Invest in Cyprus Real Estate: 2025 Guide & Opportunities

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

At Globihome, working with local experts, we analyze real estate markets. Below, we present all the most important information you need to know if you are planning to purchase property in Cyprus in 2025. Additionally, at the end of the article you will find contact details for a local real estate agent who can prepare up-to-date property listings in Cyprus for you.

Why Invest in an Apartment in Cyprus?

Is it worth investing in real estate in Cyprus? In our opinion, the answer is clear – yes! Real estate investments in Cyprus are distinguished by a unique combination of stability, profitability, and high quality of life. Cyprus, as a member of the European Union since 2004, provides legal security based on British law, guaranteeing transparent procedures and full protection of owners' rights.

Cyprus – key benefits of real estate investment:

• The real estate agent’s commission is usually paid by the seller, not the buyer
• No inheritance or gift tax
• Extensive network of double taxation treaties
• Consistent property value growth of 3–8% annually
• Low, progressive personal income tax (PIT) system
• One of the lowest corporate income tax (CIT) rates in the European Union
• Golden Visa program enabling residence acquisition

The weather in Cyprus is an added draw for investors – over 350 sunny days a year, temperatures from 19–30°C and warm sea of 16–27°C throughout the year. Properties in Cyprus offer a combination of stable value growth and attractive rental income, especially in the tourism sector, where returns can reach 8–12% annually.

Cyprus Property Prices 2025 – Best Location Analysis

Property prices in Cyprus in 2025 vary significantly depending on location and proximity to the sea. Properties in Limassol represent the most expensive market segment as the island’s business center.

Limassol – Cyprus property prices 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 frontline apartments: 5,500 EUR/m²

Paphos – Cyprus property prices 2025:

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

Larnaca - Cyprus property prices 2025:

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

Nicosia - Cyprus property prices 2025:

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

Ayia Napa - Cyprus property prices 2025:

• City center: from 2,500 EUR/m²
• First sea line: from 4,000 EUR/m²

Seafront Apartments - Cyprus on the First Sea Line - Listings and Prices

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

From our experience at Globihome, many clients are looking for sea view properties. If you are also 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 present specific tips and the current real estate 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

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

Mortgage Loan for Property Purchase in Cyprus – Terms and Banks

Mortgage loans for foreigners in Cyprus are available at major local banks, with each institution offering slightly different conditions. Bank of Cyprus as the island's largest bank, offers mortgage loans up to 70% of the property's value for non-residents, requiring a minimum monthly income 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 clearance certificate, and sworn translations of all documents into English or Greek. Mortgage loan costs include an application processing fee of 300-500 EUR, bank valuation 400-600 EUR, notary fees 800-1200 EUR, plus life and property insurance.

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Cyprus Apartments – Step-by-Step Purchase Procedure

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

STAGE 1: Define Your Purpose and Budget

• Property for personal use or investment for rental?
• Budget = property price + 5% VAT (if this is your first property bought from a developer) + 1% lawyer's fee + 0.2% stamp duty. Detailed taxes are discussed later in the article.

STAGE 2: Choose a Property

• With the help of an agency, listing portals, or directly from the developer.
• On-site visit for 3–5 days or an online virtual tour.
• You can receive dedicated offers from an agent recommended by Globihome, whose contact details can be found at the end of the article

STAGE 3: Property Reservation

• Sign the reservation agreement.
• Pay the deposit: usually 1,000–5,000 EUR.

STAGE 4: Legal Analysis (Due Diligence)

• A local lawyer checks: title deed, permits, mortgages, liens.
• Timeframe: 1-2 weeks.

STAGE 5: Government Approval (for non-EU citizens)

• Application to the Ministry of Interior for purchase approval.
• Usually a formality, but required.

STAGE 6: Signing the Final Agreement

• In the presence of a lawyer or representative.
• Final payment of the price (cash or mortgage).

STAGE 7: Land Registry Registration

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

Buying Property in Cyprus – All Purchase Costs 2025

When setting your budget for buying property in Cyprus, you must remember the additional fees beyond just the price of the apartment or house.

Transfer Fee (Property Tax) for Resale Properties in Cyprus:

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

VAT when buying a new property in Cyprus from a developer:

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

Who can qualify for the preferential 5% VAT rate instead of 19% VAT when buying a new property in Cyprus?

Since July 2023, Cyprus has changed the qualification criteria for the 5% VAT rate on new residential properties, adjusting its laws in line with EU directives. Below are the conditions that must be met to apply the preferential VAT rate:

• The buyer must be a natural person, and not a legal entity.
• The property must serve as a permanent residence for at least 10 years.
• The maximum usable area must not exceed 130 m².
• The maximum property value must not 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 5% VAT, and the excess is taxed at 19%.

The reduced VAT rate does not apply, if the property exceeds both 190 m² and 475,000 EUR — in such cases a 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 buy a property with 5% VAT, then for the next 10 years you cannot use this relief again. Of course, after 10 years you can again apply for the 5% VAT when buying a new property.

Bank, legal, and registration fees in Cyprus:

• Transfer of funds: 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 per year

Example – resale property worth 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?

Apartment maintenance costs in Cyprus are an important element of budget planning for every property owner and directly impact profitability and investment return in 2025.

Monthly utilities for a 2-room apartment:

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

Communal 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:

• 80 m² apartment: 380-650 EUR/month
• 150 m² house: 680-1,120 EUR/month

Apartment rentals in Cyprus – long-term and short-term rental prices

Many property owners in Cyprus choose to rent out their apartments. Most often, investors fly in once or twice a year for holidays, and for the rest of the time rent the properties to tourists from all over Europe. 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 profitability data 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 income

Cyprus weather

The weather in Cyprus is one of the island's main advantages, with over 350 sunny days a year and a mild Mediterranean climate ideal for renting out apartments 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 occurs mainly in winter; summer is practically rainless. Mild winds and moderate humidity (max 65%) ensure comfort all year round.

Summary: Investment prospects in Cyprus in 2025

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

In 2025, Cyprus remains one of the most secure real estate markets for foreign investors. Safe legislation, price growth, stable ROI, and high tourist interest make investing in an apartment in Cyprus a sensible decision.

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