In 2024, Cyprus ranked 12th among the best countries for investment globally. The country offers low tax rates, favourable conditions for business development, and a high standard of living.
By purchasing an apartment or a shop space and renting it out, one can earn between 5% and 10% annually.
Investing in Cyprus real estate can bring not only profit. By investing €300,000, you can obtain a permanent residence permit. Both residential and commercial properties are eligible as investments.
In this article, we collaborate with an expert to explore the most profitable investment opportunities, ranging from apartments to hotels.
Why invest in Cyprus real estate: 9 main points
1. Low taxes on property purchases. The tax rate depends on the type of property: for new builds — up to 19%, for resale properties — from 3% to 8%, depending on the property value. A stamp duty of 0.15% to 0.20% of the property price must also be paid within a month after the deal is closed.
2. Tax benefits for new builds. If an investor is buying residential property in Cyprus for the first time and registers it in their name as an individual, not a company, they can reduce the tax from 19% to 5%. However, this benefit comes with a condition: the investor must keep the property for at least 10 years and cannot rent it out.
3. Residency in a European country. Buyers of property valued at €300,000 or more are eligible for permanent residence in Cyprus. The resident card is issued indefinitely. To maintain residency, there is no need to live in Cyprus — a simply visit to the island once every two years is enough.
4. High liquidity. Data from the last ten years show that real estate prices in Cyprus increase by 0.5% to 1% annually, adjusted for inflation. This ensures that an investor is unlikely to lose money when selling, and may even profit.
5. Rental yield up to 10%. Renting out an apartment in Cyprus in 2024 can generate 7—10% annually. This is one of the highest yields among EU countries.
6. Wide range of properties. Cyprus offers a variety of real estate options, from small apartments to spacious flats and villas. Prices start from €870 per square metre.
7. Simple purchasing process. The Cypriot government reduces bureaucracy for foreign buyers: one simply needs to choose a property, sign a contract, get approval for the deal, and complete the purchase. An experienced lawyer can handle the entire process.
8. Up to 340 sunny days a year. In winter, the average temperature in Cyprus is +13…+15°C, and in summer, it ranges from +28…+33°C. The average water temperature is +22°C, and it doesn’t drop below +17…+19°C in winter, allowing for swimming and water sports year-round.
The island is home to oak, juniper, pine, and maple trees, along with many flowers, ensuring greenery throughout the year. Cyprus’ climate is considered one of the healthiest in the world.
9. Safe and comfortable living. Cyprus is one of the safest countries in the world. Earthquakes are rare — the last major one occurred in 1999, and there are no risks of other natural disasters.
The Insurly portal rated Cyprus 88.6 out of 100 for safety, analysing healthcare, education, environment, and crime rates.
Cyprus real estate market: overview
According to the Cyprus Land Department, the number of real estate transactions in February 2024 increased by 14% compared to February of the previous year. Investors most frequently purchase residential and commercial properties in Limassol and Nicosia.
New builds in Cyprus come in three types. Available for sale are apartments in 3—6 storey buildings, apartments in mini-skyscrapers with 20—30 floors, as well as villas and cottages with private land.
The resale market consists of properties that have had at least one previous owner. This category includes older properties, homes built in the 1970s, and modern developments. Most are low-rise buildings of up to 6 floors, though the 20th century saw the construction of buildings up to 14 floors.
Hotel properties — apartments within hotels and entire complexes with infrastructure. The season in Cyprus lasts almost all year round, and the destination’s popularity is growing.
Investing in a rental property is a profitable decision. You can manage the business yourself or entrust it to one of the development companies in Cyprus that offer such services.
Commercial properties. Most available commercial spaces are on the ground floors of residential complexes, with standalone units being less common. When purchasing such property, there’s no need to run the business yourself — you can simply find a tenant and receive a guaranteed monthly income from their rent payments.
Offices are located in business centres, primarily in Limassol and Nicosia. Since 2022, many IT companies have relocated to Cyprus, bringing their employees, including JetBrains, InDrive, and Gett. Smaller businesses continue to move as well, often in need of office space. This presents another strong investment opportunity.
