Invest in Cyprus

The last decade has been a difficult one for the Cypriot economy, with lots of factors stemming its growth. However, since the global pandemic and the return of tourism, the national output has been growing and so too has the property market.

Over the last three years, house prices have been rising steadily, partly due to increased demand from foreign buyers and low interest rates (compared to UK).

Last year, the average property price in Cyprus was €2,504 (£2,515.31) per m2 and the sale of apartments has grown more so than any other property type.

The below table shows the average property prices per m2 in four regions of Cyprus.

This data has been sourced from Immigrant Invest.

Holiday homes have been increasing in price since 2021, with apartments increasing by 7.77% in 2023 compared to the previous year. Despite the upward trend, the Cypriot property market is much cheaper than other Western European countries.

Properties in the southern regions are more costly than in the capital city, as this part of the island is more popular with holidaymakers and foreign investors.

With rising demand for property throughout Cyprus, there has been an increase in real estate development in the cities of Limassol and Nicosia. These modern developments offer lots of amenities and are popular with foreign investors and businesses seeking rentals for employees.

If you’re buying property in Cyprus, it’s advisable to work with financial and legal experts based there when completing your purchase. English is widely spoken, so this will make your property journey easier to manage.

As a popular holiday destination, it’s no surprise that the rental market tends to peak during the summer holidays. There is a high demand for short-term rental properties in the southern coastal areas of Paphos, Limassol and Aiya Napa.

Nicosia sees more demand for long-term rentals which are often taken up by students or young professionals who want to be close to their place of work.

Below are the average rental yields of various property types in May 2023.

• Apartments 5.37%
• Houses 2.86%
• Holiday Apartments 5.71%
• Holiday Houses 2.71%

This information was correct at the time of publication.

So why should you be investing in Cyprus? Here are some of our top reasons.

Cyprus was once considered a tax haven, and although this is not the case now, the tax laws are still considered lenient here.

Tax incentives include an income tax exemption up to €19,500 and a limit of 35% for income over €60,000. The rules around capital gains and pensions are also less expensive than the UK and other Western European countries. A tax advisor can help you understand the tax rules for non-residents.

If you’re planning to set up a business in Cyprus, the corporate tax rate is lower here than many other European countries such as Spain, France, Italy, and the UK.

If constant sunshine, affordable property prices and a delicious Mediterranean diet aren’t enough to convince you, then the lower cost of living is just another bonus of this island. It’s estimated that the cost of living in Cyprus is 10.4% lower than the UK with rental costs approximately 24% lower.

Regarded as one of the healthiest countries in Europe, the average life expectancy is 81.39 years, which is higher than the UK and USA.

For a small island, the healthcare system is regarded as excellent and on par with Western European countries. Private healthcare is affordable and available through insurance.

If you’re planning to relocate to Cyprus permanently then the Golden Visa program is worth researching. In simple terms, the Golden Visa allows non-EU citizens to live in Cyprus without any limitations, with no expiry date.

The quickest way to obtain the Golden Visa is by making an investment of at least €300,000 into residential property, commercial property, a Cyprus-based company or into a Cyprus Collective Organisation.

Along with this investment, foreign nationals must show they have adequate income to qualify for the Visa program.

As part of the EU, Cyprus is a prime location for people seeking to relocate abroad, making the transition much easier due to the single currency and travel options. This, coupled with the general lifestyle, healthcare and lower cost of living offers a great quality of life.

Cyprus is a family friendly location due to the modern infrastructure, welcoming communities, and education system.

We work in partnership with a number of agencies located in Cyprus.

Whether you want a second home, an investment property, a retirement property, or you’re planning to relocate, our iad Overseas property consultants can help you in your property search.