Buying property in Cyprus is an attractive prospect for many, whether for investment, relocation, or a holiday home. The island offers a warm Mediterranean climate, an excellent quality of life, and a stable real estate market. As a full member of the EU, Cyprus follows English common law, ensuring a transparent and secure legal framework for property transactions.
However, purchasing property requires careful planning and due diligence. Many buyers worry about avoiding bad investments, dealing with unregulated developers, and ensuring a smooth legal process. Ensuring you work with vetted professionals and reputable developers is crucial to safeguarding your investment. Our Cyprus Real Estate Investment Services
Understanding the Cyprus Property Market The Cypriot real estate market has seen steady growth, driven by foreign investment, tourism, and expat relocations. While Limassol remains the most expensive city, other regions like Paphos, Larnaca, and Nicosia offer a variety of properties at different price points.
Limassol Limassol is the business centre of Cyprus, attracting a diverse range of buyers, including entrepreneurs, families, digital nomads, investors, and high-net-worth individuals. The city is a cosmopolitan hub undergoing rapid development, featuring strong infrastructure projects, luxury resorts, and extensive business opportunities. Limassol is particularly attractive to investors looking for capital appreciation and both short-term rental income from holidaymakers, as well as long-term rental income from the large influx of expats and foreigners relocating to the island. The median property price in Limassol stands at €660,000, reflecting the high demand in this dynamic and growing market.
Nicosia As the capital of Cyprus, Nicosia is the administrative centre of the island, housing the government apparatus and key institutions. While it lacks a coastline, the nearest seaside destinations, such as Larnaca and Ayia Napa, are accessible within a 45- to 55-minute drive.
Nicosia has been experiencing rapid suburban development, offering modern and affordable housing options. The city is particularly appealing to investors seeking long-term rental income from local tenants, including professionals, students, and expatriates. There is high demand for rental properties, especially near universities, hospitals, and business districts. Both rental and purchase opportunities in these areas are increasingly attractive. The median property price in Nicosia is €350,000, making it a practical and cost-effective choice.
Paphos Paphos, located on the southwest coast of Cyprus, is one of the island’s most popular tourist destinations. Known for its rich history and stunning natural beauty, Paphos is home to ancient landmarks such as the Tombs of the Kings and the House of Dionysus, as well as scenic spots like Aphrodite’s Rock and the Akamas Peninsula. The city was also named the European Capital of Culture in 2017, further enhancing its appeal. Additionally, Paphos is home to the second-largest airport in Cyprus, making it easily accessible for international visitors and investors.
Paphos is an ideal choice for investors looking to obtain residency through property investment. The city has a large expatriate community, primarily from the UK and other European countries, who are drawn to its relaxed and friendly atmosphere. It is particularly popular among retirees and second-home buyers seeking a slower pace of life with excellent amenities. Paphos offers a diverse range of property options, from affordable apartments and townhouses to luxurious villas and golf resort residences. The median property price in Paphos is €567,000, making it an attractive location for both lifestyle buyers and investors.
Larnaca Larnaca is primarily a low-cost and affordable holiday destination, lagging behind other districts in development and aesthetic appeal. However, the city is seeing an increase in investment and development, with numerous new projects underway. It remains the most affordable location to invest in Cyprus, making it ideal for investors looking for a lower market entry point.
Larnaca is particularly attractive for those focusing on short-term holiday rentals, as the demand for vacation accommodations continues to grow. Additionally, Larnaca is home to the largest airport in Cyprus, bringing in millions of tourists every year, further driving demand for rental properties. The median property price in Larnaca is €310,500, providing good value for money.
Famagusta (Ayia Napa) Famagusta is a district in the east of Cyprus that includes several towns and villages, such as Ayia Napa, Protaras, Paralimni, and Deryneia. Although some areas remain politically sensitive, the region continues to attract interest from investors and expats. Known for its sandy beaches, crystal-clear waters, and lively entertainment options, Famagusta is a prime destination for tourists and investors alike. The district is also home to some of Cyprus’s most significant historical sites, including the Venetian Walls and Othello Castle.
Famagusta is ideal for investors looking for growth potential and value for money. Property prices in this district are lower compared to other regions in Cyprus, but demand is steadily increasing from both local and international buyers. The combination of affordability and strong rental demand makes Famagusta a compelling choice for those seeking coastal properties with investment potential. The median property price in Famagusta is €455,000, providing an accessible entry point for those looking to benefit from the region’s rising popularity.
Key Considerations Before You Buy Define Your Purpose Before purchasing property in Cyprus, you must define your purpose. Are you buying a primary residence, a holiday home, or an investment property? If it’s an investment, will you focus on long-term rental yields or short-term vacation rentals? These factors will determine the type of property best suited for you. A primary residence may require considerations such as proximity to schools and work, while an investment property should be in an area with high rental demand.
Legal Status of the Property Another crucial aspect is the legal status of the property. Always check whether the property has a valid title deed. If a property does not have a title deed, it can pose significant risks. Some developments in Cyprus still do not have separate title deeds, making it harder to sell or transfer ownership in the future. Conducting due diligence with a lawyer can help ensure there are no outstanding debts, legal disputes, or building violations attached to the property.
Can Foreigners Buy Property in Cyprus? Foreign buyers should also be aware of the legal requirements. EU citizens face no restrictions when buying property. However, non-EU citizens need to obtain permission from the Council of Ministers, and the processing time varies by location.
As of January 2025, approval times for purchasing property in Limassol typically take 30-45 days, while in Paphos, the process can take 4-5 months. In Larnaca, Nicosia, and Famagusta, the expected waiting period ranges from 1-2 months. This approval is generally granted without issue, but it is essential to factor the processing time into your purchase timeline if you are a non-EU buyer.
Professional Legal Help is Essential Working with the right professionals is essential. Hiring an independent lawyer (not one recommended by the seller or developer) will help protect your interests and ensure a smooth property acquisition process. A knowledgeable lawyer can assist in evaluating the estate agent appointment contract, conducting due diligence on the property, identifying potential risks, and negotiating the terms of the Sale Agreement without undue pressure from other parties.
A licensed real estate agent can also assist in finding properties, but it’s vital to ensure they are reputable and independent from developers to avoid conflicts of interest. Additionally, since the title of 'developer' is not regulated in Cyprus, it is crucial to have both legal assistance and access to highly reputable property developers to mitigate risks. Our vetted network of trusted developers ensures you work only with reputable professionals. Learn more about our Cyprus Real Estate Investment Services for exclusive access to high-quality developments and expert guidance
The Step-by-Step Process to Buying Property in Cyprus Step 1: Research and Choose a Location The first step in buying property is selecting a suitable location. Consider factors such as proximity to work, schools, healthcare facilities, and lifestyle amenities. If you are purchasing for investment purposes, research rental demand and potential yields in different areas.
Step 2: Set a Budget & Secure Financing Before making any commitments, determine your budget, including the purchase price and additional costs such as legal fees, taxes, and maintenance expenses. If you need financing, Cypriot banks offer mortgage options to both residents and non-residents, though proof of stable income is required.
Step 3: Find a Trusted Real Estate Agent and Lawyer Choosing the right professionals will make the entire process smoother. A real estate agent can help you find properties, but they should be licensed and independent. A lawyer will ensure that all legal aspects are handled correctly, including contract negotiations and due diligence. Since property development in Cyprus is not a regulated profession, working with a reputable developer is crucial to avoid potential risks.
Learn more about our Cyprus Real Estate Investment Services to access trusted developers and expert guidance.
Step 4: Conduct Due Diligence & Property Inspection Due diligence is one of the most important steps in buying property. A thorough legal and structural check should be carried out before making any financial commitments. Ensure there are no outstanding debts, mortgages, or legal disputes attached to the property. Also, confirm that all planning and construction permits are in place.
It is highly recommended that due diligence be completed prior to signing the contract. If the property does not yet have separate title deeds, your lawyer can contact the relevant authorities to verify that all necessary planning and construction permits are in order. If the seller is a company, your lawyer can also conduct a search at the Registrar of Companies to ensure there are no underlying financial or legal issues affecting the sale.
Step 5: Reserve the Property Once you’ve chosen a property, you will be required to pay a reservation fee, which is typically between €5,000 and €10,000, depending on the property price. This payment serves as an offer to acquire the property at the agreed price, and in return, the seller takes the property off the market for a specified period, usually 30-45 days from the signing of the reservation agreement.
The reservation fee is generally held by either the estate agent or the seller’s lawyer and is later credited toward the purchase price upon signing the Sale Agreement. It is essential to ensure that the reservation agreement clearly outlines the terms and conditions, including the handling of the fee in case due diligence uncovers any issues.
Step 6: Negotiate & Sign the Sale Agreement The Sale Agreement should clearly outline the purchase price, deposit amount, payment terms, and any specific conditions agreed upon. Negotiating the terms and conditions of the Sale Agreement is crucial to protecting both the buyer’s and the seller’s interests. Important provisions should be in place to regulate clauses for the purchase price, payment structure, deposit requirements, completion dates, and any specific restrictions, obligations, covenants, or contingencies.
It is essential to register the contract with the Land Registry within six months of signing to secure your ownership rights, something your lawyer will assist you with.
Step 7: Obtain Council of Ministers Approval (For Non-EU Buyers) If you are a non-EU buyer, you must apply for Council of Ministers approval. The process takes between one to five months, depending on the location. The processing time varies depending on the location, as mentioned above, so it is important to factor this into your purchase timeline. This step is not a precondition for taking possession of the property but is necessary for the final transfer of ownership.
Step 8: Pay Fees & Obtain Title Deeds To complete the property transfer process, you must pay transfer fees, which range between 1.5% and 4% for resale properties. If you purchased a newly built property and paid VAT, no transfer fees apply.
After registering the contract of sale with the Department of Lands and Surveys, the buyer receives approval from the Council of Ministers (for non-EU buyers) to transfer the Title Deed. Once the approval is granted, the buyer must revisit the Land Department, settle any outstanding taxes including Immovable Property Tax, Capital Gains Tax, Sewerage Board Tax, and local municipal taxes, and then officially receive the Title Deed.
Additionally, during the transfer process, the buyer is obligated to pay Property Transfer Fees, which function similarly to the UK’s Stamp Duty Land Tax (SDLT). These fees are calculated based on the assessed market value of the property at the time of sale. If the property is purchased in joint or multiple names, the transfer fees are reduced, as the purchase value is divided among the co-owners. Buyers can estimate the approximate Property Transfer Fee using the Department of Lands and Surveys online tool.
Step 9: Finalise Utilities & Move In Once the property is legally transferred to your name, you’ll need to set up utilities such as electricity, water, and internet. Some providers may require a deposit for first-time users.
Costs & Taxes of Buying Property in Cyprus When purchasing property in Cyprus, it is important to account for both one-time costs associated with the transaction and ongoing taxes and maintenance expenses. Below is a breakdown of the key costs and taxes buyers should expect.
One-Time Costs Property Purchase Price : The agreed-upon price of the property.Stamp Duty : Payable on the property purchase agreement at a rate of 0.15% on the first €170,000 and 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 now applies only to the first 130 sq m of a primary residence, provided the application for planning permission was submitted before 31 October 2023 and meets the following conditions:The property value is up to €350,000 The total transaction value does not exceed €475,000 The total constructed internal area does not exceed 190 sq m Property Transfer Fees : Ranges between 1.5% and 4%, based on the assessed value of the property. If VAT has already been paid on the property, no transfer fees apply. If the property is purchased in joint names, the tax burden is split, reducing the rate per owner. Legal Fees : Typically around 1% of the property value, c overing legal services such as contract review and due diligence. Surveyor’s Fees : Optional but advisable to assess the property’s structural condition, usually costing between €500 and €1,500.Ongoing Costs & Taxes Municipal & Local Property Taxes – Paid annually to the local municipality, usually ranging from €85 to €256 per year depending on the property size and location.Sewerage Tax : A small annual levy calculated at 0.03% to 0.035% of the property’s 1980 valuation.Communal Fees : If purchasing in a gated complex or apartment building, expect to pay shared maintenance fees for common areas, typically between €30 and €100 per month.Income Tax on Rental Income : Taxation on rental income in Cyprus depends on several factors, including whether the owner is an individual or a corporation and whether the property is used for short-term or long-term rentals.Capital Gains Tax : Payable at 20% on net gains when selling a property. However, exemptions apply for properties held long-term or used as a primary residence under specific conditions.By understanding these costs upfront, buyers can make informed financial decisions and avoid unexpected expenses. Proper tax planning and legal advice are essential for ensuring compliance with Cypriot regulations.
Read Also: Rental Income Tax in Cyprus: Complete Guide for 2025
Final Advice Buying property in Cyprus can be a rewarding investment, offering lifestyle benefits, financial returns, and residency opportunities. However, success in the process requires careful planning, a clear understanding of legal procedures, and working with experienced professionals who can guide you through each step.
From choosing the right location to securing financing, conducting due diligence, and handling legal formalities, every stage of the process requires attention to detail. Ensuring that you work with independent legal advisors and reputable developers is crucial to protecting your investment and avoiding unnecessary risks.
If you’re looking for a seamless and secure property purchase, we can connect you with vetted property developers and trusted legal experts to guide you through the process. Learn more about our Cyprus Real Estate Investment Services
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