Buying and Selling Property in Cyprus 2025: Complete Guide to Taxes and Permanent Residency Through Investment

Cyprus in 2025 continues to strengthen its position as one of the most attractive destinations for real estate investment and relocation within the European Union. This Mediterranean island offers a unique combination of economic stability, favorable tax climate, high quality of life, and strategic geographic location. Investors from around the world are attracted not only by the opportunity for profitable capital investment but also by the prospect of obtaining permanent residence in the EU. The process of buying or selling property, however, involves many legal and tax nuances that require deep understanding.

This guide is designed to provide you with comprehensive and up-to-date information for 2025. We will walk through the entire process step by step—from selecting a property to obtaining title ownership—detail all related taxes and fees, and thoroughly explain how real estate investment opens the path to obtaining Cyprus permanent resident status. By following this guide, you will be able to confidently navigate the Cyprus property market, avoid common mistakes, and make informed decisions to achieve your investment and life goals.

Introduction: Why Cyprus in 2025?

Cyprus's Appeal for Investors and Residents

Cyprus in 2025 represents not just a resort destination but a full-fledged international business hub. Its attractiveness is driven by several key factors. First, EU membership ensures political stability, a reliable legal system based on English common law, and investment security. Second, Cyprus's tax system is one of the most favorable in Europe, offering low corporate tax rates and various incentives for individuals. Third, high living standards, safety, quality international education, and healthcare make the island an ideal place for family living. Finally, the permanent residence program through real estate investment remains one of the fastest and most transparent in the EU, providing investors and their families with the right to indefinite residence.

What You Will Learn from This Guide

This guide is your comprehensive navigator through Cyprus's real estate market in 2025. We have structured the information to give you a complete understanding of each transaction stage and related processes.

• Market analysis: We'll examine current trends, provide forecasts, and highlight the most promising regions for investment.
• Purchase process: You'll receive step-by-step instructions covering all actions from property selection to ownership registration.
• Taxation: We'll detail all taxes and fees you'll encounter when buying, owning, and selling property, including VAT, stamp duty, and title transfer fees.
• Permanent residence program: You'll learn all requirements, conditions, and benefits of obtaining permanent residence through real estate investment.

Our goal is to arm you with the knowledge necessary for a safe and profitable transaction.

Cyprus Real Estate Market Overview 2025

Current Trends and 2025 Forecasts

Cyprus's real estate market in 2025 demonstrates steady growth driven by high domestic and international demand. A key trend is the continued influx of foreign companies, especially from IT, fintech, and shipping sectors, relocating their offices and employees to the island. This creates increased demand for both commercial and residential property, particularly in the rental segment.

Forecasts for 2025 remain positive. Moderate price growth is expected, especially for new, energy-efficient properties in developed urban areas. The luxury property market also maintains its appeal for wealthy investors seeking assets for portfolio diversification and obtaining permanent residence. Government initiatives for infrastructure development, including marinas, golf courses, and technology parks, continue to stimulate investment activity.

Popular Investment Regions

Choosing a region for investment in Cyprus depends on your goals: permanent residence, vacation, or rental income.

• Limassol: The island's cosmopolitan business center with the highest rental demand and property prices. Ideal for investing in rental apartments and luxury units in high-rise buildings with sea views.
• Paphos: Cultural capital attracting tourists and expats seeking a more measured lifestyle. The market mainly features villas and townhouses. Perfect for buying a vacation home or permanent residence.
• Nicosia: Capital and administrative center. The market is mainly oriented toward locals and those working in government and corporate structures. Rental demand is stable.
• Larnaca: Actively developing city with an international airport and a large-scale marina and port reconstruction project. Offers more affordable prices compared to Limassol and has significant growth potential.
• Ayia Napa and Protaras: Popular tourist resorts ideal for investing in property for short-term summer rental.

Types of Available Property

Cyprus offers a wide range of properties to meet any requirements:

• Apartments: The most popular option for investment in urban centers.
• Villas: Detached houses with private pools and gardens.
• Townhouses: Houses in complexes with shared infrastructure.
• Off-Plan Properties: Properties under construction.
• Commercial Property: Offices, shops, warehouses.
• Land Plots: Land purchase for subsequent construction, requiring verification of zoning and permits.

Buying Property in Cyprus: Step-by-Step Guide (2025)

The property purchase process in Cyprus is clearly regulated and secure when all procedures are followed. It is recommended to hire an independent lawyer representing your interests.

Purchasing Secondary Market Property with Separate Title

A written contract is not formally required under Cyprus law if the transaction is simple and paid on the transfer day, but in practice, it is strongly recommended because:

• it fixes the price, terms, and deadlines,
• allows stamp duty payment,
• enables contract registration with the Land Registry and obtains "specific performance" rights (i.e., protection against resale).

For ownership transfer, the buyer must provide:

• passport/ID,
• stamped contract copy (if available),
• transfer fee payment receipt (if applicable),
• property acquisition permit (for foreign buyers),
• company incorporation documents (if buyer is a legal entity).

Both parties (or their representatives) must personally attend the Land Registry on transfer day; online transfer is not provided. Tax certificates and stamped documents must be presented.

If the property has a mortgage or other encumbrance, it must be removed before transfer, or the bank must issue a waiver and attend the transfer—otherwise the transaction cannot proceed.

VAT on secondary property with separate title previously used is not charged; instead, transfer fees are paid.

Purchasing New or Under-Construction Property

The transaction requires thorough document verification. The buyer must ensure:

• who owns the land,
• whether other contracts are registered for the same property,
• whether there's a mortgage on the plot and if the bank provides partial release for the specific property,
• whether construction and occupancy permits have been obtained,
• whether approved plans and specifications exist for the specific apartment or house.

A preliminary agreement (reservation) is not mandatory but often used to secure the property during verification; usually accompanied by a small deposit which may be non-refundable.

Payments typically occur in stages—depending on construction phases; this must be clearly specified in the contract.

Separate titles for new properties are issued 1–5 years after project completion. Until then, the registered sales contract is the buyer's protection.

VAT liability arises for the developer, and the buyer pays VAT per invoice.

Purchasing Land

Request a Land Registry extract to confirm:

• owner,
• presence of mortgages and liens,
• absence of other registered contracts.

Check urban planning zoning: building coefficient, permitted use (residential, agricultural, tourist), road and utility access.

Foreign buyers must obtain Council of Ministers' permission to purchase land.

Purchasing a Company Owning Property

An alternative to direct purchase is acquiring shares of a company holding property on its balance sheet.

Verification is conducted at two levels:

1. Corporate: charter documents, directors, shares, encumbrances, tax status.
2. Property: title, mortgages, permits, taxes.

The share purchase agreement must contain warranties and indemnities regarding:

• company's property ownership,
• absence of debts and tax obligations,
• absence of third parties with rights to the property.

This method may reduce transfer fees but requires separate tax verification.

Selling Property or Land

The seller must pay all taxes and utility bills in advance and obtain necessary certificates. After this, the registry schedules a transfer date.

The same procedure applies to land sales: clear title, no encumbrances, current zoning data.

If a mortgage exists, the bank must participate in the transaction or issue a waiver.

Taxes and Fees When Buying Property in Cyprus

Transfer Fees

Paid by the buyer on transfer day at the Land Registry cashier. Transfer is impossible without payment.

Calculation:

• 3% on first €85,000,
• 5% on €85,001–€170,000,
• 8% on amounts over €170,000.

A 50% discount applies to the total amount. The registry may reassess the property if the stated price is undervalued.

If VAT was charged on the sale (usually for new builds), transfer fees are not paid.

Exemptions exist for family and intra-group transfers.

Stamp Duty

If parties signed a sales contract, it must be stamped within 30 days of signing (or import to Cyprus if signed abroad). Without this, the registry won't accept it for registration.

Rates:

• 0% on first €5,000,
• 0.15% on €5,001–€170,000,
• 0.20% on amounts over €170,000,
• maximum €20,000 per contract.

Usually stamp duty is paid by the buyer unless otherwise stipulated in the contract.

Due Diligence

Minimum actions:

• request title copy and registry extract,
• check for mortgages, arrests, and previously registered contracts,
• verify urban planning permits,
• inspect actual property condition,
• property valuation (if purchasing with financing).

Contract registration with the registry creates an encumbrance in the buyer's favor and blocks resale possibility.

Permanent Residence Through Real Estate Investment

Minimum investment amount—€300,000 + VAT in new residential property from a developer. Commercial property is permitted, but the applicant must also have accommodation in Cyprus.

Funds must arrive from abroad to the seller's Cypriot bank account.

Minimum verified income: €50,000 per year for the main applicant + €15,000 for spouse + €10,000 for each child. Clean criminal record required.

When selling the property, to maintain status, another qualifying asset must be acquired.

5% Preferential VAT Rate for Primary Residence

Applies only to the family's first and primary residence, after tax authority approval. The developer may issue invoices with 5% VAT only after obtaining permission.

The benefit is valid for 10 years. If sold, rented, or primary residence changes before this period, proportional benefit repayment (14% difference) is required.

Cannot be used twice for one household. After 10 years, repeat application is possible.

Competent authority—district VAT office of the Tax Department.