Cyprus is an island with a rich history, stunning nature, and excellent climate that attracts not only tourists but also those looking to invest in real estate or find a home for permanent residence. A house in Cyprus can be a luxurious seaside villa, a cozy mountain cottage, or a modern mansion in one of the cities. It is essential to understand that the cost of a house in Cyprus depends on numerous factors, such as location, property type, size, condition, and the presence of additional amenities. In this article, we will explore in detail how much a house costs in different areas of Cyprus and what factors can influence the final price.
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Location: A Key Factor
The first thing to consider when buying a house in Cyprus is the location. Property prices vary significantly depending on where the property is situated.
- Limassol. This is one of the most expensive cities on the island. Limassol is the financial and business center of Cyprus and a popular spot among expats and tourists. Here, you can find both modern homes in residential areas and luxurious villas on the beachfront. House prices in Limassol range from €400,000 for a small house in the suburbs to several million for a villa with a sea view and private pool. In some prestigious areas, such as Agios Tychonas or Germasogeia, prices can reach up to €10 million for elite properties.
- Paphos. While Limassol is considered a business hub, Paphos is a quiet resort town with a rich cultural heritage. Prices here are significantly lower than in Limassol, although Paphos also offers beachfront homes and luxury villas. For €250,000–400,000, you can buy a modern house in the suburbs of Paphos with a pool and garden. Prices for luxury villas start at €600,000 and can go up to €2–3 million.
- Larnaca. This city is known for its sandy beaches and more affordable property prices. Larnaca is an excellent choice for those looking for a home near the sea without paying for prestigious areas. House prices here range from €200,000 for small cottages to €600,000 for homes in prime areas or on the beachfront. In Larnaca’s suburbs, you can find even more budget-friendly options—around €150,000 for a house on the secondary market.
- Nicosia. The capital of Cyprus, where property prices can also be high, especially in central areas. A house in central Nicosia can cost from €300,000 to €500,000, depending on its size and condition. In suburban areas, prices are somewhat lower, starting at €200,000. However, it is important to remember that Nicosia is not located on the coast, which may influence the preferences of buyers looking for a seaside property.
Village or City Home?
Prices for houses in Cyprus also depend on the type of settlement where the property is located. Homes in villages or small towns are usually cheaper than in large cities or on the coast. For example, in villages around Paphos, you can find houses for €150,000–200,000. These can be modern cottages or homes requiring renovation, offering the opportunity for customized reconstruction. Village homes often feature traditional Cypriot style with stone walls and cozy courtyards.
At the same time, urban properties, especially in major cities like Limassol, Paphos, or Nicosia, are more expensive. This is due to the more developed infrastructure, proximity to business centers, and popularity among tourists and foreign investors. For example, in the central areas of Limassol or Nicosia, house prices can reach €500,000–700,000.
New Builds or Secondary Properties?
Another important aspect to consider when buying a house in Cyprus is the type of property. New builds, especially luxury complexes with modern architecture and advanced infrastructure, are more expensive. For example, villas in new residential complexes in Limassol or Paphos can cost from €500,000 to €1.5 million. These houses typically include a pool, spacious terraces, modern security systems, and energy-saving technologies.
On the other hand, the secondary market offers more affordable options. Secondary properties are often cheaper, especially if the house requires renovation or upgrades. For example, in Larnaca or Paphos, houses on the secondary market can be found for €200,000–300,000. However, buyers should keep in mind that homes in need of repairs may require additional investments for renovation and modernization.
Additional Costs When Purchasing a Home
Buying a house in Cyprus involves not only the cost of the property but also additional expenses that must be considered when planning your budget.
- VAT. If you are purchasing a new property, it is subject to a Value Added Tax (VAT) of 19%. However, if the home will be used as a primary residence, you can apply for a VAT reduction to 5% on the first 130 square meters of the property, provided the total value does not exceed €350,000.
- Transfer Fee. This fee is applicable when purchasing a secondary property and depends on the value of the home. The overall rate ranges from 1.5% to 4%, depending on the transaction amount and the number of buyers. You can calculate it using our online calculator.
- Stamp Duty. When signing the sales contract, the buyer is required to pay stamp duty, which is 0.15% on amounts up to €170,000 and 0.2% on any amount exceeding this threshold.
- Legal Fees. To oversee the transaction, it is common to hire a lawyer who checks all the documents, drafts the contract, and registers the transaction with the Land Registry. Legal fees may amount to 1% of the property’s value, or a fixed sum of €2,500 for comprehensive “turn-key” services.
- Maintenance Fees. If the home is located in a residential complex with shared pools, fitness centers, or other amenities, there may be monthly fees for the maintenance of these facilities.
Investment Prospects
Purchasing a house in Cyprus can be not only a personal decision but also a sound investment. In recent years, the real estate market in Cyprus has shown steady growth, particularly in tourist and resort areas. Houses in Limassol, Paphos, and Larnaca can generate stable rental income, especially during the tourist season. For instance, renting out a house with a sea view can bring the owner €1,000 to €3,000 per month, depending on the season and location.
Moreover, buying property in Cyprus can provide an opportunity to obtain residency through the investment program. This makes Cyprus an attractive destination for foreign investors seeking stable assets and the possibility of living in a country with a high quality of life.
The cost of a house in Cyprus depends on various factors: location, property type, size, condition, and the presence of additional amenities. In different regions of the island, prices can range from €150,000 to several million euros. When purchasing a house, it is important to consider not only its base price but also additional expenses such as taxes, stamp duties, and legal fees. Ultimately, buying a house in Cyprus can be both a pleasant lifestyle choice and a profitable investment for the future.
