74 UGLOBAL IMMIGRATION MAGAZINE
TAX BENEFITS OF PURCHASING RESIDENTIAL REAL ESTATE IN CYPRUS
BY ELENI DRAKOU
Taxes apply to all residential property buyers in Cyprus , regardless of nationality and residency .
Cyprus real estate market is recording a significant increase in the number of sales of immovable properties and property prices .
In October 2023 , the Central Bank of Cyprus ( CBC ) reported a continued increase in Cyprus ’ House Price Index ( HPI ) annually in all country districts . Property prices continue to rise , both for houses and for apartments . Several factors explain this increase , mainly the notable demand by domestic and foreign buyers , construction material prices , the limited supply of new housing units , and the relocation of international companies .
As per the Cyprus Land Registry Office , real estate sales transactions increased annually during the second quarter of 2023 . The number of sales contracts during this period reached its highest level in the last 15 years . The increased demand for immovable properties is reflected in the 26.5 % acceleration of these contracts , led mostly by foreign buyers , while domestic buyers maintain the largest market share .