Buying land in Cyprus has become a popular destination and a significant trend in recent years.
In the first half of 2023, the share of land transactions amounted to 65.7% of all transactions (of which the purchase of land for development was 23.5%), the share of transactions for the purchase and sale of apartments was 18.9%, and houses were 15.3%. This confirms that both local and foreign buyers are actively investing in land in Cyprus.
Cyprus is very profitable in terms of investment in land; the island has excellent opportunities for permanent residence, recreation and business.
Why is it now profitable to invest in land in Cyprus and real estate construction?
✅ Developing real estate market
The real estate market in Cyprus is actively developing, providing a wide range of opportunities for investors. The growing demand for quality housing and infrastructure creates favorable conditions for the successful development of construction projects.
✅ Attractive land prices
Currently, land prices in Cyprus remain relatively affordable compared to other EU countries, providing investors with a unique opportunity to purchase promising land plots for future construction.
✅ Increase in cost
In Cyprus, the limited resource of available land makes it even more valuable and in demand. As demand for real estate increases, land values continue to rise, highlighting the attractiveness of this investment destination.
✅ Possibility to start the sales process immediately after purchasing the land
The advantage of purchasing land with a ready-made project and license is also that the buyer has the opportunity to begin the process of construction and sale simultaneously and immediately after purchasing the land plot. For example, in Larnaca, this trend of sales from stage 0 has been developing for more than 2 years, as the demand for housing exceeds supply, given the sharp increase in foreigners in Cyprus.
✅ Attractive tax conditions
Cyprus offers attractive tax conditions for investors and entrepreneurs. Low tax rates, especially for property and income taxes, provide additional incentives for those seeking to maximize their investment opportunities.
✅ Increased interest in tourism and relocation
Tourism in Cyprus is constantly growing, which makes real estate on the island in demand. In 2023, tourist arrivals to Cyprus increased by 32%, strengthening its reputation as a year-round holiday destination. Purchasing land in Cyprus for the construction of hotel apartments, villas or small apartment complexes provides an excellent opportunity for rental or resale, generating additional income.
✅ High potential for return on investment in Cyprus real estate
Investments in real estate in Cyprus can generate income on a monthly basis when renting them out (6% -8% per annum), as well as in the form of a net increase in value.
And short-term rentals can bring even higher profits – from 12 to 15%.
✅ Individual approach to construction
Investments in land plots in Cyprus will allow the investor to expand the choice of investment project as budget or luxury housing.
If you want to buy land for development in Cyprus, our company offers profitable opportunities. Our offers cover various areas of Cyprus including Paphos, Limassol, Larnaca.
Buying land in Cyprus through a company
Citizens of the European Union have the right to purchase land in Cyprus without restrictions. While the purchase of property in Cyprus by foreign citizens (non-EU citizens) has some restrictions.
Foreign citizens also have the right to purchase a plot of land, but the area of the plot is limited to 4,014 square meters per person. It should be noted that this restriction only applies if you are purchasing land as an individual.
However, foreign investors have the opportunity to bypass the plot size restriction by purchasing land through companies. If the plot is purchased in the name of a company, there are no restrictions on the size of the property.
LOW RISK PROJECTS IN CYPRUS
In addition, we are pleased to share some interesting updates on the construction business in Cyprus.
The government has recently introduced a more efficient application process for low-risk projects.
This means that in the future there will be no need to apply for a building permit for structures such as houses and apartment buildings consisting of 6-9 residential units.
This development indicates that in the near future we will be able to bypass the long waiting periods for construction project permits, which previously delayed the start of construction by 6 months to a year.
For example, with a budget of 500,000 euros, we have a unique investment proposal for the purchase of a plot of land in a prestigious area of Larnaca with an approved permit for the construction of a residential building with 6 apartments, including 2 penthouses on the top floors.
The buyer of the property has the right to start selling immediately after purchasing the land, the cost of which is 360,831 euros, including all fees.
Potential profit starts at 35%. The project implementation period is only 14 months.
If an investor begins selling apartments immediately after purchasing a plot of land, the rate of return will be more than 100%.
Buying a plot of land through a company and construction business in Cyprus
Starting a construction business in Cyprus involves several important steps. Below are the basic requirements and steps to ensure the successful launch of your construction business in Cyprus:
Legal support: Seek the services of a local lawyer who will organize all legal aspects and help you manage the project.
Careful location selection. Consider your goals: be it a commercial project, a residential complex or a detached home. Cyprus offers a variety of areas, each with unique features.
Registration of a company and opening of a bank account in accordance with all necessary legal requirements.
Buying land in Cyprus: after searching and approving a suitable plot, concluding a purchase and sale transaction.
Working with architects and engineers will help you develop a design that meets your needs and meets local building standards.
Permits: Obtain necessary planning and building permits.
Construction Partnership: Be careful when choosing a construction company. Make sure cost negotiations are structured and all agreements are clear.
Sales and Marketing: Start your real estate marketing and sales strategy as early as possible, even while waiting for permit approvals.
Our lawyers are ready to provide comprehensive support at all stages of your project: from careful selection of a land plot and preparation of the necessary documents, registration of your company to obtaining property rights.
Our services don't stop there - we also support you in managing your construction project.
We will provide you with professional assistance in carrying out successful operations for the sale of constructed objects, guaranteeing you comprehensive support throughout the entire path of your business project.
Contact us for a personal or online meeting!
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Professional assistance from our company in purchasing land in Cyprus
Our Cypriot and international team of lawyers and experts have over 30 years of experience in investment, corporate, immigration and tax planning.
By contacting us, you receive comprehensive services and security of your investments.
Whether you are looking to build a home for your family, an apartment building for investment or a complex of villas in Cyprus, we provide:
Selection of land plots with a building permit
Determination of the real market value of the site.
Preparation and verification of all necessary legal documents and contracts
Legal support for company registration in Cyprus and opening bank accounts
Assistance in obtaining property rights and registering the site with the relevant government agencies.
Detailed advice on tax issues related to land purchases, helping you optimize your tax obligations.
Our services also include Project management:
Design and Construction: Collaborate with architects and construction companies to develop designs and build on the acquired site.
Organization and control to ensure that the construction process meets standards and requirements.
Preparation for sale: After completion of construction, providing support in preparing the property for sale, including preparation of the necessary documentation.
Our experts are ready to provide advice on choosing a site, assistance in checking all the necessary documents and full support of the purchase and sale transaction process.
Purchasing land plots in Cyprus - FAQ
What types of land are there in Cyprus?
Land in Cyprus offers a variety of investment prospects with varying risks, returns and liquidity:
Residential plots: ideal for the construction of residential buildings. Today, the most popular cities for buying land to build a house in Cyprus are Larnaca, Paphos and Limassol.
Land for commercial purposes: suitable for business infrastructure, office and business centers.
Tourist areas: Excellent for visitor-oriented properties.
Industrial areas: intended for the construction of plants, factories, etc., and are located on the outskirts of cities, away from residential areas.
Agricultural land: used for farming
How much do land plots cost in Cyprus?
Prices for land plots vary greatly depending on various factors, including location, distance from the sea, accessibility of communications, and building density.
In Limassol, prices start from 600 € per 1 m² of building plot with permission and can reach thousands of euros, especially if the plot is close to the sea.
In Paphos and Larnaca you can also find a variety of plot options with different prices depending on their location and characteristics.
Prices for plots in Paphos and Larnaca before obtaining a building permit start from 100 per sq. m. m.
For example, you can buy a plot of land in Larnaca for residential development with a licensed construction project with a total construction area of 570 m² for 360, 381 €.
What factors can affect the cost of land in Cyprus?
The cost of land is influenced by several factors:
Purpose of the site: whether the site is intended for industrial construction, a housing complex or a tourist site.
Location: the most expensive and prestigious areas are located in coastal and central areas of cities closer to the coast.
Land area
Infrastructure development and transport accessibility
Read also: What is important to consider when buying land in Cyprus: recommendations from our experts
Elena Georghiou – Founder and Managing Director of Feod Group. Has two higher educations: the first at the Odessa State Polytechnic University, majoring in automation and computer engineering (1986) and second in the Moscow State Law Academy, majoring in law (1991). Has work experience in London i...
Elena Georghiou – Founder and Managing Director of Feod Group. Has two higher educations: the first at the Odessa State Polytechnic University, majoring in automation and computer engineering (1986) and second in the Moscow State Law Academy, majoring in law (1991). Has work experience in London immigration law firms. Is a regular participant in seminars and trainings on immigration, corporate and private law of the European Union. Elena Georghiou has more than 25 years of legal experience and heads the specialized Residency and Citizenship practice across European countries, UK and USA advising HNWIs and their families on:
immigration planning;
consultations on obtaining alternative (second) citizenship;
Residency and Citizenship by Investment;
business immigration;
preparation of appeals, working with complex immigration cases.
She advises individuals and corporate clients for wealth/business structuring and assets protection. Central to her Managerial role in the company she initiated and united high level lawyers and other top professionals around the word in order to provide Feod Group clients with bespoke level of legal and business services word wide, keeping the staff focused on the opportunities and challenges faced by each individual client. Speaks Russian, Ukrainian, English.
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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