Invest in Cyprus Real Estate: 2025 Guide & Opportunities

Cyprus is one of the most popular investment destinations in Europe for foreigners looking for seaside homes and stable investments. Real estate market in Cyprus offers unique opportunities for those planning to buy property in Cyprus in 2025 as a long-term investment or vacation residence.

At Globihome, we collaborate with local experts to analyze real estate markets. Below, we present all the essential information you need to know if you are planning to purchase property in Cyprus in 2025. Additionally, at the end of the article, you'll find contact details for a local real estate agent who can prepare current property offers in Cyprus for you.

Why invest in property in Cyprus?

Is it worth investing in real estate in Cyprus? Our opinion is unequivocal - yes! Investments in Cyprus real estate are characterized by a unique combination of stability, profitability, and high quality of life. Cyprus, as a member of the European Union since 2004, ensures legal security based on British law, guaranteeing transparency of procedures and full protection of property rights.

Cyprus - key benefits of real estate investment:

• Commission for the real estate agent is usually paid by the seller, not the buyer
• No inheritance and gift tax
• Extensive network of double taxation avoidance agreements
• Steady property value increase of 3-8% annually
• Low, progressive personal income tax system (PIT)
• One of the lowest corporate income tax rates (CIT) in the European Union
• Golden Visa program allowing for residency acquisition

Weather in Cyprus is an additional magnet attracting investors - over 350 sunny days a year, temperatures ranging from 19-30°C, and warm sea 16-27°C throughout the year. Properties in Cyprus offer a combination of stable value growth with attractive rental income, especially in the tourist sector where profitability can reach 8-12% annually.

Property prices in Cyprus 2025 – analysis of the best locations

Property prices in Cyprus in 2025 vary significantly depending on location and proximity to the sea. Limassol real estate represents the most expensive market segment as the business center of the island.

Limassol - real estate prices Cyprus 2025:

• City center: from 4,000 EUR/m²
• Marina (prestigious district): from 6,000 EUR/m²
• Germasogeia (tourist district): from 3,500 EUR/m²
• New apartments on the first line: 5,500 EUR/m²

Paphos - real estate prices Cyprus 2025:

• Historic center: from 2,500 EUR/m²
• Kato Pafos (by the beach): from 3,500 EUR/m²
• Chloraka (residential area): from 2,000 EUR/m²
• Coral Bay (tourist resort): from 3,000 EUR/m²

Larnaca - Property Prices Cyprus 2025:

• City center: from 1,800 EUR/m²
• Finikoudes (promenade): from 3,000 EUR/m²
• Mackenzie (beach district): from 2,500 EUR/m²

Nicosia - Property Prices Cyprus 2025:

• Center: from 1,500 EUR/m²
• Residential districts: from 1,200 EUR/m²

Ayia Napa - Property Prices Cyprus 2025:

• Center: from 2,500 EUR/m²
• Seafront: from 4,000 EUR/m²

Seaside Apartments - Cyprus Seafront Offers and Prices

Sea view apartments in Cyprus are exclusive properties no more than 50 meters from the beach with panoramic sea views, luxurious finishes, smart home systems, and access to private pools, spas, and 24/7 security.

From our observations at Globihome, many clients are looking for properties with sea views. If you're interested in seaside locations, be sure to read about Seaside Apartments in Albania - Prices and Procedures, Buying Property in Spain - Investor's Guide 2025 or How to Buy Property in Madeira – Prices, Taxes, and Formalities. In the articles, we'll provide specific advice and the current market situation in each country. Below you'll find an analysis of seafront property prices in Cyprus.

Limassol Marina - Apartment Prices:

• Studio (40-50 m²): 350,000 - 450,000 EUR
• 1 Bedroom (60-80 m²): 450,000 - 650,000 EUR
• 2 Bedrooms (90-120 m²): 650,000 - 950,000 EUR
• 3 Bedrooms (130-180 m²): 950,000 - 1,500,000 EUR
• Penthouse (200+ m²): 1,500,000 - 3,000,000 EUR

Paphos - Coral Bay - Apartment Prices:

• Studio: 250,000 - 350,000 EUR
• 1 Bedroom: 350,000 - 500,000 EUR
• 2 Bedrooms: 500,000 - 750,000 EUR
• 3 Bedrooms: 750,000 - 1,200,000 EUR

Larnaca - Mackenzie - Apartment Prices:

• Studio: 200,000 - 300,000 EUR
• 1 Bedroom: 300,000 - 420,000 EUR
• 2 Bedrooms: 420,000 - 600,000 EUR

The best front-line complexes are Limassol Del Mar with a marina, The Oval with swimming pools and Leptos Coral Beach with golf and spa.

Mortgage for property purchase in Cyprus – terms and banks

Mortgage loans for foreigners in Cyprus are available from the main local banks, with each institution offering slightly different terms. Bank of Cyprus as the largest bank on the island offers mortgage loans up to 70% of the property's value for non-residents, with minimum monthly income requirements of 2,500 EUR. Hellenic Bank specializes in serving international clients, offering financing up to 65% of the value, while Alpha Bank Cyprus requires a higher down payment (40%) but offers competitive interest rates.

Required documents include proof of income from the last 6 months, employment certificate, bank statements, debt-free certificate, and certified translations of all documents into English or Greek. Mortgage costs include an application processing fee of 300-500 EUR, bank appraisal 400-600 EUR, notary fees 800-1,200 EUR, and life and property insurance.

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Cyprus apartments - purchase procedure step by step

How to buy property in Cyprus as a foreigner? This process requires a systematic approach and professional support.

STEP 1: Define the purpose and budget

• Apartment for personal use or investment for rent?
• Budget = property price + 5% VAT (if it's your first property purchased from a developer) + 1% lawyer's fee + 0.2% administrative fees. Detailed taxes are discussed later in the article.

STEP 2: Choose the property

• With the help of agencies, portals, or directly from the developer.
• Visit 3–5 days on-site or take a virtual online tour.
• Dedicated offers for you can be obtained from Globihome's recommended agent, whose contact details you'll find at the end of the article.

STEP 3: Property reservation

• Signing the reservation agreement.
• Deposit payment: usually 1,000-5,000 EUR.

STEP 4: Legal analysis (Due Diligence)

• Local lawyer checks: ownership title, permits, mortgages, encumbrances.
• Time: 1-2 weeks.

STEP 5: Government approval (for non-EU persons)

• Application to the Ministry of Internal Affairs for permission to purchase.
• Typically a formality, but required.

STAGE 6: Signing the final contract

• In the presence of a lawyer or agent.
• Final payment of the price (cash or loan).

STAGE 7: Registration in the Land Registry

• Registering the property in your name.
• Registration fee + Transfer Fee (purchase tax).

Costs of purchasing an apartment in Cyprus - all fees 2025

When determining your budget for purchasing real estate in Cyprus you must remember the additional fees beyond the price of the apartment or house itself.

Property transfer tax for secondary market in Cyprus - Transfer Fee:

• Up to 85,000 EUR: 3%
• 85,001 - 170,000 EUR: 5%
• Above 170,001 EUR: 8%
• The fee is not charged if the property is new and subject to VAT.

VAT on purchasing new property in Cyprus from a developer:

• 5% VAT – preferential VAT rate for the first residential property, provided certain conditions are met.
• 19% VAT – standard rate for second and subsequent properties, investment apartments, and commercial properties.

Who can obtain the preferential 5% VAT rate instead of 19% VAT when purchasing a new property in Cyprus?

Since July 2023, Cyprus has changed the qualification criteria for the 5% VAT rate on new residential properties, adapting regulations to EU directives. Below are the conditions that must be met to benefit from the preferential VAT rate:

• The buyer must be an individual, not a legal entity.
• The property must be used as a permanent residence for at least 10 years.
• The maximum usable area cannot exceed 130 m².
• The maximum value of the property cannot exceed 350,000 EUR (excluding VAT).

If the property exceeds 130 m² or 350,000 EUR, then the first 130 m² and up to 350,000 EUR of value are subject to a 5% VAT rate, and the surplus is taxed at a rate of 19%.

The reduced VAT rate is not applicable, if the property exceeds both 190 m² and 475,000 EUR — in this case the full VAT rate of 19% applies.

It is also worth remembering that the 5% relief can be used only once every 10 years. If you purchase a property with 5% VAT, for the next 10 years you cannot avail yourself of this relief again. Of course, after 10 years, you can reapply for the 5% VAT on the purchase of a new property.

Bank, legal, and registration fees in Cyprus:

• Fund transfer: 50-200 EUR
• Lawyer: 1-1.5% of value (min. 1,500 EUR)
• Land Registry: 0.5% of value (min. 85 EUR)
• Insurance: 0.1-0.2% of value annually

Example - secondary market property valued at 150,000 EUR:

• Transfer Fee: 7,500 EUR
• Lawyer: 1,500 EUR
• Other costs: 800 EUR
• Total: ~9,800 EUR (6.53%)

What are the maintenance costs of an apartment in Cyprus?

Maintenance costs of an apartment in Cyprus are an essential element of budget planning for every property owner and directly affect profitability and return on investment 2025.

Monthly utilities for a two-bedroom apartment:

• Electricity: 150-250 EUR/month
• Water: 40-80 EUR/month
• Internet: 45-65 EUR/month

Common area fees:

• Standard apartment: 50-120 EUR/month
• Apartment with pool: 80-150 EUR/month
• Luxury apartment with concierge: 150-300 EUR/month

Summary of monthly property maintenance costs:

• Apartment 80 m²: 380-650 EUR/month
• House 150 m²: 680-1,120 EUR/month

Renting an apartment in Cyprus - long-term and short-term rental prices

Many property owners in Cyprus choose to rent out their apartments. Most often, investors visit once or twice a year for holidays, and rent out properties to tourists from all over Europe for the rest of the time. Thanks to the Mediterranean climate with 350 sunny days a year, renting an apartment in Cyprus generates income for most of the year. Below, we present data on profitability from the best locations such as Limassol Marina, Coral Bay in Paphos, and Mackenzie Beach in Larnaca:

Long-term rental rates (EUR/month):

• Studio (30-40 m²): 400-700 EUR
• 1 bedroom (50-70 m²): 600-1,100 EUR
• 2 bedrooms (80-100 m²): 900-1,600 EUR
• 3 bedrooms (120+ m²): 1,300-2,500 EUR

Short-term rental (EUR/night):

• Beachfront studio: 45-90 EUR
• 1 bedroom: 65-120 EUR
• 2 bedrooms: 90-160 EUR
• 3 bedrooms: 130-220 EUR

Management costs:

• Long-term: 10-15% of rent
• Short-term: 20-30% of revenue

Cyprus weather

The weather in Cyprus is one of the island's main assets, with over 350 sunny days a year and a mild Mediterranean climate ideal for renting an apartment in Cyprus.

Air temperatures:

• Winter (December-February): 15-19°C day, 8-12°C night
• Spring (March-May): 20-26°C
• Summer (June-September): 28-35°C (max 40°C)
• Autumn (October-November): 22-28°C

Sea temperature:

• Coldest (February-March): 16-17°C
• Warmest (August-September): 27-28°C
• Swimming season: May-November

Rainfall generally occurs in winter, while summer is virtually rain-free. Mild winds and moderate humidity (max 65%) ensure comfort throughout the year.

Summary: Investment Prospects in Cyprus for 2025

Investment prospects in Cyprus for 2025 look incredibly promising. The real estate market in Cyprus for 2025 is characterized by stable growth, increasing international demand, and favorable investment conditions.

In our opinion, Cyprus remains one of the most interesting real estate markets for foreign investors. Secure law, price growth, stable ROI, and high tourist interest make investment in property in Cyprus a sensible decision.

Looking for current property buying offers in Cyprus? Contact our recommended agent – we will help you find the ideal property and guide you through the entire purchase process step by step.