Cyprus in demand as international property inquiries spike
- Interest in Cyprus has more than tripled since the start of March, while sales to non-EU buyers have spiked by more than a fifth
- Cyprus is the best option for residency by investment in a major EU Mediterranean country, after Spain closed its Golden Visa in April 2025 and Portugal closed the property route in October 2023.
- Cyprus residential property prices rose 7.1% in 2025 according to the Cyprus Statistical Service, with foreign buyer transfers up 16% on the previous year.
- Investors are increasingly looking to Cyprus for an EU base that offers a 15% corporate tax rate, a 17-year tax break for new residents, and a stable Mediterranean location outside the Middle East.
CYPRUS has emerged as the Mediterranean’s standout property investment market, according to a property investment expert, as the situation in the Middle East and the closure of EU rivals’ residency programmes redirect global investor flows.
Helen Mercer-Jones, Managing Director of leading UK property investment firm ERE Property has commented on how the current climate has prompted a wider reassessment of Gulf-based investment positions, particularly among internationally mobile entrepreneurs and high-net-worth individuals holding a UAE base.
She said: “Over the past decade the United Arab Emirates, particularly Dubai, has become one of the world’s most attractive destinations for expatriates seeking tax efficiency, global connectivity, and a high standard of living. However, recent conversations with our client base at ERE Property indicate a clear shift in thinking, and we have seen a 327% increase in enquiries from those located in the middle east since the start of March, while sales to non-EU buyers have increased by 23%. Many expatriates who relocated to the UAE for tax-free living are now actively exploring alternative jurisdictions, but crucially they do not want to return to the UK.
“When assessing their options within Europe, clients have noticed that in the past few years, the alternatives have narrowed. Portugal closed the property route on its Golden Visa programme in October 2023, while Spain ended its Golden Visa entirely in April 2025. Greece raised its property thresholds significantly in 2024, with minimum investment in Athens, Thessaloniki and several Greek islands now set at €800,000. In contrast, Cyprus is now the only major EU Mediterranean country still operating an open property-linked residency route on broadly its original terms.”
The data shows that Cyprus residential property prices rose 7.1% year-on-year in the fourth quarter of 2025, according to the Cyprus Statistical Service. Foreign buyer interest has also continued to rise. According to the Cyprus Department of Lands and Surveys, 7,255 properties were sold to foreign buyers in 2025 – a 16% increase on 2024 and the third-highest total on record. Total real estate transaction value across the Cypriot market reached a record €6.5 billion in 2025, according to PwC Cyprus.
Mercer-Jones continues: “For overseas buyers, Cyprus combines several features that no other major EU Mediterranean country currently matches. The corporate tax rate is 15%, one of the lowest in the EU, and new tax residents qualify for a non-domicile regime that means no tax on dividends, interest or rental income for 17 years. Plus there is no inheritance tax, no wealth tax and no annual property tax.”
Beyond the tax framework, Cyprus offers practical advantages that other Mediterranean markets do not. English is widely used in business, banking and the courts – a legacy of the country’s common-law legal system, modelled on the English system – and the cost of living is significantly below London or Dubai.
In addition, permanent residency in Cyprus is available to non-EU buyers who purchase property worth at least €300,000, alongside meeting income and clean-record requirements. Permanent Residence covers the buyer, spouse and dependent children, and does not need to be renewed annually.
How Cyprus compares with other EU Mediterranean countries:
| Country | Property residency for foreign buyers | Headline corporate tax |
| Cyprus | Yes – from €300,000 | 15% |
| Portugal | No – closed October 2023 | 21% |
| Spain | No – closed April 2025 | 25% |
| Malta | Yes – from €350,000 | 35% |
| Greece | Yes – from €250,000–€800,000 | 22% |
Sources: European Commission Taxation and Customs Union; national tax authorities; national residency-by-investment programmes
Mercer-Jones concluded: “Investors looking at Mediterranean property in 2026 face a much narrower set of choices than they did three years ago. Portugal and Spain have closed their property routes, Greece has raised its prices, and conditions globally have made stability a much higher priority. Cyprus offers what most other markets no longer can: an open programme, a low and stable tax environment, an English-speaking legal system, and a property market that grew 7.1% in the past year. For UK investors, internationally mobile entrepreneurs and clients moving on from Dubai, it is increasingly the obvious choice.”
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