In May 2024, the Gallup advisory and analytics company asked Americans where they would prefer to invest long-term. A resounding 36% chose real estate. If you’re exploring opportunities in the European property market, this guide is for you. We’ll explain how to purchase property in Cyprus and secure European residency.
Relocating to Europe Through Property Investment
Investing in European real estate is more than just a way to safeguard and grow your wealth — a pathway to a new lifestyle. This prospect has become even more appealing for many Americans following the recent U.S. elections.
Several European countries offer Golden Visa programmes, which grant residency in exchange for investment in their economies. Cyprus’s programme is among the best, offering exceptional opportunities to secure a 10-year permanent residency for an investment of at least €300,000 in real estate.
The application can also include:
- A spouse or partner (in the case of a partner, you’ll need to formalise a civil union in Cyprus);
- Children under 25, provided their living expenses are primarily covered by the parents.
Why Cyprus?
As a new resident, you’ll enjoy access to a large English-speaking community, top-tier British and international schools, favourable business tax rates, and affordable costs for everything from fresh fruit to yacht berths.
For €300,000–€350,000, you could purchase:
A 2-3 bedroom townhouse with a private or shared pool and a lush garden near Paphos Airport is a prime choice for tourists or entrepreneurs frequently travelling abroad.
Bask in abundant natural light that floods each contemporary living space. Expansive windows frame picturesque views while inviting the outdoors in. Step onto your elegant terrace and private garden, overlooking either the inviting pool or the communal gardens – a delightful spot for leisurely alfresco meals. Additionally, every villa boasts a spacious balcony, a serene retreat to savor the stunning surroundings.
2 bedrooms
89 - 147 + plot 85 - 180 m²
Ready to move
A 2-4 bedroom apartment in Nicosia, offering modern, energy-efficient housing in a vibrant area—ideal for long-term rental demand among local professionals.
This residence offers a unique combination of comfort, style, and convenience, making it an ideal choice for those seeking a modern and luxurious living experience.
2 bedrooms
123 - 207 m²
6-8%
Eligible for a visa program
Only newly constructed properties from developers qualify for the Cyprus residency programme — a benefit, not a limitation. As an EU country, Cyprus enforces strict regulations on developers, ensuring new properties are energy-efficient, earthquake-resistant, and designed for comfort and safety. Whether you’re looking for rental income or a home for yourself, these properties are built to high standards.
Residency by investment in Cyprus is available only to families with a stable income from abroad, as the program doesn’t grant a work permit. Applicants must demonstrate an annual income of at least €50,000. However, investors can register a business in Cyprus and generate passive income by renting out their properties.
You can even sell your property, provided they reinvest in another that meets the programme’s criteria. This flexibility allows you to secure a steady income and a European “plan B”—a crucial advantage in today’s uncertain financial and political climate. The residency permit is valid for 10 years and can be renewed indefinitely if you retain your investment.
Can one obtain Cyprus citizenship by investing in higher-value real estate? Not through a fast-track process. To become a citizen, you must spend around eight years living on the island. However, this isn’t possible without investor residency or another residence permit. With an American passport, you’re limited to staying in Cyprus for just 90 days within any six months — far too short for anyone considering relocation.
Cyprus Real Estate Market: Statistics and Trends
A small Mediterranean island located midway between Turkey and Israel, Cyprus offers a unique blend of warm Middle Eastern climate and European lifestyle. Every year, it welcomes millions of visitors — over 4 million in 2024 alone. With its sunny weather, beautiful beaches, and affordable tavern prices, Cyprus has become a magnet for retirees from Northern Europe, digital nomads, and expatriates. Moreover, its status as a European “Silicon Valley”, with the lowest corporate taxes in the EU, attracts venture capitalists, startup founders, and developers.
Local real estate agents estimate that in 2024, over 345,000 foreigners relocated to Cyprus with permanent residency — equivalent to more than one-fifth of the island’s population. This steady influx of tourists and expatriates ensures consistent demand for both short-term holiday lets and long-term residential rentals.
Key Insights from the Cyprus Property Market
2024 was a record year for the Cyprus property market with 15,797 sales contracts, 1.5% higher than in 2023. Despite global economic fluctuations and strict rules in regulating transactions for foreign investors, the market has been growing steadily.
The average property value in Cyprus in 2024 increased by 8% (adjusted for inflation by 5%). This growth has allowed Cyprus to take a place in the top 10 markets in the European Union in terms of the rate of increase in the price of residential property.
Foreign investors have traditionally shown a high interest in Paphos, with 65% of total transactions. Increased interest was also noted in Nicosia, Famagusta and Larnaca.
Experts at Astons estimate rental yields for apartments or houses in Cyprus to range between 3% and 7% annually, depending on location and property type. Our team can help you identify properties in high-demand areas, ensuring a solid return on investment.
Legal Requirements for Foreign Buyers
Cyprus does not restrict foreigners from purchasing real estate for personal or business use. While government approval is required for transactions, this is a straightforward process with the assistance of experienced Astons’ Cyprus office lawyers. We handle the paperwork on your behalf, requiring only your consent. The review process typically takes about a month. Buyers must demonstrate a clean legal record and transparent financial sources, and our experts conduct due diligence to minimise risks during government review.
Foreign individuals face some limitations on property ownership in Cyprus. Non-EU citizens can purchase:
- A plot of land up to 4,014 sq. m for building a private residence;
- Up to two residential, commercial or a mix of both properties.
Eligible properties include apartments in condominium complexes, standalone or community villas, offices, shops, warehouses, and production facilities. However, properties purchased under the permanent residency program must meet specific criteria. You may buy one or two properties in total. If you choose two, one must be a residential property (house or apartment), while the other can be a commercial space or another residential property. If you purchase a single property, it can be a house, an apartment, or an office.
Major cities, including the capital, Nicosia, and emerging coastal areas near luxury marinas, offer excellent investment opportunities.
As an island, Cyprus faces logistical challenges in sourcing construction materials. Therefore, purchasing ready-built villas is more cost-effective than investing in land and overseeing construction. Developers can reduce material costs through bulk orders, and most properties come unfurnished but fully finished with landscaped surroundings.
American laws place no restrictions on purchasing property abroad.
Ownership Costs
When purchasing real estate directly from a developer, VAT is added to the market price at a rate of 5% or 19% as a one-time payment to the government. The 5% rate applies to investors buying a house or apartment up to 130 square metres as their sole residence in Cyprus. This reduced rate is available to a family only once and for a single property. For 10 years, the property cannot be sold or rented out unless the owner pays the remaining 14% VAT to the government. After 10 years, the property can be freely sold or rented without any additional payments.
Other ownership costs are similar to, or slightly lower than, those in the United States:
- Municipal tax: Up to 0.2% of the property’s value annually.
- Utilities and maintenance: From €200–300 per month for small apartments without a pool; costs for villas are calculated individually.
- Internet and mobile services: From €75–100 per month.
- Home insurance: Starting at €500 per year, plus a one-time appraisal fee of 5–7% of the property’s value. Insurance is mandatory only for rental properties.
Cyprus has no federal taxes on property ownership, gifts, or inheritance. Rental income is taxed as general income, ranging from 0% to 35%. Income up to €19,500 per year is entirely tax-free. Additionally, up to 20% of annual rental income can be deducted for property maintenance costs when calculating taxable income.
You are not required to pay US taxes on foreign properties unless they generate income. Furthermore, expenses such as utilities and repairs for your Cyprus property may qualify for US tax deductions. If you purchase real estate through a Cyprus-registered company, you’ll only need to declare income from the business in your tax filings, provided you are its owner or shareholder.
Cyprus and the United States have a double taxation treaty, which allows you to claim a tax credit in the US if your tax obligations in Cyprus exceed those in the US. An experienced tax advisor can help you optimise your tax strategy based on your residence and income sources.
Astons helps obtain permanent residency and purchase property in Europe as seamlessly and efficiently as possible. Contact our US office to learn more about the Cyprus programme and explore alternative options tailored to your needs.
FAQ
What are the requirements for obtaining Cypriot residency through investment?
Obtaining Cypriot residency through investment requires that you invest at least €300,000 in newly constructed real estate, demonstrate an annual income of at least €50,000 from abroad (with additional amounts for a spouse or dependents), pass background checks while proving the legal source of your funds, and include your spouse and dependent children under 25 in the application, with the investment maintained for 10 years.
How can I invest in real estate in Cyprus?
What are the steps to obtain Cypriot citizenship?
Can I buy real estate in Cyprus as an American investor?
What is the cost of obtaining Cypriot citizenship through investment?
How can I acquire Cypriot citizenship by making an investment?
What are the benefits of investing in real estate on Cyprus for American investors?
