Why Investing in Cyprus Real Estate Is Profitable

Demand for rentals in Cyprus is increasing — professionals, families, and students
from around the world are moving here. The climate, safety, and simple property
purchase rules make the island one of the most attractive places for investors.

• Apartment yields — 6–10% per year, depending on the city and rental format.
• Income in euros and stable demand all year round.
• Low taxes and transparent rules for property owners.
• Ability to rent long-term or short-term to tourists.

Where to Buy an Apartment for Rent

Each city in Cyprus has its own audience and level of profitability.
The key is to choose the right location and property type.

Limassol

The most in-demand city among foreigners and IT professionals.
High rental demand, properties are rented quickly and year-round.
Apartments in the center and near the sea bring on average up to 10% annual return
with proper management.

Larnaca

A growing city with new infrastructure and a low entry threshold.
Investors choose Larnaca for its affordable prices and steady tenant flow.
Average yield — 6–7% per year.

Paphos

A popular resort, especially among foreign buyers.
Apartments rent well during the tourist season and often all year.
Expected return — 6–8% annually.

Nicosia

The capital and business center of Cyprus.
Mostly rented by locals and students, demand is stable throughout the year.
Realistic yield — around 6%.

Which Rental Option to Choose: Long-Term or Short-Term

Both options work well in Cyprus. It depends on your time and investment goals.

• Long-term rental — stable income and minimal hassle.
  Best for busy investors and family apartments.
• Short-term rental — higher profit, especially in summer,
  but the property must be registered and requires active management.

Since 2024, all short-term rental properties must have a registration number
in the official government registry. The process is simple, done online, and costs
around €220 for three years.

Example of Income Calculation

An apartment in Limassol priced at €250,000 can bring about €2,000 per month in rent.
Annual income — €24,000. After maintenance and taxes, the net profit is around €20,000 —
which means a clean yield of 8–10% per year.
In Larnaca and Paphos, apartments are cheaper and rental prices are slightly lower,
so the average net yield is usually 6–8% annually.

Taxes and Expenses to Know

• Income tax — only for high incomes, the first €19,500 are tax-free.
• Medical contribution (GeSY) — 2.65% of rental income.
• Government property tax has been abolished.
• Short-term rental registration — €220 for three years.
• Maintenance and community fees — around €600–800 per year.

How to Choose the Right Property

• Buy 1–2-bedroom apartments — they rent out the easiest.
• Choose locations within 10–15 minutes from the sea or city center.
• Target net yield not lower than 6%.
• Check the legal status of the property before purchase.
• Plan management — independently or through an agency.

Conclusion

Investing in real estate in Cyprus is a reliable way to earn income in euros
and preserve your capital. In Limassol, you can earn up to 10% per year,
while in Larnaca and Paphos — 6–8%. The key is to choose the right city,
property, and rental strategy.