Investing in Cyprus property in 2026: prices, rental yields, taxes and the checks
Covers property in the Republic of Cyprus (Department of Lands and Surveys records). Not the north of the island. Updated .
Short answer
The Central Bank’s residential property price index, built from bank valuations, rose 8.5% in the year to Q2 2026 (via INDEX.cy). Annual rental yields were 5.51% for apartments and 3.01% for houses (RICS/KPMG, Q2 2026). From 2026 rent no longer carries the defence contribution (Andersen, Jan 2026). Nothing here is advice.
What prices and sales did
The Central Bank of Cyprus residential property price index, which is built from bank valuations, rose 8.5% in the year to the second quarter of 2026 (INDEX.cy, 25 Sep 2026). From January to September 2026 the Land Registry recorded 14,969 contracts of sale, against 13,173 a year earlier (Department of Lands and Surveys, 5 Oct 2026; Cyprus Mail, 7 Oct 2026). Contracts include land and all property types.
Rental yields
| Measure | Figure | Source |
|---|---|---|
| Apartments, rental yield, Q2 2026 | 5.51% | RICS/KPMG index, via Cyprus Business News, 8 Sep 2026 |
| Houses, rental yield, Q2 2026 | 3.01% | same |
| Holiday apartments / holiday homes, Q2 2026 | 5.82% / 2.85% | same |
| Limassol, all apartments, gross yield from asking prices and rents | 5.38% | Global Property Guide, Sep 2026 |
| Paphos, all apartments, gross yield from asking prices and rents | 5.33% | same |
| Nicosia, all apartments, gross yield from asking prices and rents | 4.72% | same |
The two sources measure differently and should not be mixed. Global Property Guide uses asking prices and rents from listings and says net yields are usually 1.5 to 2 points lower than gross (Global Property Guide, Sep 2026).
Taxes on rent and on selling
General information, not tax advice. Rent is taxed as income. From 1 January 2026 the special defence contribution on rent no longer applies (Andersen Cyprus, 13 Jan 2026), and RSM Cyprus describes a 20% deduction from gross rent for individuals (RSM Cyprus, modified 9 Mar 2026). The 2.65% health contribution also applies (Global Property Guide, Sep 2026).
Capital gains tax on Cyprus property is 20% of the gain. From 2026 the lifetime exemptions are €30,000 in general and €150,000 for the sale of a main residence (Andersen Cyprus, 13 Jan 2026; EY, 26 Feb 2026), if you lived there as your main home for at least five years (Demetriades Law, Jan 2026). Immovable property tax was abolished from 2017 (Global Property Guide, Sep 2026). Ask a tax adviser about your case.
Financing
New loans for house purchase carried an average interest rate of 4.16% in August 2026, up from 3.78% in July (Central Bank of Cyprus data, via Cyprus Mail, 5 Oct 2026).
Holiday lets
Self-catering homes need a licence from the Deputy Ministry of Tourism. On 6 May 2026, 8,464 properties were licensed (Audit Office, via Politis, 2 Jul 2026). The short-term rental industry association reported occupancy and prices 10 to 15% lower than a year earlier (Cyprus Mail, 18 Jul 2026). Licence rules: our villa checklist (Buying a villa in Cyprus: what to check).
Residence through investment
Non-EU investors can apply for permanent residence under Regulation 6(2) with an investment of at least €300,000 (excluding VAT), for homes a first sale from a developer, and an income from abroad of at least €50,000 a year, plus €15,000 for a spouse and €10,000 per child (Mondaq, 7 Mar 2025). Sources differ on how much must be paid when you apply (Zeno Legal, Jun 2026). Citizenship by investment ended on 1 November 2020 (Zeno Legal, Jun 2026).
Rules that may change
In 2024, buyers from outside the EU signed 27.35% of property sales (Audit Office, via Cyprus Mail, 23 Sep 2025). Bills to restrict purchases by non-EU buyers were still being drafted in September 2026 and none had become law (Cyprus Mail, 3 Sep 2026).
Check the building as well as the numbers
A yield assumes the home can be let without major repairs. The seven documents to ask for are in our checklist (7 documents to ask for before buying in Cyprus).
Have the condition of the home checked before you pay a deposit (Before you buy). Any contractor may price the same repair list.
Property Brief
The 7 documents for a home in Cyprus, what each shows, and the questions for your lawyer.
Sources
- Central Bank of Cyprus, Residential Property Price Index 2026 Q2 (PDF), checked 7 Oct 2026
- INDEX.cy, 25 Sep 2026: Cyprus property market sees 8.5% price growth in Q2 2026 (reporting the Central Bank of Cyprus RPPI, Q2 2026)
- Department of Lands and Surveys, Contracts of Sale 2025–2026 (PDF, monthly by district, dated 5 Oct 2026)
- Cyprus Mail, 7 Oct 2026: Limassol leads Cyprus property surge as sales near 15,000 (DLS data, September 2026)
- Cyprus Business News, 8 Sep 2026: RICS Cyprus Property Price Index with KPMG, Q2 2026
- Global Property Guide, Cyprus rental yields (updated Sep 2026; asking rents and asking prices from listings)
- Andersen Cyprus, Cyprus tax reform: comprehensive update effective from 1 January 2026 (13 Jan 2026)
- RSM Cyprus, overview of Cypriot real estate taxation (modified 9 Mar 2026)
- Global Property Guide, Cyprus taxes and costs (updated Sep 2026)
- EY Cyprus, Tax Legi, February 2026 (26 Feb 2026)
- Demetriades law firm, understanding capital gains tax in Cyprus (5 Jan 2026)
- Cyprus Mail, 5 Oct 2026: low deposit yields and rising mortgage costs squeeze Cyprus households (Central Bank data, August 2026)
- Politis, 2 Jul 2026: ghost accommodation in Cyprus exposed by audit of short-term rental platforms
- Cyprus Mail, 18 Jul 2026: short-term rentals see fall in Cyprus occupancy and prices (industry association figures)
- Mondaq (A.G. Erotocritou), 7 Mar 2025: fast-track permanent residence permit, Regulation 6(2)
- Zeno Legal (law firm), Cyprus permanent residency by investment 2026 (updated Jun 2026)
- Cyprus Mail, 23 Sep 2025: non-EU buyers purchase over 25% of Cyprus properties (Audit Office, sales in 2024)
- Cyprus Mail, 3 Sep 2026: government moves to restrict foreign property purchases
General information, not legal advice. Your lawyer interprets legal title; Etimo does not.
General information, not investment, tax or legal advice. Etimo does not value property or say what to buy.