Investing in and Purchasing Real Estate in Cyprus in 2025

Investing in real estate in Cyprus in 2025 is an attractive option for investors, combining financial benefits, immigration opportunities, and comfort for the whole family.

This article explores current statistical data and trends shaping the Cypriot real estate market and provides valuable recommendations for potential investors.

Overview of the Cyprus Real Estate Market

The Cyprus real estate market demonstrates high investment appeal and continues its steady growth, confirming its reliability and promising prospects. Early 2025 has already shown impressive results: in January, the number of property transactions increased by 21% compared to January 2024.

In 2024, a total of 15,797 transactions were registered in Cyprus, representing a 17.8% increase compared to 2022 (13,409 transactions). By mid-2024, the transaction volume reached 2 billion euros, highlighting strong demand for residential and commercial properties. Demand continues to outstrip supply, contributing to further price increases and higher rental yields.

Long-term forecasts also remain positive. According to Statista, the Cyprus real estate market is expected to grow at an average annual rate of 3.51%, reaching a volume of 141.2 billion USD by 2029. This positions Cyprus as one of the most promising destinations for long-term investments in Europe.

An additional advantage is Cyprus’s favorable tax conditions. The country has no annual property tax, moderate rental income tax rates, and low maintenance costs.

Key factors driving market growth in 2025:

✅ Development of infrastructure and new residential complexes.
✅ Favorable investment climate and economic stability.
✅ Active influx of foreign investors and entrepreneurs.

Investment Appeal of Cyprus Real Estate in 2025

1. Economic Indicators
   International agencies Moody’s and Fitch have assigned Cyprus a high rating of “A-“, confirming minimal default risks and a favorable investment climate. This high rating serves as a green light for foreign investments.
2. Financial Stability
   In 2024, Cyprus recorded a budget surplus of 3.9% of GDP and a primary surplus of 5.3%, the highest in the EU. Fitch forecasts that Cyprus’s financial system will remain stable, maintaining a surplus of 2.9% of GDP in 2025-2026. For investors, this means economic predictability and no fiscal risks.
3. Annual Growth in Property Prices
   In 2024, property prices in Cyprus rose by 5.6%, with the average cost reaching 2,500 euros/m². At the beginning of 2025, the growth trend continues with a +2.1% increase compared to December 2024. In some regions (Limassol, Nicosia, Larnaca), the rise reached 3–4%.
4. High Rental Demand
   The relocation of companies to Cyprus boosts the influx of professionals and their families, driving demand for long-term rentals. Additionally, Cyprus enjoys the longest tourist season in Europe: in 2024, the island welcomed over 4 million tourists (+5.1% compared to 2023), ensuring year-round occupancy of rental properties.
5. Immigration Benefits
   An added incentive is the Cyprus Permanent Residency program through investment. This not only offers a profitable investment opportunity but also provides a reliable option for securing an alternative place of residence and creating a “Plan B” for yourself and your family.

Investment Opportunities in Cyprus Real Estate

The Cyprus real estate market offers investors a wide range of strategies, from purchasing ready-to-use properties and commercial real estate to investing in early-stage construction projects.

1.Purchase of Ready Residential Property

Buying completed villas, townhouses, and apartments in Cyprus is an ideal solution for those who want to immediately use the property for living, vacationing, or rental purposes. Without the need to wait for construction to finish, you acquire a ready asset that can start generating income right away.

Many developers offer fully furnished properties with appliances, significantly reducing setup costs and allowing rental income immediately after purchase. For example, you can even buy a ready-made villa with a landscaped garden and enjoy the comfort without waiting for the greenery to grow.

Moreover, construction trends in Cyprus cater to buyers’ demands, with modern residential complexes offering well-developed infrastructure: swimming pools, gyms, covered parking, and security. These features create comfortable living conditions and increase the property’s liquidity, making it easy to rent out and more profitable to resell later.

For those looking to buy property for rental income, the highest demand is in Limassol, Larnaca, and Paphos, where tourist and business infrastructures are rapidly developing. These areas are popular for both long-term rentals (to expats and locals) and short-term rentals to tourists.

2. Commercial Real Estate

In 2024, transaction volumes in this segment increased by 12%, and further growth is expected in 2025 due to the influx of international companies and urban infrastructure development.

The most attractive investment opportunities are in office buildings, hotel complexes, restaurants, and shopping centers. Particularly promising are areas in Larnaca, undergoing extensive urban renewal and business space expansion, central districts of Limassol, known for attracting tourists and international businesses, and Nicosia, the capital of Cyprus.

Commercial real estate in Cyprus provides several income streams:

• Rental Income – A stable source of profit with yields of 5–8% per year, depending on location and property type.
• Resale After Modernization – Renovations or reconstructions can increase property values by 15–20%.
• Office Purchase for Own Business – This reduces rental expenses, and buying during the construction phase allows for savings of up to 30% off the market price. This approach is especially popular among IT companies and international businesses looking to reduce costs and relocate employees to Cyprus.

More information: Commercial Property in Cyprus

3. Investing in Early-Stage Construction

Investing in properties at the construction stage is one of the most profitable investment methods in Cyprus. The average value increase from construction start to completion is 20–30%, making this segment appealing for long-term investors.

A key advantage is the ability to tailor the project to individual needs. During construction, buyers can modify the layout, add rooms, create storage spaces or walk-in closets, and for private homes or villas, even select the landscaping type for the property.

The highest price growth potential is observed in emerging areas of Larnaca and Limassol, where large-scale infrastructure projects are underway. In 2025, the government continues to invest in modernizing transport hubs, creating new residential districts, and expanding tourist zones, providing additional opportunities for property value appreciation.

An added benefit of investing in this segment is the flexibility in financial terms. Many developers offer installment payment plans, reducing initial costs and increasing investment accessibility.

How We Help Investors

Whether purchasing property for personal residence or acquiring a commercial asset for income generation, every transaction requires detailed legal due diligence and support.

Our services include:

• Consultations on selecting an investment strategy;
• Legal verification of property titles;
• Negotiations with developers;
• Full transaction support – from contract signing to property registration;
• Assistance in obtaining permanent residence for property owners.

Popular Regions in Cyprus for Real Estate Investment

The most popular regions for real estate investment in Cyprus include Limassol, Larnaca, Nicosia, and Paphos. These cities and their surrounding areas dominate the market, accounting for over 80% of all property transactions on the island.

Nicosia

Nicosia, the capital of Cyprus, is centrally located on the island. Unlike coastal cities, it is not focused on tourism but is a thriving business hub. It hosts major government institutions, international company offices, universities, and banks. The real estate market in Nicosia is primarily geared towards local residents and professionals working in the city.
Ideal for: Investors targeting commercial real estate and long-term rentals.
Average property prices:

• Residential: €2,500–€3,500/m²
• Commercial: €3,500–€5,500/m² (central areas)
  Transaction statistics: In 2024, 3,527 transactions were recorded, up 13.6% compared to 2023 (3,105 transactions).

Limassol

Limassol is the most expensive city in Cyprus. It is a financial and IT hub that attracts international companies, driving high demand for both commercial and residential real estate. The city features luxury residential complexes, international schools, yacht clubs, and corporate offices. Limassol also leads in high-end property transactions: in 2024, 8 out of 10 high-value deals on the island were in Limassol, totaling €176.8 million.
Ideal for: Rentals, business investments, and urban living.
Average property prices:

• Residential: €4,500–€6,000/m² (in the center and coastal areas: €8,000–€10,000/m²)
• Commercial: €6,000–€8,500/m²
  Transaction statistics: Limassol remains the leader in transaction volume with 5,032 deals in 2024 (-1.2% compared to 2023).

Larnaca

Larnaca is rapidly developing and becoming increasingly attractive for investors. The city is experiencing a boom in modern residential complexes, business centers, and the largest marina on the island. Its strategic location near Cyprus’ largest international airport enhances its infrastructure and logistics appeal. Many entrepreneurs and families are relocating from Limassol to Larnaca due to more affordable housing, while the short 60 km distance between the cities allows easy commuting.
Ideal for: Investment, rental income, and permanent residence.
Average property prices:

• Residential: €3,000–€5,000/m²
• Commercial: €4,000–€5,500/m²
  Transaction statistics: In 2024, 3,356 properties were sold, a 5.4% increase compared to 2023 (3,185 deals). Key growth drivers: affordable prices, improved infrastructure, and new coastal projects.

Paphos

Paphos is known for its tourism and well-developed leisure infrastructure, including beautiful beaches, historical landmarks, and numerous resort complexes. It is considered one of the most eco-friendly regions on the island. Due to its thriving tourism sector, short-term rentals are highly profitable. Most transactions in Paphos involve buying villas and apartments for rental income.
Ideal for: Investment in holiday rentals and comfortable living.
Average property prices:

• Residential: €2,300–€3,500/m²
• Commercial: €3,000–€4,800/m²
  Transaction statistics: In 2024, 3,107 transactions were recorded, down 7.9% from 2023 (3,373 transactions).

Ayia Napa, Protaras, and Paralimni

These towns, located in the Famagusta region, are famous for having the best beaches in Cyprus and a well-developed tourism infrastructure. They offer numerous hotels, villas, and apartments catering to the tourist market. Seasonal rentals are the primary source of income for investors in this area, with demand significantly exceeding supply during peak tourist season, ensuring high returns.
Ideal for: Investment in holiday rentals and seasonal living.
Average property prices:

• Residential: €1,900–€2,800/m²
• Commercial: €2,500–€3,800/m²
  Transaction statistics: In 2024, 775 transactions were recorded, down 4.6% compared to 2023 (812 deals).

Each region in Cyprus has its own unique characteristics, allowing investors to choose the best option based on their goals – whether for investment, business, or leisure.

Buying Property in Cyprus for Foreigners

Foreign citizens are allowed to purchase property in Cyprus, but a special permit is required. This permission is granted under the Aliens Law, Chapter 109.

After selecting a property and signing the purchase agreement, the buyer’s lawyer submits an application (Form 145) to the Council of Ministers of Cyprus. The application package includes a copy of the passport, the purchase contract, a cadastral plan, and proof of financial solvency.

The purchase permit is a key document that grants the buyer the right to register the property in their name.

The approval process typically takes 1-2 months. In practice, the buyer can use the property after signing the contract but can only register it in their name once the permit is received.

Restrictions on Land and Property Purchases for Foreigners

Non-EU foreign citizens can obtain permission to purchase:

1. A plot of land (not subdivided into separate plots) up to 4,000 m² for building a residential house for personal use. For married couples, the permit is issued jointly.
   Or
2. Up to two units of property at different stages of construction:

• Two residential units (e.g., two houses or two apartments).
• Or one residential unit and one commercial property: an apartment + a shop up to 100 m² or an apartment + an office up to 250 m².

These restrictions apply to married couples collectively.

If a foreign buyer wishes to purchase more property, they can do so through a Cypriot company, which is not subject to these limitations.

Purchasing Property through a Cypriot Company

Registering a company in Cyprus allows the purchase of an unlimited number of properties, including land, commercial, and residential real estate.

Key considerations when buying property through a Cypriot company:

• The company must be registered in Cyprus and conduct real business activities.
• The company director must be a resident of Cyprus.
• The property can be used for personal residence, rental, or commercial purposes.

Registering a company in Cyprus is not only a convenient way to own property but also an effective method for conducting international business due to Cyprus’s favorable tax system. Read more: Company Registration in Cyprus

Property Purchase Process in Cyprus

To buy property in Cyprus, you need to follow these key steps:

1. Selection and Legal Due Diligence

Before purchasing property, a legal due diligence is conducted. Our property lawyer in Cyprus thoroughly checks the seller’s ownership rights, verifies the absence of debts, encumbrances, and liens, and examines all permits and documentation. Legal due diligence in Cyprus is a mandatory step to protect your interests.

2. Reservation of the Property

After completing the legal check, a deposit is made to reserve the property. This secures the agreement between the buyer and seller. The property reservation in Cyprus is accompanied by a reservation agreement, which outlines the key terms of the transaction. This agreement must clearly state the technical specifications of the property and its final cost.

3. Signing the Sale and Purchase Agreement

Once the reservation period ends, the buyer signs the sale and purchase agreement. At this stage, an initial payment is made, usually 30-40% of the property’s value (or another amount agreed upon for the specific property).

4. Registration of the Agreement

Legal support for property purchases in Cyprus includes registering the contract with the Department of Lands and Surveys. At this stage, a stamp duty is also paid, the amount of which depends on the property’s value.

5. Transfer of Title Deed

After the full payment is made, the process of transferring the Title Deed (Certificate of Title Deed) to the buyer’s name begins. For properties under construction, the Title Deed is issued after all construction works are completed, and the developer obtains the necessary documents. In such cases, the buyer can freely use the property, with their rights protected by the registered sale agreement.

Read more: Top 5 Legal Tips for Successfully Buying Property in Cyprus

Remote Property Purchase in Cyprus

Remote property purchasing is becoming increasingly popular among foreign buyers. The process starts with issuing a power of attorney to a Cypriot lawyer. This power of attorney authorizes the lawyer to represent your interests at all stages, from legal due diligence to obtaining the Title Deed.

Property selection can be done remotely through video tours, online presentations, or virtual tours. Once the deal terms are agreed upon, the contract is signed using an electronic signature or sent by mail. This approach is convenient and allows you to buy property in Cyprus from anywhere in the world with minimal effort.

Remote property purchases in Cyprus are especially convenient for investors who do not plan to move immediately but want to take advantage of early investment opportunities or buy for rental income.

Our property lawyers at Feod Group guide clients through every step, ensuring legal compliance and protecting their interests.

Mortgage for Property Purchase in Cyprus

Foreign citizens can obtain a mortgage from Cypriot banks, but the conditions depend on several factors. Here’s what you need to know about mortgages in Cyprus:

• Residence Permit (PR): Banks require proof of legal status in Cyprus to grant a mortgage.
• Financial Capacity: Banks assess if your income level allows you to make monthly payments, usually not exceeding 35% of your total income.
• Financial Stability: You need to provide a bank statement, income certificate, and tax declaration. Banks also check the borrower’s credit history and credit rating.
• Down Payment: A down payment is mandatory, ranging from 30% to 50% of the property value, depending on the type of property (resale or new build) and the bank’s policy.
• Rates and Term: Mortgage rates in Cyprus range from 2.5% to 4.5% per annum. Rates can be fixed or variable. The maximum mortgage term is up to 25 years, but it may be limited by the borrower’s age (typically up to 65 years).

Reasons for Mortgage Rejection in Cyprus

Cypriot banks consider both the financial stability of the borrower and the characteristics of the property. A mortgage may be denied if:

• The property has legal issues, such as lack of permits or ownership disputes.
• The property is unfinished or in poor condition.
• There is no Title Deed (Certificate of Registration).
• There are encumbrances or liens on the property.

Taxes on Property Purchase in Cyprus

Buying and owning property in Cyprus does not involve high costs or hidden tax payments.

Taxes on Property Purchase

• VAT – 19% on the purchase of new property. A reduced VAT rate of 5% is available if the property is used as a primary residence. No VAT is charged on the purchase of resale properties.
• Transfer Fee is applicable only when buying resale property. The rate is progressive, ranging from 3% to 8% depending on the property value. If the transaction is VAT-exempt, a 50% discount on the Transfer Fee applies.
• Stamp Duty is paid by the buyer upon registration of the sale and purchase agreement at a rate of €1.50 per €1,000 of the property value up to €170,860, and €2 per €1,000 for amounts exceeding €170,860. The maximum stamp duty is €20,000.

Property Maintenance Costs in Cyprus

There is no annual property tax in Cyprus, significantly reducing ownership costs.

• Property Insurance is not mandatory but recommended. The cost depends on the coverage type and property size, typically ranging from €200 to €500 per year.
• Service Fees are charged for properties within residential complexes to maintain common areas (pools, gardens, elevators). The average cost varies from €50 to €200 per month.
• Utility Bills include payments for water, electricity, gas, and waste disposal. These costs depend on the property’s size and type.
• Rental Income Tax applies if the property is rented out. Learn more: What are the taxes on rental income in Cyprus?

Legal Services for Property Purchase in Cyprus

Legal support is essential for a safe and successful property purchase. A property lawyer in Cyprus provides comprehensive transaction support, minimizing legal and financial risks.

• Opening Bank Accounts and Tax Advisory: Assistance with setting up bank accounts for property transactions and tax obligation analysis, including VAT, rental income tax, and other fees.
• Legal Due Diligence: Comprehensive verification of the property’s legal status, including checking for encumbrances, debts, and restrictions.
• Review and Negotiation of Contract Terms: Feod Group lawyers thoroughly review all terms of the sale and purchase agreement, including property specifications, materials used, and final cost.
• Obtaining Permission for Foreign Buyers: Preparation and submission of documents to the Council of Ministers.
• Title Deed Registration: Real estate lawyers in Cyprus prepare and submit documents for property registration, officially confirming the client’s ownership rights.
• Company Registration for Property Investment: Structuring asset ownership through a Cypriot company for tax optimization and efficient investment management.
• Support in Obtaining Permanent Residence for Property Owners: Our firm provides complete legal support for acquiring permanent residence (PR) for property buyers.
• Legal and Administrative Support After Purchase: Assistance with moving in, property insurance, property management, renting, or selling.

This comprehensive support allows investors and property owners in Cyprus to manage their assets confidently and use them for long-term residence or generating stable income.

By choosing Feod Group, you receive a full range of legal services to securely and confidently invest in property in Cyprus.

Our office in Larnaca, Cyprus, is open and ready to assist you!