A buyer’s guide to Cyprus property, residency and tax.

01

Permanent residency through a qualifying property

For third-country nationals, Regulation 6(2) provides an investor route to an immigration permit. The residential option requires a first-sale house or apartment bought from a development company, worth at least €300,000 plus VAT. A resale home does not qualify under this residential category except for the narrow historical exception in the official policy.

The Migration Department requires official receipts showing at least €300,000 paid excluding VAT when the application is submitted, regardless of delivery date. The investment funds must be evidenced as coming from abroad. This corrects the €200,000 payment wording in one supplied guide; it does not mean the full price of every higher-value home must already be paid.

For this residential route, secured annual income from abroad must be at least €50,000. The requirement rises by €15,000 for a spouse and €10,000 for each dependent minor child; the spouse’s income may count. Clean criminal records, health insurance and the other quality criteria also apply. The permit does not grant a general right to take paid employment, although the policy contains limited director and shareholding exceptions.

The main permit covers a spouse and children under 18. Unmarried, financially dependent children between 18 and 25 studying tertiary education abroad may apply separately under additional conditions. Do not assume all adult children or parents are covered. Ask an immigration lawyer to check the investment and each family member before reserving a home.

02

Keep residence rights and documents in order

The official policy describes an unlimited residence right for the holder and adult dependants, but the physical adult residence card expires after ten years and must be replaced. Applicants living abroad must acquire residence in Cyprus within one year of approval. Permanent residence abroad or an absence from Cyprus for two years can end the permit. A simple promise of validity for life leaves out these obligations.

Current official clarifications require annual evidence that the qualifying investment is maintained, and health-insurance evidence where the family no longer benefits from GESY. Adult criminal-record certificates are required every three years. The earlier annual income-evidence requirement was abolished. Confirm the current filing checklist and any proposed sale or replacement investment with your lawyer; neither approval nor a processing deadline is guaranteed.

03

Understand property VAT before you reserve

The standard Cyprus VAT rate is 19%. Under the general reduced-rate scheme, eligible buyers using a qualifying home as their main residence can apply for 5% VAT on the first 130 m² of buildable area up to a value of €350,000. The total transaction value must not exceed €475,000 and the total buildable area must not exceed 190 m². Special and transitional cases need separate checks; 5% is not a blanket rate for every home.

The main-residence requirement runs for ten years. Letting the home or changing its use can affect relief and may trigger a proportional repayment, subject to the applicable rules and exceptions. A property suitable for the residency programme is not automatically eligible for reduced VAT. Do not assume a buy-to-let or occasional holiday home qualifies.

Older planning applications may fall under a different transitional scheme using 200 m². KPMG’s May 2026 report of the Tax Department announcement describes a conditional extension to 31 December 2026, not a universal extension: planning-application and building-permit dates matter. The unqualified 200 m² wording in the supplied programme should not be used for a new purchase without checking those dates. Obtain a written assessment of the specific property from your Cyprus tax adviser.

04

Separate immigration from tax residence

A residence permit does not itself make you Cyprus tax resident. The 183-day rule generally requires more than 183 days in Cyprus in a calendar year. The separate 60-day rule requires at least 60 days in Cyprus, no more than 183 days in another single country, specified Cyprus business, employment or company-office ties, and an owned or rented permanent home. All the relevant conditions must be met.

The requirement to be tax resident in no other country was removed from the 60-day test from 1 January 2026. One supplied guide still contains that older condition. Other countries can nevertheless treat you as tax resident, and treaty rules may matter. Ask advisers in both countries to review your day counts, income, family ties and any dual-residence position.

The business or employment connection needed for a tax test must also be compatible with the conditions of your immigration permit. Do not assume that a tax-residence route gives you permission to work in Cyprus.

05

Rental income and non-dom status

Cyprus tax residents are generally taxed on worldwide income, while non-residents can still owe Cyprus tax on relevant Cyprus-source income. For 2026, the first €22,000 of chargeable personal income falls within the zero-rate band. This is an income-tax band, not an automatic exemption for a property purchase or all overseas income.

Special Defence Contribution on rental income was abolished from 1 January 2026. Rent is not therefore tax-free: ordinary income tax can still apply, and General Healthcare System contributions may also be due. Ask your adviser to check the ownership structure, allowable costs, rental use and obligations in your home country before comparing income after costs.

Non-dom status concerns domicile for Special Defence Contribution and can exempt qualifying individuals from that contribution on dividends and interest. It is not a blanket exemption from income tax, property capital-gains tax or healthcare contributions. The deemed-domicile rules include tax residence in at least 17 of the previous 20 years. Eligibility and any extension provisions require individual advice; buying a home alone does not establish this status.

06

Budget for ownership and eventual sale

Purchase VAT and Land Registry transfer fees are different charges. The current tax reference states that no transfer fees are payable where VAT applies to the purchase; where VAT does not apply, the ordinary transfer-fee scale is reduced by 50%. Legal work, financing, registration and other expenses can still arise. Obtain a written cost estimate for the specific transaction.

The national immovable property tax was abolished from 2017, but municipal charges, refuse and sewerage costs, insurance, maintenance and shared-service costs can still be relevant. Cyprus property gains can be subject to capital-gains tax at 20%, with allowable costs and conditional exemptions. Non-dom status does not by itself remove this liability. Plan the tax and costs of both ownership and sale with your advisers.

07

Legal checks and life in Cyprus

The Ministry of Interior states that non-EU nationals and certain foreign-controlled companies need local District Administration permission to acquire immovable property. This is separate from immigration approval. Ask an independent lawyer to check title deeds, mortgages and other encumbrances, planning and building permissions, the sale contract and transfer conditions. For off-plan homes, confirm the written specification, delivery position and purchase stages.

Use the Deputy Ministry of Tourism’s Visit Cyprus portal to compare Paphos, Limassol and surrounding villages, then test the actual journeys to schools, shops and medical services. An attractive render does not establish included furnishings, a guaranteed view or everyday convenience.

GESY healthcare eligibility depends on residence in the Republic’s government-controlled areas and the relevant beneficiary category. A property purchase is not enrolment. Check eligibility, registration and any private insurance required before moving, alongside school places, utilities and ongoing household costs.