Property as an Investment in Cyprus

Short answer: a property bought in Cyprus as an investment is a bet on the price at which you can sell, not on a monthly income. We do not offer or manage lets, so this page does not cover them. The numbers that decide the outcome are the costs of entry and exit, the price per m² against the area, the stage of the project and the supply coming to the market.

The price you pay compared with the area

The median new-build apartment costs €4,218 per m² in Larnaca, €5,100 in Paphos and €5,564 in Limassol (6 November 2026, before VAT). Compare any project with the median of its area before you reserve; the area tables are in Property for Sale in Larnaca, Property for Sale in Paphos and Property for Sale in Limassol. Prices rose 7.9% in the year to the second quarter of 2026 on the official index, but permits for 8,978 homes in January to May 2026 were 63.7% more than a year earlier, and the supply risk is the one analysts point to; see the market figures.

Entry costs and exit costs: a worked break-even

On a €300,000 new-build at 19% VAT you pay €300,000 + €57,000 VAT + €3,570 for a lawyer (1% plus VAT) = €360,570, before Land Registry charges. A resale between private persons carries no VAT, so the resale price must rise to about €360,570 before you have recovered the amount paid, and a little more to cover the 0.4% levy on the sale price: €360,570 ÷ (1 − 0.004) = €362,018, before the agent's fee. At the 5% rate, available only for a main residence, the cost is €318,570.

Selling is taxed at 20% on the gain after inflation indexation and a lifetime exemption of €30,000 (€150,000 on a main residence you have lived in for five years); the worked example with net proceeds is in selling property in Cyprus. Transfer fees, VAT and legal fees on the way in are itemised in the cost of buying property in Cyprus.

Off plan, under construction or ready

Of the 1,994 homes with a stage on file, 955 are off plan, 928 are under construction and 111 are ready. An off-plan buyer typically gets a 10% to 20% discount against a finished equivalent and carries the completion risk; see Cyprus off-plan deposit protection and Off-Plan Properties in Cyprus. Check the developer using how to vet a developer in Cyprus.