The third largest island in the Mediterranean, Cyprus has long been a highly popular holiday destination for travellers from all over the world for so many reasons, not least because it’s such a picturesque country, offering brilliant all-year-round weather, amazing beaches, and the clearest blue sea. But for much of the last century, Cyprus was a less attractive destination because of the long-running conflict between Turkey and Greece over territorial rights on the island. Up until the middle of the 1960s, there was instability in Cyprus which meant it really wasn’t the place for outsiders to buy property there.
A Brief History
There is so much to discover historically about Cyprus – not surprising given the island’s proximity to Greece. Cyprus has a big place in Greek mythology; the island is said to be the birthplace of mythological figures, Aphrodite and Adonis. Greek settlers were instrumental to the development of Cyprus for at least 500 years from 1400 B.C.
Cyprus was granted independence by the British in 1960 but further serious conflict through to the 1970s meant the island was divided into a Turkish area in the North and a Greek area in the South. Since then, there has been relative stability in Cyprus, seeing the island become the popular holiday destination of today, and a desirable country for people looking for a second home, or holiday home to rent out. With its beautiful mountain ranges, amazing forest areas, vibrant cities, and – most obviously – enticing coastal resorts, it’s hardly surprising that Cyprus is such an attractive proposition for prospective buyers of the island’s property.
Where to Buy
There are several popular areas on the island to consider, but generally, they are split into two. There are the more urban areas including Nicosia, Larnaca, and Limassol, and the coastal resorts of Paphos and Famagusta. Nicosia is the country’s capital, a vibrant city with historical features mixed with modern amenities such as a popular shopping centre, art galleries, and museums. Larnaca, on Cyprus’s West Coast, is the island’s oldest city, having the best of both worlds in terms of its city life and beach culture; while to the South, Limassol has developed into a trendy city, the hub of the island’s trade and industry. Larnaca is home to one of the island’s international airports, the other one being in Paphos, perhaps the most popular tourist destination on the island with its beautiful harbour, historic town, and attractive beaches. The other main beach area is Famagusta, on the East Coast, perfect for family holidays with its popular beaches, water sports, and numerous restaurants, bars, and clubs. While Limassol is regarded as the ‘place to be’ in Cyprus these days, properties in Famagusta currently offer a buyer the same size of property as Limassol but at less than two-thirds of the price. As you’d expect, properties in the city are much more expensive than ones outside the city centre.
The Current Property Market
When it comes to actually buying a property in Cyprus, there are other considerations to observe as well as the area where you want to make your investment. It’s important to remember that Cyprus has been a member of the European Union since 2004, and the Cypriot Property Market has seen a great fluctuation in fortunes in recent years. After a marked upturn in activity in the late 2010s, the Covid pandemic inevitably had a detrimental effect on all aspects of Cyprus’s economy, not least the property market. However, the recovery has been forthcoming since 2022. Brexit has obviously had an effect on UK investors looking to spend a lot of time in the country, with the need for visas or residence permits as they are now non-EU citizens. However, the Cypriot authorities have done everything possible to keep encouraging interest in the island’s property since the UK left the EU. While there are no restrictions on EU citizens buying property in Cyprus, it’s slightly more complicated for UK citizens. The main stipulation is that UK citizens can only buy a single property on the island and if using the property for a holiday home, they can only spend 90 days there in a 180-day period.
Purchasing in Cyprus
For a foreigner buying a property in Cyprus, the steps are straightforward if not familiar.
Determine your budget by arranging your finance with a reputable lender. Then hire the services of a local legal expert before starting your search for a property. See every property in person before deciding on the property for you and making an offer. Here’s the step that is perhaps least familiar – apply to the Council of Ministers in writing for permission to buy the property that you’ve set your heart on. Sign the contract with the property seller, and once you’ve transferred the purchase funds, complete the sale by registering the property in your name. There are obviously finer points to be looked into – not least if you’re buying from outside of the EU. As regards pitfalls, these can be avoided by doing your research and putting a capable Cypriot lawyer on the case.
Despite fluctuations in the market, and possible minor complications in the process of buying a property, e.g. Brexit, Cyprus is still a very attractive country to buy a second home in or even to retire to. With a relatively stable economy and political landscape, there are less worries about investing in Cyprus than in past periods. And some things haven’t changed at all – Cyprus is still a beautiful island that enjoys the most wonderful Mediterranean weather, landscape, and culture.
