Why Invest in Cyprus Real Estate?
Cyprus property is worth considering for those seeking good investment options in the European Union.
Buying real estate in Cyprus offers low corporate and property taxes, European Union access, and provides political, economic, and financial stability.
Explore this beautiful island and discover why Cyprus is the perfect real estate investment in 2025.
Financial Incentives and Tax Benefits.
Cyprus offers attractive tax benefits for international real estate buyers. Low property and income tax rates, exemptions on capital gains tax (after five years of ownership), no inheritance tax, and attractive corporate tax rates incentivize investors.
Permanent Residency
Tax Incentives
Double Taxation
EU Membership
If you invest in property in Cyprus through a company, there are specific tax considerations:
Corporate Tax: Companies in Cyprus are subject to a corporate tax rate of 12.5% on their profits, which includes rental income from properties.
Rental Income: Income earned from renting out property is taxed at the corporate tax rate. Companies can deduct allowable expenses related to property management and maintenance.
Capital Gains Tax: When selling a property, companies are subject to capital gains tax on the profit from the sale, with the rate currently at 20%.
Value Added Tax (VAT): If the property is newly built, it may be subject to VAT, typically at a rate of 19%. However, there are often reduced rates or exemptions depending on the specific circumstances.
A Stable and Growing Economy
The Cypriot economy is experiencing consistent GDP growth, driven by thriving services and real estate sectors. This stability makes Cyprus an attractive destination for property investors.
Cyprus offers potential investors attractive tax rates combined with access to the EU. Property owners pay an annual tax at a progressive rate of 0% to 1.9% of the cadastral value. Additionally, the low corporation tax rate of 12.5%, one of the lowest in the EU, is highly favorable for investors
Access to European Union markets and favorable trade agreements creates promising opportunities for international commercial property investors, according to the Cyprus Investment Promotion Agency (CIPA).
Safety and Security
Safety and security are important considerations for international property buyers. Cyprus ranks among the safest destinations in Europe. Cyprus also has favorable property tax, giving an advantage over many other EU countries.
Quality education in international schools further enhances Cyprus's appeal for expat families. This also provides passive income possibilities as EU membership has led to an influx of individuals and companies seeking to utilize the skilled workforce.