Innovative property investments
Investment Property in Cyprus
Buying Guide
Property Overview
Breaking from its mould
Traditionally, Cyprus property has been predominantly for retirement or holiday home purposes, but since the island joined the EU in 2004, the variety of property and buyer has grown.
Permission to buy
Properties are bought freehold, and the island’s property laws are based on the British system.
Non-Europeans are entitled to a freehold ownership of a villa, an apartment or a piece of land with a maximum area of 4,014m².
EU citizens are entitled to a freehold ownership of a villa or an apartment; they can also purchase as many plots of land as they wish.
You need a Council of Ministers Permit to buy property in Cyprus. This is not a resident’s permit but is essentially state permission to purchase property.
Strangely, it is usually granted several months after purchase, but you can live in the property whilst you await its arrival.
Europeans who do acquire a permanent or temporary resident’s permit can register as many properties as they want, provided they sign a confirmation to the government that they will stay in Cyprus for the following five years.
New home purchases
It’s worth noting that new home builders must charge 15% VAT on all properties where planning permission was granted after May 2004, when Cyprus joined the EU.
However, as long as you are buying from a major developer (or an agent that deals with major developers) then you are unlikely to be affected, as these companies still have plenty of land bought before that date.
Off-plan popular
Average prices are rising by around 10 to 20% per year, depending on property type.
Off-plan sales are very popular as buyers can expect significant capital gains during the purchase process.
There are worries, however, that the market is slowing in some of the most heavily developed areas, leading to a dip in prices in late 2006.
Places and prices
The main buying areas are Paphos in the west, Limassol in the south, Larnaca in the east and the central Troodos mountains.
The average house price in Cyprus as of September 2006 was 93,191 CYP (109,143 GBP) - an increase of 1.6% on the previous month, and a cumulative increase of 8.5% for the first nine months of 2006.
Key facts
- The island’s property laws are based on the British system
- Property market interest has diversified since the island joined the EU in 2004
- EU citizens are entitled to a freehold ownership of a villa or an apartment and as many plots of land as they wish (obtained with a Council of Ministers Permit)
- With a resident’s permit and commitment to stay for five years, EU citizens can register as many properties as they want
- To avoid the 15% VAT liable on properties granted planning permission after May 2004, buy from a major developer who will still have land bought before then
- Prices are rising on average 10 to 20% per year
- Off-plan sales are very popular for the gains obtainable during the purchase process
- The main buying areas are Paphos, Limassol, Larnaca and the central Troodos mountains
- The average house price in Cyprus as of September 2006 was 93,191 CYP (109,143 GBP)
Downloadable Reports and Documents
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