The best cities in Cyprus to live in: a professional review

The sunny postcard island has transformed into a stable financial jurisdiction with developed infrastructure, transparent rules for property acquisition and attractive tax conditions for investors. How to use these advantages and buy property in Cyprus without risks, with full transparency and guaranteed income? This question has come to the fore in 2025. Unprecedented investment inflows, favourable regulatory changes and growing demand for new-format housing create unique opportunities. Making the right choices in this new reality requires reliable information, a sound strategy and an understanding of local nuances.

Key areas of focus: where to buy

Property investment in Cyprus is not limited to the capital – the regions offer different formats of yield, payback periods and demand. Location determines the strategy: from stable corporate demand in Limassol to seasonal profitability in Ayia Napa. Each city forms its own investment profile based on infrastructure, tourism and development. The breakdown by destination allows you to more precisely select the entry point for your target – rental, capitalisation or personal residence.

Limassol

A city with a business reputation. Demand from international companies consistently maintains a high price level. In the centre from 3,000 €/m², on the outskirts from 2,100 €/m². The nearest completion of major projects is the third quarter of 2025.

Paphos

The cultural capital of the island. Interest in villas in the mountain zone has intensified: properties from 350,000 euros with a guaranteed yield of 4.8% per annum when rented out. Property in Cyprus here is formalised through a local lawyer, a contract and a 10% deposit reserve.

Ayia Napa

Paradise for short-term rentals. 70% of investors choose properties within 300 metres of the beach. The average yield is 5.5%. Current projects are studios up to 50 m² with prices starting from 140,000 euros.

Larnaca

A city with growth potential. The new harbour and the tourist area have boosted the market. New buildings from 1 900 €/m². How to buy a property in Cyprus in Larnaca – through a certified agency with a local licence, with the participation of a legal representative.

How to buy property in Cyprus in 2025: algorithm

The acquisition of a residential property requires strict adherence to procedures and the involvement of professional participants. Legislation simplifies the process but retains requirements for transparency of the transaction, especially for non-residents. The correct sequence of steps eliminates legal risks and ensures full ownership.

Action Algorithm:

1. Site selection – analysing location, cost, profitability.
2. Due diligence – verification of ownership and permits.
3. Signing of the contract – the amount, payment schedule and responsibilities of the parties are fixed.
4. Registration in the land cadastre – transfer of ownership.
5. Authorisation – required for non-EU foreigners.

A lawyer provides supervision at all stages, including the application for authorisation and accompanying the registration.

Law and Taxes: What nuances are important to consider when purchasing

The financial side of the transaction goes beyond the value of the property – taxation and mandatory fees form the bottom line. Correct calculation and legal preparation exclude delays in processing and minimise fiscal risks.

The purchase is accompanied by the following fees:

• stamp duty – 0.15-0.20 per cent;
• VAT – 5% (first purchase), 19% for subsequent purchases;
• capital gains tax on sale – 20%.

A foreigner applies for an acquisition authorisation through the Council of Ministers. How to buy property in Cyprus without refusals? – provide proof of source of income, purpose of purchase and visa.

Cyprus residence permit and permanent residence permit through the purchase of property

The Residence Permit for Investment in Real Estate programme remains unchanged: the minimum threshold is 300,000 euros (excluding VAT). The document is issued in 60 days when buying a new building.

The residence permit is obtained after 5 years of residence or 7 years for secondary property. How to buy a property in Cyprus and get a residence permit – it means to choose a new object, make full payment and provide proof of funds.

Leases and investment attractiveness

Properties up to 60 m² are available from €450 per month (long term) and from €70 per day (short term). The high season is from May to October. The average yield is 4-6% per annum.

How to buy property in Cyprus for rent – choose a region with developed infrastructure, tourist flow and a limited number of new buildings.

Investment trends

In 2025, purchases among families from Germany, Israel and the Czech Republic have intensified. The reasons are stable climate, English-speaking environment, transparent taxation. Large investment projects – Porto Limassol, Neo Plaza, Ayia Napa Marina.

How to buy property in Cyprus for investment purposes – invest in projects at the construction stage with guaranteed resale in 2-3 years. The average margin is 18-22%.

The pros of living in Cyprus

The comfort of the climate is combined with ease of living and access to European infrastructure. The island offers not only warm winters, but also a clear rental system with transparent rules. The advantages of living in the resort create a strong interest in the location for both residential and investment rentals.

Benefits:

• The average annual temperature is 24 °C;
• lack of central heating;
• access to European schools;
• security and tax transparency.

The rental income provides stable cacheflow:

• Long-term rentals – up to 4% per annum in Larnaca;
• short-term – up to 6% in Ayia Napa.

Property in Cyprus for foreigners

How to buy a property in Cyprus as a non-EU citizen? Formalise the purchase through a Cypriot lawyer. Citizens of the CIS, UAE, Israel and Canada participate in transactions with an international passport and income certificate.

Prices and the market: what the statistics show

The market is showing steady growth. Based on the results of the first quarter of 2025:

• volume of transactions increased by 9.3%;
• the share of foreign buyers was 41%;
• The highest demand is for properties up to 400,000 euros.

Cyprus property prices vary from region to region:

1. Limassol – from 3 000 €/m² (centre), from 2 100 €/m² (suburbs).
2. Paphos – from 1 800 €/m².
3. Larnaca – from 1 900 €/m².
4. Ayia Napa – from 2 400 €/m² (coastal area).

How to buy property in Cyprus with an understanding of real prices? – Use Cyprus cadastre data and monitoring of new property developers’ projects.

Legal aspects: contract and property

The contract fixes the price, terms, settlement procedure and obligations of the parties. In case of breach of terms, the seller pays a penalty. A lawyer accompanies the transaction from signing to registration.
Ownership of the property is transferred after registration with the Land Department. The transaction requires a permit for non-residents. How to buy property in Cyprus and avoid mistakes – check the history of the object, debts, availability of all building permits.

Pre-purchase inspection

A thorough inspection protects against hidden encumbrances and speeds up title registration. A properly structured audit of the property allows you to avoid legal pitfalls and disputes after the purchase.

Before closing the deal, it’s important:

1. Inspect the property for liens or litigation.
2. Request an extract from the cadastre.
3. Verify that a building permit is in place.
4. Carry out an independent assessment of value.
5. Check the legal cleanliness of the documents.
6. Verify the licence of the agency or builder.
7. Confirm payment of taxes and fees by the previous owner.

This approach reduces the likelihood of registration refusal and prevents possible financial disputes. Full verification serves as a guarantee of transparency of the transaction and confirms the legal status of the object.

How to buy a property in Cyprus: the main thing

The choice of location, legal due diligence, specialist support and knowledge of market realities form a safe and profitable purchase. Thus, successful investment requires a comprehensive approach and due diligence at every stage, which is the key to safeguarding your funds and achieving your goals.

On an island where the sun shines 340 days a year and taxes don’t warm the air any more than necessary, powerful reasons to invest in Cyprus property have developed. Financial rationality is combined with European comfort. The benefits are not advertised here – they are proved by figures, stability and concrete stories.

Taxes that don’t squeeze

The Cypriot tax system for investors is characterised by simplicity and predictability. The capital gains rate on the sale of properties is 0% if the property is not a business. Corporate tax is 12.5%, one of the lowest in the EU.

The absence of inheritance tax and exemption from dividend tax for non-residents reinforce the benefits of property investment in Cyprus. This tax architecture allows not just to preserve capital, but to systematically increase it.

Liquidity and price growth

The island has seen a steady rise in prices, with over 45% since 2016 in popular areas including Limassol, Nicosia and Paphos. The reasons to invest in residential property are reinforced by limited supply, especially on the coast, and demand from EU and Middle Eastern nationals.

High liquidity is ensured by an active domestic market and attractiveness to foreign buyers. Properties in central locations are renting for 5-7% per annum. With the right choice, the asset turns into a source of stable income, not just a worthwhile asset.

Rental yield and commercial potential

Commercial properties in Cyprus offer yields of up to 8-10% per annum, especially in Larnaca and Ayia Napa, where tourist and logistics areas are developing. Long-term leases provide stable payments, short-term leases maximise returns in season.

Reasons to invest in residential or commercial property include rental potential. Major IT companies relocating after 2022 have created demand for offices and premium accommodation. Especially in Limassol, which has become known as the “Silicon Quay”.

Permanent residence through purchase: an easy way to the EU

The way into the European legal framework is through permanent residence in Cyprus through property investments. The minimum threshold is €300,000 in a new building. The term of registration – 2-3 months. The residence permit is valid indefinitely, subject to retention of ownership of the property.

This mechanism does not require passing exams, language skills or permanent residence. The purchase provides status and peace of mind, especially against the background of unstable regions. Reasons to invest in Cyprus property include this tool of legal, predictable migration traffic.

Safety

The safety of life in Cyprus exceeds the European average: the crime index is 36 out of 100, similar to the Czech Republic and Austria. The streets of Larnaca and Paphos remain calm even at night. Crime news here is as rare as rain in August.

This is an important factor for investors, especially family investors who are considering relocation or long-term rentals. Confidence in the future and the safety of the asset is part of why the market is stable and attractive.

Sustainable market and openness to foreigners

The property market shows stability: even in the crisis years there was no collapse. Foreigners account for up to 30% of buyers, and in some regions – more than 50%. Registration of transactions is under the control of the Land Department, which excludes fraud.

The reasons to invest in Cyprus property are strengthened by the transparency of legislation, the absence of double taxation with a number of countries and clear rules for non-residents. This market is not just open, it invites mutually beneficial co-operation.

Infrastructure, medicine and comfort of everyday life

Health care offers a European level of service with a flexible choice between the public and private sectors. Private clinics in Nicosia, Limassol and Paphos are included in international accreditations, providing services in English, Greek and Russian.

The GESY system covers all residents and residence permit holders, providing access to a wide range of specialists. The average cost of an appointment is €15-20, making treatment affordable while maintaining quality. This reinforces the reasons to invest in Cyprus property for long-term residence and rental accommodation for families and retirees.

Cyprus property: income, status, protection

The benefits of asset ownership are not limited to returns. The investor receives not only profits, but also currency protection, multi-access to EU jurisdictions and a reputational asset. Property becomes an instrument of financial and personal security.

Investments in premium apartments, villas by the sea or boutique hotels demonstrate a return on investment of 8-11 years with a competent management model. New complexes in Larnaca and Paphos offer an option with guaranteed returns and turnkey management. A loyal tenant base is being formed due to the high standard of living and the region’s status as an international relocation centre.

Cyprus market open to new formats

The market is constantly adapting to new demands. After 2022, segments have become more active: digital offices, flexible spaces, properties for expats. This renews the reasons to invest in residential property, especially when choosing a commercial destination.

Construction companies are offering deferred payment terms, lowering the starting barrier to entry. Government measures to digitalise transactions and introduce green certificates increase the attractiveness of a new fund. Projects aimed at energy efficiency and autonomy – the trends of the coming years – are emerging.

Reasons to invest in Cyprus property: summarise

The way of investing in facilities combines financial efficiency with the comfort of living. The key advantages of investing in the housing market are concentrated in specific benefits:

1. Taxes are low, plain and simple.
2. Permanent residence permit – can be issued without bureaucracy and is valid indefinitely.
3. Yield – 5-10% per annum depending on the type of lease.
4. The market is steady, with prices predicted to rise.
5. Liquidity is high due to demand from foreigners.
6. Safety is above the European average.
7. Health care – European quality, including the private sector.
8. High standard of living – average life expectancy is 82 years.
9. Property in Cyprus for foreigners – no restrictions on purchase.
10. Pros of buying property in Cyprus – legal transparency, protection of rights.

This combination of factors makes island property an asset that is resilient to crises and fluctuations. With the right strategy, investments bring not only income but also strategic advantages.