Investment and purchase of property in Cyprus

Since 1992, Feod Group has been providing a wide range of immigration, corporate and legal services in Cyprus and other EU countries

If you are in Cyprus and you need our advice or support for your case, leave us a request or call the Feod Group office in Larnaca +357 96 345 275 (Viber/WhatsApp/Telegram)

 

Property Investments in Cyprus

 

Cyprus – has an ideal strategic location, developed infrastructure, attractive taxation, high quality of life, excellent healthcare and education system, which are key reasons for moving and living on the island, but also form the basis for investing in Cyprus.

One of the most preferred investment instruments is the purchase of real estate in Cyprus, since many families are actively searching for a safe haven for relocation and permanent residence, or a profitable investment and receiving permanent passive income, and Cyprus provides all these opportunities.

Today, real estate in Cyprus is one of the most profitable investments in Europe. With relatively low average prices per square meter, the profitability of real estate in Cyprus reaches about 7% per annum.

📌 Real estate experts consider Cyprus the most promising and profitable European market in the coming years.

This is due to stable and attractive prices, incredible variety of properties, preferential taxation, as well as the influx of new infrastructure projects and government initiatives to strengthen the real estate sector.

Benefits of investing in Cyprus property in 2024

 

Investing in Cyprus real estate provides unique opportunities and benefits for investors.

According to a report by the Cyprus Securities Commission, approximately 14% of all investments on the island are directed towards real estate. This is due to a stable rise in prices, high demand for rentals, the arrival of new infrastructure projects and the availability of programs for obtaining permanent residence. All these factors make Cyprus an attractive destination for investors seeking high returns and long-term growth prospects for their investments.

Key benefits of investing in real estate in Cyprus:

✅ Membership in the European Union

Cyprus has been a member of the European Union since 2004, which provides stability and favorable conditions for investors.

✅ Strong legal framework

The local legal framework is very strong, based on British law and is widely recognized as a user-friendly and efficient system, understandable to investors, and fully compliant with EU requirements, regulations and directives.

Favorable price-profitability ratio

The cost of real estate in Cyprus is relatively low compared to other EU countries, while Cypriot real estate shows the highest yield in the European Union, averaging 7-10% per annum.

Low tax jurisdiction

Cyprus is a low-tax jurisdiction, which allows investors and their businesses to effectively optimize taxes.

Safe environment

Cyprus offers one of the lowest crime rates in the EU, ensuring safety for your loved ones and your investments.

No annual property tax

Investors are not required to pay an annual tax on property ownership in Cyprus, which reduces the financial burden.

✅ Possibility of obtaining a residence permit

Real estate investors in Cyprus have a chance to obtain a residence permit or permanent residence permit for themselves and family members.

✅ Favorable climate and high flow of tourists

The warm and mild climate with 300 sunny days a year creates comfortable conditions for living and recreation throughout the year, as well as good prospects for receiving passive income by renting out real estate.

Types of property in Cyprus

Cyprus offers a large selection of real estate, giving investors the opportunity to choose properties that suit their budget and goals. The variety of property types on the island provide promising investments based on various factors.

Residential property in Cyprus

Buying a home in Cyprus is a promising investment with several advantages. First of all, if you have plans for permanent residence in Cyprus, purchasing your own home becomes a more profitable option. Because having your own home or apartment in Cyprus provides stability and comfort, creating a unique space that suits individual needs and preferences.

Also, purchasing residential property in sought-after areas of Cyprus can provide stable rental income, which is attractive to investors seeking passive income.

Apartments, villas and townhouses are the most popular types of housing, and prices depend on various factors such as location, proximity to the sea, transport accessibility and infrastructure.

Commercial real estate

Investing in commercial property in Cyprus offers many opportunities. Investments in office space, such as business centers and offices, are considered a promising type of investment.

The constant influx of international companies to the island creates increased demand for high quality office space, providing a long-term and stable source of income.

According to the latest data from the Cyprus branch of the Royal Institute of Chartered Surveyors (RICS), there has been a significant increase in prices, especially for office space.

Tourist properties

Tourist properties are becoming an attractive investment option in Cyprus. The development of tourism infrastructure, the attraction of international tourists and the dynamic growth of the hotel business make investments in hotels and hotel rooms attractive to investors, providing the opportunity to obtain a stable and long-term income.

In the first quarter of 2023, Cyprus continued to attract significant numbers of tourists, according to a report from the Cyprus Statistical Service. During this period, 393,893 tourists arrived on the island, which is 61% more than in the same period in 2022.

This increase in the number of tourists is clear evidence that foreign citizens view Cyprus as an attractive holiday destination. This not only strengthens the status of a tourist destination, but also creates favorable conditions for successful investments in tourism real estate.

Land plots for construction

In addition to the variety of types of real estate, Cyprus provides unique opportunities for investors seeking to purchase land for development purposes. Purchasing land for construction is considered one of the most promising investment options in 2024.

Read: Why it is now profitable to invest in land in Cyprus and real estate construction

The best regions to buy property in Cyprus

Limassol, Larnaca and Paphos are particularly sought-after areas for property purchases on the island, accounting for three quarters of all property purchases. These three cities and their surroundings cover 90% of the property market in Cyprus.

☑️ LARNACA

Larnaca, the third largest city in Cyprus, is today one of the most attractive areas for holiday, permanent residence and investment on the island.

This city has become a real magnet for foreign investment. Over the past few years, the construction of luxury hotels, modern office centers and comfortable residential complexes has been actively developing in Larnaca.

The variety of properties includes apartments, townhouses, luxury villas, commercial properties including office space, restaurants and shops. This provides investors with a wide range of choices to find the right property depending on their preferences and investment goals.

In addition, Larnaca also provides unique opportunities for investors wishing to purchase land for development purposes. This option opens up additional prospects for creating individual projects and adapting real estate to specific needs.

☑️ PAPHOS

The Paphos area is one of the key areas in the Cyprus property market, accounting for a significant share of transactions. Approximately 20%-25% of all property purchases and sales in Cyprus take place in Paphos, which underlines its importance as a promising investment market.

Paphos is an excellent choice for property investment, especially if you are interested in the tourism sector and intend to buy and rent a property. In addition, this city is ideal for those who are looking for a wonderful place for permanent residence with the whole family in Cyprus.

The variety of properties on offer in Paphos includes modern apartments in gated complexes with communal pools and parking, as well as family-friendly villas with stunning sea views, private pools, parking and even an electric car charging station. This provides potential investors with a wide range of choices to suit different needs and preferences.

☑️ LIMASSOL

Limassol occupies a central position as the business center of Cyprus, attracting the offices of many international corporations, IT companies, as well as legal, financial and consulting organizations. This creates high demand for real estate in this city.

From 30% to 35% of all real estate transactions in Cyprus take place in Limassol.

However, high levels of demand and limited supply are having an impact on property prices in Limassol. This dynamic has made the city not only a hub of business activity, but also one of the most expensive for property investment in Cyprus.

☑️ Other areas

The remaining areas of Cyprus such as Famagusta, Ayia Napa, Protaras and Paralimni are seeing modest but steady growth in the holiday home category. These small towns located in the Famagusta region have become not only a magnet for tourists, but also attractive spots for potential investors.

Real Estate Prices in Cyprus

Property prices in Cyprus vary significantly depending on various factors, including location, proximity to the sea, and infrastructure.

The average cost of residential real estate in Cyprus is 2,070 euros per square meter.

Read also: Real Estate Prices in Cyprus in 2024: Overview and Trends

Legal services of Feod Group and assistance in purchasing real estate in Cyprus

With the support of the international legal team of Feod Group, the entire process of purchasing real estate in Cyprus becomes as comfortable and safe as possible. We provide you with confidence that you will successfully go through all stages of purchasing property in Cyprus: from selection to obtaining ownership rights.

We have a permanent office in Larnaca and extensive experience in the Cyprus real estate sector.

A Cypriot lawyer is always present during negotiations with the developer, ensuring the best conditions for the client.

We offer properties both at the start of construction and those already ready for move-in and living.

We select objects that perfectly match the client’s budget and goals – be it investment or personal use.

We will request and review the documents of the real estate sellers before you pay the deposit; this service will not be provided to you by a real estate broker.

We pay attention not only to the object itself, but also to the infrastructure of the area, potential for resale or rental.

Our experts advise on personal tax issues for residents and non-residents, as well as taxes related to the acquisition of real estate.

Our specialists provide support in obtaining residence permits in Cyprus.

 

Why clients choose Feod Group

 

READ ALSO:

 

Investment in real estate in Cyprus - FAQ
What are the benefits of real estate in Cyprus?

Investing in Cyprus property will provide many opportunities for you and your family. You can receive passive income, or replenish your investment portfolio with a profitable investment, or obtain immigration status for your family and live in a safe and comfortable country of the European Union, or combine all the possibilities at once.

What is the procedure for buying property in Cyprus?

To buy property in Cyprus you have to go through four main steps:

Step 1 – Deposit to reserve an object

The amount depends on the value of the property and thus the property is removed from sale for a specified period.

Step 2 – Signing the purchase and sale agreement

Upon expiration of the reservation period, it is necessary to make an initial payment, which is about 30% -35% of the cost of the object (or depending on the terms of payment for a particular object).

Step 3 – Registration of the agreement with the Land Department

Within 30 days after paying the down payment, the contract must be registered with the Land Department, where the buyer pays stamp duty. At this stage, an application is also submitted to the Council of Ministers for approval.

purchase of real estate. Both procedures are carried out by our lawyer in Cyprus.

Step 4 – Pay the balance

The remaining 65% of the cost is paid by individual agreement.

How to obtain a residence permit in Cyprus when buying property?

You can obtain a residence permit in Cyprus through the purchase of real estate through the program for investors. To do this, you need to buy new Cyprus real estate with a minimum cost of 300 thousand euros. Cyprus Permanent Residence by Investment is one of the fastest and easiest programs for investors in Europe.

In addition to the investor, permanent residence can also be obtained for immediate relatives.

Read more about obtaining a residence permit through the purchase of Cypriot real estate or investment”

Article author

Anastasia Taran Head of Corporate Services
Ukraine
In 2013, she graduated in law from the National University «Odessa Law Academy» with honors and received a Master of Law degree. Anastasia Taran has experience in international and contract law, as well as corporate and tax law in Europe. Within the framework of Feod Group, she specializes i...
In 2013, she graduated in law from the National University «Odessa Law Academy» with honors and received a Master of Law degree. Anastasia Taran has experience in international and contract law, as well as corporate and tax law in Europe. Within the framework of Feod Group, she specializes in immigration and corporate law of European countries, particularly:
  • family and corporate immigration solutions.
  • establishing a business in Europe.
  • personal and corporate taxation in Europe.
  • opening accounts in European banks.
  • obtaining a tax resident status.
read more
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Why clients choose Feod Group

Since 1992, Feod Group has been providing a wide range of legal, business and immigration services in Europe, the USA and other countries of the world.

The company has accredited western lawyers, experts in various fields of law and jurisdictions of the world.

Having offices in Europe and the USA, Feod Group provides rapid paperwork and maximum customer comfort.

We provide our clients with related services, such as relocation and adaptation abroad, organizing family relocation abroad, enrollment of children in schools and many other services.

 

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