyprus
11B Lyuteranska St., off. 23, 01024
