Buying an Apartment in Southern Cyprus – A Complete Guide for Real Estate Investors in 2025

Cyprus is expected to be one of the most attractive real estate markets in Europe in 2025, with current price growth of 5-10%, a favorable tax system, and prices starting from €170,000 for a seaside apartment. This makes it an increasingly popular choice for Polish and international investors.

Record growth and current prospects for the real estate market

In 2025, the real estate market in Southern Cyprus will continue to attract the attention of international investors and demonstrate stable growth. In recent years, the volume of transactions has been steadily increasing, with a significant increase in the number of concluded contracts in 2024 compared to the previous year. This makes Cyprus an attractive destination for those seeking safe and profitable real estate investments. Current property prices on this Mediterranean island are rising by 5-10% annually , and experts predict this trend will continue in the real estate market.

Key real estate market data 2025:

• Average residential transaction value: €259,000
   
•  Apartments constitute 72% of all properties sold
  
• Real estate prices are constantly rising
  
• The property price index has reached a level close to the 2008 record highs

Unique benefits of the tax system – Company in Cyprus

 No capital gains tax for non-residents – selling a property after a few years can generate significant profits without additional tax burden for any investor.

Favorable tax system – Cyprus offers:

•  Income tax-free allowance: €19,500 per year
  
• Progressive tax rates: 20-35%
   
• No inheritance and gift tax
  
•  VAT 5% instead of the standard 19% for the first apartment (savings of up to approx. €28,000)

Full EU membership

As a member of the EU, Cyprus offers complete legal security. Polish citizens can freely purchase property in Cyprus without additional permits , and the purchase process is protected in accordance with European standards.

The process of buying a property in Cyprus step by step

1. No need to obtain additional permits for EU citizens

European Union citizens can buy property in Southern Cyprus without the need to obtain government permits , which greatly simplifies the property purchasing process.

2. Cooperation with a real estate agency and property selection

Cooperation with a proven real estate agency ensures:

1. Verification and selection of offers in accordance with the investor's budget
2. Organizing a trip to view real estate
3. Contacting specialists and lawyers 
4. Access to the best offers and help in finding the perfect property

3. Payment of the reservation deposit

Once you've chosen your apartment, you pay a deposit of €5,000-€10,000 . This amount is non-refundable, but it's included in the property price and reserves it for 30-60 days .

4. Legal support

Due to the complex legal framework surrounding property purchases in South Cyprus, hiring a lawyer specializing in local real estate law is recommended. A lawyer will conduct due diligence and verify the property's encumbrances. Cost: 1-2% of the property value .

5. Signing the preliminary contract

After paying 30-40% of the property value , the contract is submitted to the Cypriot Land Registry. All contracts in Cyprus are drafted in Greek and English to ensure mutual understanding.

Current costs of buying a property in Cyprus in 2025

Taxes and fees required upon purchase

VAT (Value Added Tax):

•  19% – standard rate for new properties
•  5% – relief for the first apartment (up to 135m², maximum €350,000)

Stamp Duty:

• First €5,000: exempt
• €5 001 – €170 000: 0,15% 
• Above €170,000: 0.2% 

Transfer Fees (secondary market only):

• Do €85 000: 3% 
• €85 001 – €170 000: 5% 
• Above €170,000: 8% 
•  Note: Transfer Fees do not apply if VAT has been paid
•  50% discount for joint ownership (e.g. married couple)

Additional transaction costs

•  Lawyer: 1-2% of the property value
•  Notary fees: approximately €1,000
•  Insurance: €100-300 per year
•  Local taxes: €90-300 per year

The best locations to buy property in Cyprus in 2025

Limassol – Business Center (highest prices)

•  Characteristics: The largest city, the financial center of the island
•  Prices: Studio apartments in the city center start at around €250,000; the closer to the sea, the higher the prices, even from €500,000 upwards
•  For whom: Investor looking for high rental yields

Paphos – UNESCO Heritage (Best Investment Opportunities)

•  Characteristics: UNESCO city, rich cultural heritage, attractive beaches
•  Prices: Lower than in other parts of Cyprus; smaller apartments can be found from around €180,000
•  For whom: Investors looking for unique properties and peace and quiet

Larnaca – affordable prices and airport

•  Features: Port and international airport on the island
•  Prices: €1,800/m² in the city centre, €1,200/m² outside the city centre; apartments with a sea view may be significantly more expensive.
•  For whom: First purchase, good flight connections

Nicosia – capital (no beach access)

•  Characteristics: Administrative and business center of Cyprus
•  Prices: Apartments from approx. €100,000
•  For whom: Urban lifestyle, proximity to universities

Ayia Napa and Protaras – tourist resorts

•  Characteristics: Popular seaside resorts with beautiful beaches
•  Prices: Moderate, high seasonal returns, prices starting from €160,000
•  For whom: Short-term rental, private vacation

Northern Cyprus (Turkish Republic of Northern Cyprus) – investment alternative

•  Characteristics: Lower real estate prices, growing tourism market
•  Prices: Often lower than in southern Cyprus
•  Who is it for: Popular among investors looking for a budget investment

Profitability of real estate investments in Cyprus in 2025 – what attracts investors from around the world?

Profits from rental properties

•  Long-term rental: 4-6% per year
•  Short-term rentals: Up to 10-12% seasonally on the island
•  Value increase: 5-10% per year

Factors contributing to the increase in property value in Cyprus

•  Record Tourism: Steady increase in the number of tourists visiting the island
•  Infrastructure investments: Modernization of ports, airports, roads in Cyprus
•  International interest: Growing influx of global investors
•  Limited Supply: Geographical limitations of the island

Financing the purchase of real estate in Cyprus

Mortgages for EU citizens

•  Availability: Up to 70% of property value
•  Interest rate: 3.5-5.5%
• Requirements:
  • Presentation of all required documents
  • Documented income
  • Own contribution minimum 30%
  • Positive credit history

The loan process when purchasing real estate

1. Initial assessment of capacity
2. Submitting full documentation to a Cypriot bank
3. Property valuation by the bank
4. Credit decision (2-4 weeks)
5. Signing a loan agreement

The most common mistakes when buying property in Cyprus and how to avoid them.

1. Lack of professional legal support

 Error: Attempted self-transaction
Solution: Working with a Cypriot lawyer is highly recommended.

2. Not verifying the developer

 Error: Selection based only on price
Solution: Checking permits and implementation history by the developer

3. Ignoring additional costs when purchasing

 Error: Budgeting only the purchase price
Solution: Include all fees (VAT, lawyer, taxes)

4. Buying real estate without checking the title deeds

 Error: Purchase without verification
Solution: Mandatory verification of the legal status of the property

Property maintenance costs in Cyprus in 2025

Monthly property maintenance costs (€150-300):

•  Utilities (electricity, water): €100-200
•  Internet: €25-45
•  Complex management: €30-100
•  Insurance: €10-25 per month
•  Local taxes: €8-25 per month

Is it worth buying a property in Cyprus in 2025?

 Definitely YES! All analyses point to positive investment prospects:

Arguments for investing in property in Cyprus:

 – Record sales – the highest in 17 years
– Stable price growth – currently 5-10% per year
– No need to obtain permits for EU citizens
– Favorable tax system – 5% VAT for the first apartment
– High rental yields – driven by record tourism
– Full EU membership – legal security
– Perfect climate – 300+ sunny days per year on the island

Current real estate market trends:

•  5-10% increase in property value 
•  Prices are rising 1-3% per month due to the limited area of the island
• The largest infrastructure projects in the Mediterranean
• More and more Poles choose Cyprus as their permanent place of residence.
• Favorable climatic conditions all year round

Practical tips for buying property in Cyprus in 2025

Before purchasing a property:

1.  Determine a realistic budget with all transaction costs
2.  Check your creditworthiness early with a Cypriot bank
3.  Find a real estate agency with good references and start collaborating
4.  Schedule an in-person viewing or a completely remote purchase – both options are possible!

After purchasing the property:

1.  Plan your management if you want to rent the apartment and become the owner of the property
2.  Regular inspections to maintain property value
3.  Optimize your taxes with the help of a local tax advisor
4.  Monitor the local market for future investment decisions

Summary

 Buying property in Cyprus in 2025 is a unique investment opportunity. The combination of record property sales (the highest in 17 years), stable property value growth prospects (5-10% annually), a favorable tax regime, and full legal security as an EU member make the island one of the most attractive real estate markets in Europe for real estate investment.

Key advantages of buying property in Cyprus:

•  CIT 12.5% for companies in Cyprus – one of the lowest in Europe
•  Possibility of conducting international business from a Cypriot company
• High rental yields (up to 12% per year)
• Stable growth in property values
• 300+ days of sunshine a year on an island with beautiful beaches
•  Developed business infrastructure and connections with Europe

 The best time to invest is NOW – the sooner you invest in buying property or establishing a business in Cyprus, the more you can save from rising prices. The best deals on houses and apartments are disappearing in a matter of days, and the real estate market shows that this upward trend will continue for years to come. Cyprus real estate is an excellent option for any investor and entrepreneur seeking a Cyprus residence permit or simply a solid investment in real estate abroad combined with the benefits of running a company in Cyprus.