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Why Choose Cyprus for Property Investment
Investing in Cyprus property in 2024 is a very profitable venture that provides countless benefits. Cyprus has emerged as a hotspot for global investors, offering a stable real estate market, favourable tax incentives, and a strategic location bridging Europe, Asia, and Africa. The island’s booming tourism sector and ongoing infrastructure developments further amplify its appeal, making it an ideal destination for those seeking both lifestyle and financial gains.
Types of Real Estate Investments
There are various types of real estate to choose from, for Cyprus property investment.
- Apartments: Ideal for individuals or families looking for a comfortable living space in urban or suburban areas.
- Villas and Houses: Often preferred by those seeking more space, privacy, and luxury, especially in coastal or scenic locations.
- Office Spaces: Suitable for businesses looking to establish a presence in key commercial areas.
- Retail Spaces: Shops and storefronts in bustling areas for businesses targeting local or tourist customers.
- Industrial Properties: Warehouses and manufacturing facilities for industries requiring space for production and storage.
- Development Land: Purchase of land for future development, capitalizing on potential value appreciation.
- Agricultural Land: Investment in areas suitable for farming or agricultural activities.
- Hotels and Resorts: Investment in the hospitality sector to cater to the island’s growing tourism industry.
- Holiday Apartments: Rental properties designed to attract short-term tourists and vacationers.
In which cities to choose real estate for investment
Selecting the right city for your next Cyprus property investment is a pivotal decision for any investor. It’s crucial to meticulously assess the unique advantages each city offers and make a well-informed choice. Feel free to reach out to us directly for personalized guidance and information on your upcoming investment. We’re here to assist you in making the optimal move for your financial goals.
- Capital: Nicosia is the capital and the largest city in Cyprus.
- Cultural Hub: Rich in history and culture, with archaeological sites, museums, and traditional neighbourhoods.
- Business Center: A significant business and financial centre, hosting corporate offices and government institutions.
- International Airport: Larnaca is home to Cyprus’s main international airport, providing easy access to the island.
- Beaches: Features beautiful beaches, such as Finikoudes, and a lively waterfront area.
- Cultural Sites: Boasts historical sites like the Church of Saint Lazarus and the Larnaca Castle.
- Economic Hub: Limassol is a major economic and shipping hub, attracting business and professionals.
- Marina and Seafront: Known for its modern marina, vibrant seafront, and cosmopolitan atmosphere.
- Family-Friendly: Offers good schools, parks, and family-oriented amenities.
- Historical Significance: Paphos is known for its archaeological sites, including the Tombs of the Kings and the Paphos Archaeological Park.
- Tourist Destination: A popular tourist destination with a picturesque harbor and a mix of historical and modern attractions.
- Family Living: Offers a more relaxed lifestyle, making it suitable for families and retirees.
- Education: Home to various educational institutions and the first University of Paphos, the Neapolis University Pafos.
- Beachfront Properties: Investors have the opportunity to tap into the demand for an unparalleled coastal lifestyle.
Pricing of Properties and Taxes
The pricing of properties in each city across Cyprus is dynamic, influenced by factors such as location, amenities, and the buyer’s objectives. Whether one seeks a property for 100,000 euros or a luxury residence exceeding a million euros, the diverse real estate landscape caters to a range of budgets and preferences. Additionally, it’s noteworthy that investment programs, such as citizenship initiatives, can impact property prices in specific areas, adding an extra layer of consideration for potential buyers.
Have a look at our investments section.
Property buyers in Cyprus are subject to the payment of value-added tax on new constructions or transfer tax for resale properties, along with additional associated fees. Costs ranging from 3.25% – 20.2% of the purchase agreement value. For new buildings the VAT ranges from 14% – 19%, and the reduced rate applies to housing of less than 250m². For resale properties the VAT ranges from 3% – 8% depending on the transaction amount.
An annual tax is paid by owners of a property at a progressive rate of 0% – 1.9%, of the cadastral property value. Moreover, additional monthly costs range from €70 – €250 for water supply, electricity, heating and garbage collection and an average of €50 for internet, TV, and telephone.
Although the Cyprus Investment Programme ended in late November last year, the Cyprus Permanent Residence Programme is still ongoing. By investing a minimum of €300,000 on a property in Cyprus, an individual could become eligible for a Permanent Residency Card in Cyprus, granting them a lifetime of permanent residency rights on the island as well as ease of travel throughout the European Union. Holders of a Permanent Residence Card in Cyprus could even be granted citizenship in Cyprus following 7 years of continued permanent residence.
Process of Buying Property in Cyprus
Choosing your Cyprus property investment can be challenging. Below are some steps you can take to feel more confident about your next move.
Research and Planning:
- Conduct thorough research on the real estate market in Cyprus, considering factors like location, property types, and budget.
- Determine the purpose of the purchase, whether for residency, investment, or vacation home.
Engage a Real Estate Agent:
- Enlist the services of a reputable real estate agent, preferably one with local expertise, to assist in property search and negotiations.
- Explore available properties with the agent, considering preferences and budget constraints.
- Perform due diligence on selected properties, including title searches and property inspections.
Negotiation and Offer:
- Once a suitable property is identified, negotiate the terms and price with the seller through the agent.
- Formalize the offer in writing, specifying conditions and timelines.
- Engage a qualified lawyer specializing in real estate transactions to oversee the legal aspects.
- The lawyer will thoroughly examine property documentation, ensuring a clear title and compliance with regulations.
- Upon agreement, sign a reservation agreement and pay a reservation fee (usually 1-2% of the property price) to secure the property while legal processes are underway.
Contract of Sale:
- Sign the Contract of Sale, detailing the terms and conditions of the property transfer.
- Pay a percentage of the property price, typically around 30%, upon signing the contract.
Permit Approval (if applicable):
- Non-EU buyers may need to obtain a permit from the Council of Ministers, which is facilitated by the seller or agent.
- Upon completion of legal procedures and obtaining necessary permits, complete the final payment.
- Pay any outstanding fees, taxes, and the remaining balance of the property price.
- Complete the property transfer at the Land Registry Office, where the ownership is officially transferred to the buyer.
Title Deed Transfer:
- The final step involves the issuance of the Title Deed, indicating full ownership of the property. This process may take some time.
Irresistibly High Return on Investment
Cyprus stands as a leading global holiday spot, attracting more tourists annually than the island’s population, highlighting its status as a dominant force in the tourism industry. This influx of visitors, surpassing the local population by a considerable amount, underscores the Mediterranean island’s appeal as a tourist magnet.
Millions of tourists visit yearly, and the global holiday rental market rapidly growing. A property owner in Cyprus could easily opt to rent their property if they are not enjoying it. This could turn out to be an enviable revenue and an irresistibly high return on investment.
Below there is a video of the sales overview (Instagram Post) in Cyprus from 2016-2023.
As you embark on your Cyprus property investment journey, the possibilities are as vast as the Mediterranean horizon. From seaside retreats to urban havens, the diverse real estate landscape caters to every investor’s dream. Trust in the expertise of local professionals to guide you seamlessly through the process.