Residency in Cyprus Through Real Estate: Costs, Requirements, and What Buyers Actually Invest

By Irem Demirci

Residency in Cyprus Through Real Estate: The Facts

Cyprus offers one of the most straightforward residency-by-investment routes in the EU, and real estate is at the centre of it.

Unlike complicated visa systems, Cyprus connects property ownership directly to long-term residency, with clear financial thresholds and well-defined requirements.

Below are the key facts buyers usually want to know before making a decision.

1. Minimum Property Investment Amount

To qualify for Permanent Residency through real estate, the main requirement is:

  • Minimum property purchase:
  • €300,000 + VAT
  • The property must be new (purchased from a developer)

This €300,000 can be:

  • one single property, or
  • two new residential units from the same developer (under certain conditions)

The amount refers to the net price, excluding VAT.

2. VAT on Property Purchases

VAT depends on how the property is used:

  • 5% VAT
  • Applies if the property is used as the buyer’s primary residence (up to 200 sqm, subject to approval)
  • 19% VAT
  • Applies if the property is used as a secondary home or investment property

Example:

  • €300,000 property as a primary residence → VAT approx. €15,000
  • €300,000 property as a secondary residence → VAT approx. €57,000

Most residency applicants plan their purchase carefully to optimise VAT treatment.

3. Accepted Property Types

Eligible properties typically include:

  • new apartments
  • new houses or villas
  • townhouses
  • residential units within new developments

The property must be:

  • residential (not land only)
  • purchased from a developer
  • registered correctly under Cyprus land registry rules

Resale (second-hand) properties do not qualify for the permanent residency route.

4. Additional Financial Requirements

Beyond the property investment, applicants must demonstrate:

  • Stable annual income from abroad
  • Main applicant: €50,000 per year
  • Spouse: +€15,000
  • Each dependent child: +€10,000

This income must come from outside Cyprus (salary, dividends, business income, investments, pensions, etc.).

5. What Residency You Get

With this route, buyers receive:

  • Permanent residency in Cyprus
  • Right to live in Cyprus indefinitely
  • Residency valid for the whole family (spouse and dependent children)
  • No requirement to live in Cyprus full-time

To maintain residency, holders typically need to:

  • visit Cyprus at least once every two years

There is no obligation to become tax resident unless you choose to.

6. Typical Total Budget Buyers Plan

In practice, most buyers plan a total budget (property + costs) of:

  • €330,000 - €380,000 for apartments
  • €400,000 - €600,000+ for villas, depending on location

Additional costs usually include:

  • VAT
  • legal fees (approx. 1-1.5%)
  • land registry and administrative fees
  • property insurance

7. Popular Areas for Residency Buyers

Residency-focused buyers tend to prefer:

  • Paphos - lower entry prices, strong lifestyle appeal
  • Limassol outskirts - higher prices, more business-driven
  • Larnaca - balanced option with airport proximity

Paphos remains one of the most popular choices due to:

  • availability of new developments
  • lower price per sqm
  • strong year-round livability

8. Timeline: How Long Does It Take?

From property purchase to residency approval:

  • Property purchase: 1-2 months
  • Residency application submission: immediately after purchase
  • Approval timeline: typically 2-4 months

Buyers can usually stay in Cyprus legally while the application is under review.

9. Why Buyers Choose Cyprus Over Other EU Options

Compared to similar European programs, Cyprus stands out because:

  • lower entry price than many alternatives
  • permanent residency (not temporary)
  • no mandatory full-time relocation
  • English widely used
  • property remains a tangible asset

This makes Cyprus especially attractive for:

  • families
  • investors seeking EU stability
  • remote workers
  • retirees
  • globally mobile individuals

Cyprus residency through real estate is not a vague concept - it is a clearly priced, clearly structured pathway.

With:

  • €300,000 + VAT in qualifying real estate
  • provable foreign income
  • and a new residential property

buyers gain permanent EU residency tied to a tangible asset they can use, rent, or hold long-term.

For many international buyers, this balance of clarity, cost, and flexibility is exactly what makes Cyprus stand out.