Real Estate Cyprus

Both EU and non-EU nationals may purchase real estate, but restrictions apply. EU citizens face no limitations. Non-EU buyers require approval from the Council of Ministers for first property purchases (typically granted for residential units), with a maximum allowance of one dwelling (up to 4,014m² land). Non-EU buyers face restrictions near military zones and coastal protection areas. Companies registered in Cyprus (including those owned by non-EU investors) may acquire property without restrictions, making this a common investment pathway.

Cyprus exhibits significant regional price variations influenced by location and property type. Limassol commands premium rates with seaside apartments ranging from €4,500 to €12,000 per square meter and villas exceeding €1.2 million. Paphos offers tourist-centered value with coastal residences between €2,200-5,500/m² and villas from €300,000 to €800,000. Larnaca presents emerging opportunities at €2,000-4,000/m² for urban apartments and €400,000-700,000 for beachfront villas. Nicosia maintains stable urban pricing of €1,800-3,500/m² with limited luxury inventory, while the Troodos Mountains feature seasonal homes from €150,000 to €500,000. Resale properties typically transact at 20-30% discounts versus new developments.

Cyprus imposes a tiered stamp duty starting at 0.15% for values up to €170,000 and 0.20% above this threshold. Transfer fees scale progressively from 3% to 8% for properties exceeding €85,000 in value. VAT applies at a preferential 5% rate for primary residences under 130m², while luxury and secondary homes incur 19%. Cyprus eliminated annual property taxes in 2017, replacing them with nominal municipal waste fees. Capital gains tax stands at 20% but exempts primary residences held over five years. The country abolished inheritance tax in 2000. Rental income faces progressive taxation from 0% to 35% after a €19,500 annual exemption.

Non-EU investors qualify for Cyprus Permanent Residency by purchasing residential property valued at €300,000 minimum, either as a single unit or portfolio meeting this threshold. Applicants must demonstrate €50,000 in annual stable income from abroad, provide clean criminal records, and hold valid health insurance. The purchased property must be maintained indefinitely without sale. Processing typically requires two to four months. Successful applicants receive lifelong renewable residency permitting Schengen access, without mandatory physical stay requirements though biannual visits are recommended. Commercial properties alone don't qualify but may combine with residential assets to meet the investment minimum.