Cyprus Real Estate for Foreign Investors – 2025 Buyer’s Guide

Cyprus Real Estate for Foreign Investors

Key Takeaways

– Foreign investors can legally purchase property in Cyprus with government approval.
– EU buyers enjoy full ownership rights, while non-EU buyers are generally limited to two properties.
– Properties over €300,000 may qualify for the Cyprus Permanent Residency Program.
– Taxes are favorable: no inheritance tax, 12.5% corporate tax, and reduced VAT on main residences.
– Popular property choices: apartments, coastal villas, branded residences, and commercial real estate.
– The purchase process is clear: reservation → approval → contract → payment → title deeds.
– Yields: 4–7% on long-term rentals, 6–10% on short-term holiday rentals.2.Introduction

Cyprus is one of the most attractive Mediterranean destinations for foreign property investors. The legal framework, competitive taxes, and lifestyle appeal make it a popular choice worldwide.

Can Foreigners Buy Property in Cyprus?

EU citizens can buy unlimited properties. Non-EU citizens can buy up to two properties with approval from the Council of Ministers.

Why Foreign Investors Choose Cyprus

EU membership, favorable taxes, residency options, strategic location, and rental demand make Cyprus appealing to investors.

Step-by-Step Purchase Process for Foreign Investors

1. Reservation Agreement → 2. Legal Checks → 3. Approval (non-EU) → 4. Sale & Purchase Agreement → 5. Payment → 6. Title Deeds Transfer.

Property Types Foreigners Commonly Buy

Apartments, villas, branded residences, and commercial properties are most popular among foreign buyers.

Taxes and Fees for Foreign Buyers

Transfer fees, stamp duty, VAT, capital gains tax, corporate tax (12.5%), and no inheritance tax apply.

Residency Options for Foreign Buyers

Permanent Residency Program (min €300k new build), Temporary Residency (Pink Slip), and Citizenship through long-term residency.

Comparison Table: EU vs Non-EU Buyers

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Rental Yields for Foreign Investors

Long-term rentals yield 4–7%, short-term 6–10%, luxury properties yield less but appreciate strongly.

Risks to Consider

Regulatory delays, market cycles, liquidity challenges, and title deed issues are main risks.

Future Outlook for Foreign Investors

Vision 2030 supports foreign investment, luxury housing, marinas, and lifestyle hubs, with demand expected to remain strong.

Conclusion

Cyprus offers a straightforward path to ownership, residency, and long-term capital growth for foreign buyers.

Frequently Asked Questions (FAQs)

Q: Can non-EU citizens buy property in Cyprus?

A: Yes. Non-EU buyers can purchase up to two properties with government approval.

Q: How much do I need to invest for Permanent Residency?

A: A minimum of €300,000 in new-build property is required.

Q: Do EU citizens face restrictions when buying?

A: No. EU citizens can buy unlimited properties without approval.

Q: What taxes apply to foreign property buyers?

A: Transfer fees, stamp duty, VAT on new builds, and capital gains tax on resale.

Q: How long does the purchase process take?

A: Typically 1–3 months for approval (non-EU), with ownership secured upon title deed transfer.