When you relocate to Cyprus, you can enjoy 300 days of sunshine each year, a high standard of living, good healthcare, and beautiful Blue Flag beaches. In addition to all these great reasons in favor of moving to Cyprus, there are also several tax advantages for real estate investors in Cyprus.
Knowing the best places to buy property on the island will ensure that your new life as a property owner in Cyprus pays off in the long term.
Why buy real estate in Cyprus
If you’re planning to move to Cyprus, you may be considering purchasing property there. Thorough research will be necessary to ensure you choose the right area and property type for you, your family, and your budget. Significant tax incentives for foreigners investing in property include reduced income taxes, exemption from Capital Gains tax, and inheritance taxes.
In 2013, the Cyprus Golden Visa program was introduced to help with the country’s economic development. This program is an excellent opportunity for those wanting to invest at least €300,000 ($330,000) in either 1-2 residential or non-residential properties. This enables the property buyer and their immediate family to automatically become eligible for permanent residency in the Republic of Cyprus, and thus EU residence.
Words of caution
Buying property in Cyprus should never be rushed. It’s important not to make a purchase based solely on emotional reasons; carefully consider its location and suitability to your individual needs. A thorough inspection of the property to identify any flaws or issues will prevent problems later on.
Avoid making a hasty offer and take the time to study the property market to get a good sense of prices. Once you’ve decided on a property, it’s crucial to obtain sound, independent legal advice. Also, ensure that your calculations include all the expenses you will incur.
The best locations to buy property in Cyprus
According to sales statistics, the most popular places for foreigners to buy property in Cyprus are Limassol and Paphos. Most houses in Cyprus sold to foreigners are on or near the coast, and many have a large terrace and private pool.
1. Limassol (Lemessos)
Limassol is the country’s second-largest city and has the largest selection of houses for sale in Cyprus. It’s an important industrial, cultural, and economic center, as well as the island’s largest port and a popular holiday resort.
Limassol is a bustling city with numerous activities for families, including a long stretch of coastline spanning more than two kilometers. It features an excellent multi-screen cinema, various sports clubs, and the stunning Roman theatre at Curium, which hosts music concerts and dramatic productions during the summer months.
The city also has several large annual events, including its wine festival. It offers excellent international schools with English instruction, such as the American Academy, which also has a primary school department.
Many popular residential areas are in the villages that fringe the city, including Erimi and Kolossi. Ayios Tychonas lies just east of Limassol and is a popular suburb, while Pareklissia, located to the north-east, has seen several new housing developments. Accommodation in the city tends to be in high-rise (by Cyprus standards!) apartment blocks. One of the most prestigious recent building projects in the city is the beautiful new marina with moorings, shops, and luxury housing.
In addition to its various residential areas, the city serves as the commercial focus of the country, with several foreign companies, especially shipping and forex companies, having offices in Limassol. International companies, including Microsoft, Oracle, SAP, and IBM, all have offices in Limassol, attracted by Cyprus’s strategic location between three continents. The city boasts several business parks, offering many commercial investment opportunities in real estate in Cyprus. Many foreigners decide to buy property in the city purely for investment purposes, and year-round, there is a good selection of houses for sale in Cyprus.
For those who want to be close to city amenities while enjoying traditional village life, the hill village of Pissouri, located to the west of Limassol, is the perfect answer. Some of the first large building projects in Cyprus were there, and the pretty villas remain popular purchases. Down the hill, near Pissouri Beach, the most recent building projects have been completed, including smaller villas that are ideal for retirees.
Limassol is situated equidistantly from Nicosia, Larnaca, and Paphos, with the international airports in Larnaca and Paphos both within easy reach. Several local cruise companies operate various-length cruises to the Greek Islands and mainland Greece.
Investing in property in Limassol is popular year-round, unlike in other parts of Cyprus. Investors have also seen some profit in recent years.
2. Paphos (Pafos)
Situated on the island’s western coast, Paphos has long been a popular retirement destination for expats. Some live in the heart of the old town in apartments or older houses, but most opt for the popular town of Peyia (Pegeia), located 15 km to the north of Paphos, which stands on a hillside overlooking the popular resort of Coral Bay. There, you’ll find numerous sizeable villas with pools and a strong expat community. Tala is another village close by and is almost as popular.
Three villages situated just inland from Paphos (5-7 kilometers) that are popular with foreigners are Konia, Marathounda, and Armou. The latter offers particularly stunning views over Paphos with its famous harbor on the horizon.
All these villages have traditional stone houses for sale at remarkably low prices for those who enjoy tackling a renovation project, but make sure you calculate costs carefully as it may not be such a bargain! The Paphos District undoubtedly has the best selection of traditional village houses for sale in Cyprus.
Paphos is ideal for retirees, with plenty of amenities, including shops, medical facilities, and good beaches. A main attraction is the presence of excellent golf courses, including the internationally acclaimed Aphrodite Hills, which lies halfway between Paphos and Limassol.
In addition to the golf course, there is an exclusive resort and residential development with a fast turnover of properties due to high demand. Secret Valley is another prestigious golf course and development adjacent to Aphrodite Hills. Each year, Paphos attracts opera lovers from all over Europe for the Paphos Aphrodite Festival, and the Paphos Marathon is a major sporting fixture.
Paphos has its own international airport and good road links to Limassol and the other cities. Finding work in Paphos can be difficult outside the tourist sector, so a number of younger expats commute daily to businesses in Limassol, which takes about one hour on the highway.
The Paphos District is the largest and extends as far as the northwestern coast. The picturesque fishing harbor of Latchi has become increasingly popular with foreign buyers in recent years due to several completed building projects. The properties have proven popular with retirees seeking a slower pace of life without the need for social clubs and various forms of entertainment.
3. Nicosia
Nicosia is the capital of the Republic of Cyprus and is situated inland. It’s primarily a working city with a rich culture. The only expats who tend to live there are those working in the city, and many of them rent apartments for the duration of their contracts. Investing in real estate in Nicosia can serve a growing population of working professionals who settle into the Cypriot capital.
4. Larnaca
Larnaca is situated on the southeastern coast and is home to the country’s main international airport. Larnaca is much smaller than Limassol and Paphos and is not as popular with foreign buyers, as many businesses close during the winter months. Expats moving to Larnaca typically tend to rent rather than buy.
5. Ayia Napa
This beautiful beach area is a popular vacation destination, especially for younger tourists, and thus it is a great location if you want to invest in a property with vacation rental income. On the other hand, Ayia Napa has limited appeal to some foreign buyers, as the resort tends to close down during the winter months.
While Limassol and Paphos are indeed the best places to buy property in Cyprus for various reasons, if you’re considering moving to Aphrodite’s Island, why not pay a visit to Cyprus and decide which location suits you best?
While the cities on Cyprus island are the most attractive, there’s much to be said for living in a small traditional village, if you prefer places where time is measured by the passing seasons, and evening entertainment is watching shooting stars.
