Southern Cyprus Real Estate Guide - Smart Investment Tips
Table of Contents
Southern Cyprus is one of the most desirable places to invest in real estate in the Mediterranean basin. The island of Aphrodite has for years attracted investors from around the world – and for very specific reasons. Political stability, EU membership, a favourable tax system and record tourist inflows mean that buying property in Southern Cyprus in 2026 is a decision worth serious consideration.
At Globihome we analyse European property markets and work with local experts. In this article we present everything you need to know about investing in property in Southern Cyprus – from current prices, through purchase procedures, to the options for obtaining permanent residence under the Golden Visa programme.
Apartment prices in Southern Cyprus are, as always, dependent on location. Limassol properties maintain a leading position with an average price of apartments amounting to 4,850 euros per square metre in premium seafront developments, while Paphos apartments offer a more affordable entry point from 2,900 euros/m² in locations up to 500 metres from the sea. Cyprus house prices 2024 rose on average by 12.3%, and forecasts for the coming years indicate a continued upward trend of 8-10% annually.
Investing in property in Southern Cyprus in 2026 is driven by three key buyer segments: citizens of Israel (accounting for 31% of all international transactions), investors from Central and Eastern European countries (24%) and buyers from the Middle East region (19%). Regardless of your nationality, a safe purchase of property in Southern Cyprus requires the support of a local expert. At Globihome we prioritise quality, so during the transaction process you will be assisted by our recommended experienced real estate agent in Southern Cyprus. This is an expert who knows the local market perfectly. You can find direct contact details for this specialist at the end of the article – you can count on
Why does Southern Cyprus attract investors?
Southern Cyprus (the Republic of Cyprus) has been a full member of the European Union since 2004. This is a fundamental difference compared with the internationally unrecognised northern part of the island. For investors it means full legal security, protection of ownership and transparent procedures based on the British legal system.
Key investment advantages of Southern Cyprus:
- Legal security – a legal system based on British common law, full protection of ownership rights in the land registry (Title Deed)
- Record-breaking tourism – in 2024 Cyprus for the first time in its history surpassed 4 million tourists, beating the 2019 record
- EU membership – Cyprus has been a full EU member since 2004, which guarantees legal stability based on British law and full protection of ownership. For EU citizens, purchasing property does not require any additional permits.
- Favourable tax system – no property tax, the possibility to benefit from a reduced VAT rate of 5% when purchasing a first property (instead of the standard 19%), and a zero capital gains tax for non-residents make Cyprus a true haven for investors.
- Permanent Residency Program – purchase of a new property worth at least 300 000 EUR net opens a fast track to obtaining residency for the whole family.
- Investment climate – over 300 sunny days a year, temperatures 19-30°C, warm sea year-round
In 2026 Cyprus also plans to join the Schengen Area, which will further increase the island's appeal to investors and people planning to relocate.
Real estate market in Cyprus – current data and 2026 forecasts
Cypriot real estate market is characterized by stable, healthy growth. After a dynamic rebound following the pandemic, the market has entered a phase of balanced development.
Key real estate market statistics for Cyprus 2024-2025:
- Increase in apartment prices in March 2025 amounted to 4,83% year-on-year
- Projected growth for 2025: 5-10% depending on location
- RICS/KPMG price index for Q4 2024 showed an increase apartments by 12,7% and houses by 5,7%
- The average value of a residential transaction in 2024 was approximately 259 000 EUR
- 72% of all transactions relates to apartments
According to the data of the Cypriot Department of Lands and Surveys, the number of transactions involving foreigners in the past year increased by around a dozen percent. Experts predict this trend will continue, particularly in the premium and coastal property segments.
Factors driving the real estate market in Southern Cyprus:
- Record influx of tourists generating demand for short-term rentals
- Program Golden Visa attracting investors from outside the EU
- Limited supply of land in top locations
- Infrastructure development – modernization of ports, airports and new residential districts
- Growing interest from investors from the Middle East and Asia
Property prices in Southern Cyprus in 2026
Property prices in Southern Cyprus vary significantly depending on location, proximity to the sea and the standard of finish. Below we present property prices in Southern Cyprus after our analysis at Globihome. If you want to receive the most up-to-date listings, please contact us with a real estate agent recommended by us, whose contact we provide free of charge at the end of the article.
Limassol – how much do premium properties cost in Southern Cyprus?
Limassol is the island's business and financial centre, where prices reach the highest levels. The average price of apartments in Q1 2025 was 372 000 EUR (an increase of 12.4% y/y), making them the most expensive in all of Cyprus. An ideal location for those looking for luxury apartments. The highest prices, but also the highest rental value.
- City centre: from 4000 EUR/m²
- Limassol Marina (prestigious district): from 6000 EUR/m²
- Germasogeia (tourist district): from 3500 EUR/m²
- Seafront apartments: from 5500 EUR/m²
Pafos - what are the property prices?
Pafos is growing dynamically and in Q4 2024 recorded the largest increase in the apartment price index among all regions. The average house price reached 693 000 EUR. Pafos is famous for its UNESCO monuments and peaceful climate. A favourite spot for families looking for a second home. Prices are lower than in Limassol, with very strong growth momentum.
- Historic centre: from 2500 EUR/m²
- Kato Pafos (by the beach): from 3500 EUR/m²
- Chloraka (residential area): from 2000 EUR/m²
- Coral Bay (tourist resort): from 3000 EUR/m²
- Secondary market: 2400 EUR/m²
Larnaca – how much do houses cost?
Larnaca is a market in a phase of rapid development with modern port and airport investments. The average price of houses has risen to 389 000 EUR. The city is developing rapidly, and the proximity to the main airport is a huge advantage. An ideal entry point for new investors.
- City centre: from 1800 EUR/m²
- Finikoudes (promenade): from 3000 EUR/m²
- Mackenzie (beach district): from 2500 EUR/m²
- Secondary market: 2200 EUR/m²
Nicosia – how much do the cheapest properties cost in Southern Cyprus?
Nicosia is a less popular market among foreign investors due to the lack of sea access, but it offers the lowest prices and a stable long-term rental market.
- Centre: from 1500 EUR/m²
- Residential districts: from 1200 EUR/m²
- Average apartment price: 191 000 EUR
- Secondary market: 2000 EUR/m²
Ayia Napa and Protaras – how much do properties cost in tourist resorts in Southern Cyprus?
These popular resorts attract investors looking for high returns from short-term rentals. These resorts attract millions of tourists and offer the highest short-term rental yields. Seasonality is a challenge, but during peak season apartments generate high income.
- Ayia Napa centre: from 2500 EUR/m²
- Seafront: from 4000 EUR/m²
- Protaras: from 2800 EUR/m²
- Secondary market: 2300 EUR/m²
Property purchase procedure in Southern Cyprus step by step
Process of purchasing property in Southern Cyprus is relatively straightforward for EU citizens. Here is a detailed guide:
Step 1: Choosing a property and negotiations
After finding a suitable property, price negotiations begin. On the Cypriot market negotiations are standard practice – the margin open to negotiation is usually 5-10%.
Step 2: Reservation agreement
Signing the reservation agreement and paying a deposit (usually 1-2% of the property's value or 5 000-10 000 EUR) guarantees the removal of the listing from the market.
Step 3: Legal due diligence
This is a key stage. In Cyprus it is the lawyer, not the notary, who plays the main role in the transaction. The lawyer checks:
- Title Deed (Title Deed)
- No mortgage encumbrances
- Compliance with the local development plan
Step 4: Obtaining a tax number and bank account
Before signing the sale agreement it is necessary to obtain a Cypriot tax number and open an account with a local bank.
Step 5: Signing the sale agreement (Contract of Sale)
After paying the next installment (usually 20-30% of the value) the main sale agreement is signed, which the lawyer registers at the District Land Office within 60 days.
Step 6: Transfer of ownership
After the full amount and all taxes are settled, the Title Deed is transferred to your name.
Throughout the process, from finding to purchasing the property, a tried-and-tested real estate agent recommended by us, who is an expert in this market, will help you. We provide contact details at the end of the article. In conversation you can refer to Globihome.
Taxes and fees when purchasing property in Southern Cyprus 2026
When planning a property purchase in Southern Cyprus, you must take into account additional costs beyond the purchase price. Cyprus's tax system is favorable to investors but requires careful understanding.
VAT on buying a new property from a developer in Southern Cyprus
The standard VAT rate is 19% and applies to all new properties purchased from a developer.
Preferential VAT rate of 5% is available to persons meeting the following conditions (from July 2023):
- The buyer must be an individual (not a company)
- The property must serve as a permanent place of residence for at least 10 years
- Maximum usable floor area: 130 m²
- Maximum property value: 350 000 EUR (excluding VAT)
If the property exceeds 130 m² or 350 000 EUR, the first 130 m² and up to 350 000 EUR are subject to the 5% rate, and the excess is taxed at 19%.
Important: Reduced VAT rate does not apply, if the property exceeds both 190 m², as well as 475 000 EUR – then the full 19% rate applies.
Transfer Fee - property tax on resale properties in Southern Cyprus
Applies to properties from the resale market not subject to VAT:
- Up to 85 000 EUR: 3%
- 85 001 - 170 000 EUR: 5%
- Above 170 001 EUR: 8%
If the property is subject to VAT, the Transfer Fee is not charged.
Stamp Duty when buying property in Southern Cyprus
The stamp duty must be paid within 30 days of signing the contract:
- 1,50 EUR per 1000 EUR up to 170 860 EUR
- 2,00 EUR per 1000 EUR above that amount
Legal costs and other fees for buying property in Southern Cyprus
- Lawyer's services: 1-2% of the property's value
- Loan application processing fee: 300-500 EUR
- Bank valuation: 400-600 EUR
- Notary fees: 800-1200 EUR
Property maintenance costs in Southern Cyprus
The good news is that in Cyprus there is no traditional cadastral property tax. Readers of our Globihome blog often ask: "how much does it cost to live in Cyprus?". Property maintenance costs are relatively low compared to Western Europe.
- Property tax: It was abolished in 2017! Only local municipal charges are paid (garbage collection, street lighting), around 100-200 EUR per year.
- Service charge (Common Expenses): In complexes with a pool and garden these fees usually range from 50 to 150 EUR per month, depending on the standard.
- Utilities: Electricity and water are paid according to consumption. Bear in mind the air conditioning, which generates higher bills in summer.
Purchase financing – mortgage for foreigners
Mortgages in Southern Cyprus are also available to foreigners. Bank of Cyprus, as the largest financial institution on the island, offers the following terms:
- Financing up to 70% of the property's value for non-residents
- Minimum monthly income: 2 500 EUR
- Loan term: up to 25-30 years
- Interest rate: 3,5-5,5% per year
Required documents include proof of income, a credit history from the country of origin and employment confirmation. The application processing usually takes 4-6 weeks.
Golden Visa program in Southern Cyprus – permanent residence for investing in property
The Golden Visa program is one of the fastest and simplest residency programs in Europe. It enables obtaining permanent residency in Cyprus in exchange for an investment in real estate.
Golden Visa 2026: Basic requirements:
- Purchase of a new property of a minimum value 300 000 EUR (+VAT)
- Proof of annual income from outside Cyprus
- Placing a deposit in a Cypriot bank
Benefits of the Golden Visa program:
- Permanent residency – valid indefinitely, requires renewal of the card every 10 years
- Family included in the program – spouse and children up to 18 years old (children aged 18-25 who are studying can submit separate applications)
- Minimum residency requirements – a visit to Cyprus is sufficient once every 2 years
- Path to citizenship – after 8 years of legal residence you can apply for a Cypriot passport
- Fast procedure – application processing time is about 2-3 months
The program covers the entire family (spouse and children up to 25 years old) and is granted for life. An additional benefit is the possibility of obtaining Non-Domicile status, which provides:
- 0% tax on dividends for 17 years
- 0% tax on interest
- 0% tax on capital gains (except for the sale of property in Cyprus)
Important: Funds for the investment must come from abroad – the purchase cannot be financed with a loan from a Cypriot bank.
Investment returns and property rental in Southern Cyprus
Investment in real estate in Southern Cyprus can generate attractive income both from capital appreciation, as well as rental income.
Long-term Rental Yields in Southern Cyprus
The average long-term rental yield in Cyprus is 4-6% per year. It is a stable passive income, particularly attractive in cities such as Nicosia and Larnaca, where demand is driven by students, corporate employees and families.
Average long-term rental prices:
- 1-bedroom apartment: 750-930 EUR/month
- 3-bedroom apartment: 1400-1750 EUR/month
Short-term Rental Yields in Southern Cyprus
In tourist resorts such as Ayia Napa, Protaras or Paphos, the yield from short-term rental can reach 7-12% per year.
Key tourism data for Cyprus 2024:
- Over 4 million tourists per year (all-time record)
- Tourism revenues: over 2.5 billion EUR
- Poland in third place (337,000 tourists, an increase of 23%)
- The United Kingdom dominates with 34.5% market share
- Israeli market: 11% share
Investment Pitfalls: Northern Cyprus vs Southern Cyprus
As professionals we must clearly warn against properties in Northern Cyprus. Although prices may appear 30-40% lower there, the legal risk is enormous.
Lack of recognized property titles: Many lands in the north legally belong to Greek Cypriots displaced in 1974. International courts rule in their favor, creating a risk of investors losing property.
No EU protection: Northern Cyprus is outside the jurisdiction of European courts.
Resale problems: Market liquidity in the north is significantly lower, and European banks do not finance purchases there.
In Globihome we recommend only safe properties in the territory of the Republic of Cyprus (Southern Cyprus).
Southern Cyprus Real Estate vs Other Destinations – Comparison
How real estate in Cyprus fare compared to other popular investment destinations in Europe?
Entry threshold for Golden Visa:
Annual property tax:
Short-term rental yield:
Cyprus stands out for the absence of a property ownership tax, a competitive threshold for the Golden Visa and very attractive short-term rental yields.
FAQ: Frequently Asked Questions about Real Estate in Southern Cyprus
Summary: Is it worth buying property in Southern Cyprus in 2026?
Property in Southern Cyprus in 2026 is a combination of a stable investment and a high quality of life. EU membership, a favorable tax system, the Golden Visa program, and a growing tourism market mean the island attracts more and more investors from across Europe.
Key facts to remember:
- Property prices are rising by 5-10% per year
- Rental yields: 5-12% depending on strategy
- Entry threshold for Golden Visa: 300 000 EUR
- Reduced VAT 5% on the first property
- No tax on property ownership
Are you planning to buy an apartment or house in Cyprus? At Globihome we work with local experts who will help you find the ideal property tailored to your needs and investment goals. Contact our recommended real estate agent to receive current offers from Paphos, Limassol or Larnaca.
