Soaring housing costs help make Limassol Cyprus’ priciest city

Nigel Howarth
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Soaring housing costs help make Limassol Cyprus’ priciest city

Limassol continues to dominate Cyprus’ cost-of-living and property rankings, underpinned by sustained pressure on residential supply and persistently higher housing costs. The latest Numbeo cost-of-living data, compiled over the past year, reinforces the city’s position as the island’s most expensive urban market.

The January 2026 update, based on 737 price entries from 83 contributors, places Limassol ahead of Nicosia, Paphos and Larnaca across most major expenditure categories, with housing remaining the principal differentiator.

Limassol’s housing costs highlight supply constraints

Rent absorbs 32.2% of monthly household costs in Limassol, the highest share among the four cities analysed, highlighting the extent of affordability pressure in the local rental market.

Average monthly rents for a one-bedroom apartment in Limassol city centre stand at €1,338.64, rising to €2,350.00 for a three-bedroom unit. Outside the centre, rents remain elevated at €1,147.22 and €1,743.48 for one-bedroom and three-bedroom units respectively.

By comparison, rent accounts for 27.9% of household expenditure in Nicosia, 29.3% in Paphos and 26.4% in Larnaca. A centrally located one-bedroom apartment costs €664.55 in Nicosia, €922.22 in Paphos and €862.62 in Larnaca, underscoring the widening rental premium commanded by Limassol.

Capital values maintain a clear premium

Sale prices mirror rental trends. Apartments in central Limassol are priced at €4,536.49/m2, significantly above Nicosia’s €2,713.81. Paphos and Larnaca follow at €3,742.00 and €3,403.26 respectively.

Outside city centres, Limassol still leads at €3,555.38/m2, while prices in the other three cities cluster closer to the €1,900–€2,100 range. The consistency of this price gap points to structurally higher demand rather than short-term volatility.

Higher incomes in Limassol offer partial cushion

Limassol records the highest average monthly net salary in Cyprus at €2,449.46, compared with €1,547.36 in Nicosia, €1,919.93 in Paphos and €1,594.57 in Larnaca. While this provides some support for pricing, income growth continues to lag behind housing costs.

Mortgage conditions show limited regional divergence, with 20-year fixed rates ranging from 3.52% in Paphos to 4.36% in Nicosia, suggesting financing costs are not a key driver of regional price variation.

Lifestyle costs reinforce Limassol’s premium profile

Operating costs for residents, and by extension tenants, remain higher in Limassol. Dining, leisure and private services are consistently priced above national averages, reinforcing the city’s positioning as a premium, service-led market.

A mid-range three-course meal for two averages €80 in Limassol, compared with €60 in Nicosia and Paphos and €50 in Larnaca. Gym memberships average €81.76 per month, significantly above other cities.

Family-related costs further differentiate the market. Private preschool fees average €538.09 per month, while international school tuition reaches €9,419.38 per year — factors that continue to support demand in higher-income residential segments.

Numbeo’s summary of cost of living in Cyprus

According to Numbeo:

  • The estimated monthly costs for a family of four €3,068.10 (excluding rent.)
  • The estimated monthly costs for a single person are €856.60 (excluding rent.)

Cyprus 2026 property tax reforms: what buyers and sellers need to know

Maria Kokoridi
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Cyprus 2026 property tax reforms: what buyers and sellers need to know

From 1 January 2026, Cyprus introduced a series of tax reforms that directly affect sale and purchase transactions of immovable property. These changes do not just adjust technical tax rules – they change the costs, structure and timing of real estate transactions.

For anyone planning to purchase or sell immovable property, it is important to understand what has changed and how it may impact their plans. While the reform covers many areas of taxation, this article focuses only on the changes that directly affect property transactions.

For real estate, this translated into two headline measures:

  1. Abolition of stamp duty under the Stamp Duty Laws; and
  2. A reshaping of the Capital Gains Tax (CGT) rules, including higher exemptions and a wider net for indirect property disposals.

Why the reform was introduced

The reform aims to make the system fairer and more transparent. In particular, it seeks to:

  • modernise the tax framework and align it with current market conditions,
  • improve tax transparency and compliance, and
  • close structural loopholes in real estate transactions and to simplify procedures and make compliance more efficient.

Stamp duty on property contracts – abolished for new deals

One of the most noticeable changes is the abolition of stamp duty under the Stamp Duty Laws, with effect from 1 January 2026.

How it worked before

Stamp duties were paid on all Contracts at Inland Revenue and were calculated according to the purchase price.

How it works now

Sale contracts signed on or after 1 January 2026 are not subject to stamp duty, and no calculation or stamping procedure is required.

Contracts signed on or before 31 December 2025 remain subject to the previous stamp duty regime and must be stamped accordingly.

Impact on buyers and sellers

  • Lower upfront costs for the buyers.
  • Simpler procedures, with no stamping formalities required.
  • No penalties for late stamping.
  • Smoother process overall, with fewer administrative steps following the signing of the contracts.

Capital gains tax (CGT) – higher lifetime exemptions

Capital Gains Tax (CGT) is a tax imposed on the profit realised from the sale of immovable property in Cyprus. The gain is generally calculated by taking the sale price and deducting the original acquisition cost and certain eligible expenses, such as improvement costs, transfer fees, legal fees, registered estate agent’s fees and indexation for inflation.

Individuals are also entitled to lifetime allowances, which reduce the taxable gain and vary depending on the type of property being sold (for example, a main residence or agricultural land).

The tax reform also modernises the CGT regime by increasing the lifetime allowances, thereby reducing the overall CGT burden for many individuals selling property

The thresholds have been increased as follows:

  • General personal exemption increased from €17,086 to €30,000.
  • Agricultural land exemption increased from €25,629 to €50,000.
  • Main residence exemption increased from €85,430 to €150,000, subject to the applicable conditions and supporting evidence.

These apply to disposals executed under contracts signed from 1 January 2026 onwards. For contracts signed prior to 1 January 2026, the previous Capital Gains Tax rules and exemption thresholds will continue to apply.

Impact on sellers

For many private property owners, the increased exemption thresholds mean that a larger portion of the gain will now fall outside the scope of CGT. In practice, this results in less CGT being payable and makes the sale of residential property more tax-efficient under the new tax regime.

CGT – wider net for share-based transactions

Real estate in Cyprus is frequently held through companies. Under the old regime, CGT applied to the sale of shares where more than 50% of the value was derived from Cyprus immovable property.

Under the new rules, CGT the threshold has been reduced to 20%, meaning that CGT will now apply to share disposals in companies where at least 20% of their value relates to Cyprus property. As a result, a wider range of “property-rich” share transactions are now captured by the CGT regime.

Impact – who is affected and how?

This change mainly affects property owners, investors and developers who hold real estate through companies. Because the CGT threshold has been reduced to 20%, more share transfers will now be treated as property transactions and may trigger CGT, even where the property itself is not transferred directly.

For buyers, this change increases the importance of tax and valuation due diligence when acquiring shares in companies that hold real estate, as potential CGT exposure may arise within the structure.

Compliance considerations at completion

The reform also strengthens the compliance element of real estate transfers by giving the Tax Commissioner clearer powers to delay or prevent the transfer of immovable property where tax returns or liabilities remain outstanding.

This is not a new concept, but rather an enhancement of the existing requirement for tax clearance, making compliance checks more explicit and enforceable.

CGT – property swap transactions

The amended CGT regulations extend the existing relief for property swap transactions, allowing relief to apply where immovable property is exchanged or received as consideration, rather than cash.

How it worked before

Under the previous regime, CGT relief on property swap transactions was limited and narrow in scope. In most cases – particularly where a landowner contributed land to a developer and received completed units in return – the transaction could trigger a CGT liability, even though no cash changed hands and the landowner had not yet realised any liquidity to pay the tax.

How it works now

The reform broadens the availability of relief to cover a wider range of property swap transactions and consideration-in-kind arrangements involving immovable property, provided statutory conditions are met. This modernises the treatment of non-cash property transactions and recognises the commercial reality of how many development projects are now structured.

Impact

This amendment is considered a positive development as property swap transactions have grown significantly in recent years. The reform removes the upfront CGT burden on such arrangements and provides parties with greater flexibility in structuring non-cash property deals.

Conclusion

The 2026 tax reform introduces significant tax regime changes in property transactions. The abolition of stamp duty reduces the upfront costs of entering into a transaction and simplifies the process for buyers. At the same time, the changes to the Capital Gains Tax regime reduce the effective tax burden on many individuals selling property, extend CGT to a wider range of share deals involving real estate, and provide greater flexibility for developers to structure land-for-units and similar non-cash transactions without an immediate tax liability where certain conditions are met.

For buyers and sellers, these changes can create opportunities to reduce costs and simplify transactions, but they also highlight the importance of planning ahead. Obtaining legal at an early stage allows parties to identify any issues early, make informed decisions and take full advantage of the reliefs and opportunities available under the new tax regime where applicable.

Maria Kokoridi
Senior Associate at Philippou Law Firm

Housing crisis: ETEK warns on social cohesion

Nigel Howarth
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Housing crisis: ETEK warns on social cohesion

Cyprus is facing a housing challenge that goes beyond affordability, it’s now a question of social cohesion and economic stability.

According to Constanti Constantinos, President of the Cyprus Scientific and Technical Chamber (ETEK), rising housing costs affect not just vulnerable groups, but also middle-income families, young professionals, and working households.

Finding homes that are affordable, near work, and close to essential services is becoming increasingly difficult. Housing is no longer just a roof over one’s head; it’s a critical social asset and a cornerstone of a productive economy.

Not just a housing supply problem

The crisis isn’t only about not enough homes being built. There’s also a mismatch between what’s available and what people can afford. Much of the new housing stock fails to meet the income levels of households looking for homes. Energy efficiency, accessibility, and the growing number of smaller households also shape housing needs today.

ETEK stresses that success should not be measured simply by the number of new homes built, but by how well housing meets people’s needs.

Rental market under pressure

Despite some policy improvements, rents remain high, and market pressures are intense. Mr Constantinos highlights the lack of mechanisms to track, predict, and adjust housing policies in real-time. He calls for a Unified Housing Policy Authority to coordinate efforts, analyse trends, and propose corrective actions.

Making use of existing homes

One immediate solution is activating vacant or underused homes. With the right incentives, these units could ease pressure on the market quickly. Urban regeneration, converting empty commercial spaces into housing, and better use of large under-occupied homes are all practical steps. Safe co-living or downsizing options could also unlock significant housing potential.

Moving beyond “build-to-sell”

The current “build-to-sell” model is limiting. Mr Constantinos advocates for more build-to-rent developments, which could stabilise the rental market and prevent sharp rent increases. Regulation of short-term rentals is also essential, as these often remove long-term rental options from the market, further driving up costs.

Planning, taxation, and governance

ETEK suggests that affordable housing quotas in new local plans could be an effective tool if they include clear affordability definitions, timelines, and sustainability measures. Taxing idle land that hasn’t been developed after incentives have been exhausted could also bring unused property into productive use.

Affordable housing does not mean low quality

Affordability should never mean poor quality. Constanti Constantino emphasises maintaining high architectural standards and proposes design competitions for affordable rental units to ensure homes are both liveable and attractive.

The takeaway

Affordable housing in Cyprus cannot rely on a single measure. It requires a combination of tools, incentives, and regulations, along with better use of existing stock, urban regeneration, and support for rental housing. Only through this multi-pronged approach can Cyprus ensure housing that is accessible, sustainable, and socially cohesive.

(Translated and summarised from an article in StockWatch)

Claims Cypriot land is sold off to non-EU nationals overstated

Editorial
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Claims Cypriot land is sold off to non-EU nationals overstated

Claims that foreign buyers are dominating Cyprus’ property market may be overstated, with non-EU nationals accounting for just over a quarter of sales and their share actually declining, according to an analysis by Fiona Mullen, director of Sapienta Economics.

Non-EU nationals represented 26.5% of property contracts of sale in 2025, down from 31.7% in 2023, whilst Cypriots accounted for 59.5% of purchases last year, Mullen found.

“A great deal of fuss has been made about foreign sales because people have just looked at the rising number of foreign buyers, and not done the mind-numbing task of pulling out numbers from separate PDF files to compare foreigners with Cypriot sales,” Mullen wrote. “Guess what? Cypriot sales have also been rising, so the proportions have not changed that much.”

Sales to Cypriots nearly doubled from 4,875 in 2018 to 10,859 in 2025, outpacing the increase in non-EU purchases from 2,939 to 4,809 over the same period.

Mullen criticised a September report by Cyprus’ audit office, which speculated that foreign ownership might be higher due to purchases through Cyprus-registered companies. “It’s an audit office. Without any hard evidence it should not be speculating at all,” she wrote.

She recommended that parliament use existing ultimate beneficial owner records to provide anonymised nationality data to the land registry. “Only then shall we have the full picture and parliament can decide if anything needs to be done about it,” Mullen said.

However, recent Cystat data on residential properties showed that in most cities except Nicosia, sales to foreigners exceed those to Cypriots, with non-Cypriots paying more per square metre. “In the end, this pushes up prices for everyone,” Mullen wrote.

She warned that housing affordability remains a critical political issue. “We have an ageing cohort that is asset-rich and doesn’t want to pay more tax, and a smaller cohort that cannot afford to buy houses, getting angrier by the day,” she wrote, citing economist David McWilliams’ warning of a “ticking time-bomb” that could fuel support for anti-democratic movements.

© In-Cyprus.com

Value of property transfers in Cyprus in 2025 topped €4.7bn

Nigel Howarth
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Value of property transfers in Cyprus in 2025 topped €4.7bn

Cyprus’ property market delivered a robust performance in 2025, with the total value of property transfers surpassing €4.7 billion, according to a report from the Real Estate Agents Registration Council of Cyprus. The results highlight the sector’s resilience and sustained attractiveness, despite ongoing international economic challenges.

Statistics from the Department of Lands and Surveys, analysed and released quarterly by the Council, show that the number of sale contracts filed nationwide increased by 15% year-on-year. Between January and December 2025, a total of 18,114 sale documents were submitted, up from 15,797 in 2024.

Although the overall volume of property transfers rose only slightly (+ 0.77%) the total value of transactions climbed by approximately 10%, pointing to a clear shift towards higher-value property deals.

Commenting on the figures, Council President Marinos Kynaigeirou said the 2025 results demonstrate the market’s strength and stability. He noted that Cyprus’ real estate sector has withstood global economic pressures while maintaining steady growth, reaffirming property as a safe investment option. He added that the increase in transfer values signals rising demand for premium properties. Looking ahead, he anticipates a period of stabilisation in 2026, while emphasising that affordable housing remains the industry’s most pressing challenge amid continued price increases.

Property transfers by district

In Nicosia, the market experienced particularly strong growth. Property transfer values exceeded €1.1 billion in 2025, up from €950 million in 2024. The number of transfers rose to 5,917, while demand for new properties remained strong, with sale contracts increasing to 4,115.

Limassol continued to lead in transaction value, recording €1.7 billion in transfers compared to €1.5 billion the previous year. However, the total number of transfers declined slightly, suggesting fewer but higher-value transactions. Interest in new-build properties strengthened, with sale contracts climbing to 5,563.

Paphos showed a mixed performance. While sale contracts grew to 3,567, both transfer volumes and values fell modestly, pointing to softer activity in completed transactions.

Larnaca experienced broad-based growth. Transfer values rose to €698.5 million, volumes increased slightly, and sale contracts surged to 3,978, reflecting sustained demand.

In Famagusta district, transfer volumes dipped marginally, but transaction values rose to €236.6 million, and sale contracts also showed a positive increase.

Jointly-owned buildings bill delayed as disputes persist

Nigel Howarth
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Jointly-owned buildings bill delayed as disputes persist

Thousands of jointly-owned buildings residents remain effectively unprotected as long-standing problems persist, while the long-awaited revision of the legislative framework governing jointly-owned buildings faces yet another delay.

The proposed bill aims to comprehensively regulate the management of jointly-owned buildings, but progress has once again stalled.

For the second time in around eighteen months, the Parliamentary Committee on Interior Affairs halted a scheduled discussion after the two key stakeholders, the Interior Ministry and the District Local Government Organisations (DLGOs), failed to reach agreement on fundamental aspects of the proposed legislation.

The meeting had been set to continue the debate in principle on the bill establishing a new legal framework for the management of jointly-owned buildings. A similar postponement occurred months earlier, when the committee granted both sides additional time to resolve their differences.

Committee chair and AKEL MP Aristos Damianou struck a firm tone, warning that no further meetings would be scheduled unless an agreed text is formally submitted to Parliament.

“I will not play the game of extension after extension,” he said, stressing that this was the second postponement intended to facilitate dialogue between the two sides.

Further work still pending

Earlier, DLGO president Constantinos Yiorkadjis informed the committee in writing that additional time is required before they can take a definitive position on the bill.

He noted that a financial impact study requested from the Department of Lands and Surveys was completed and forwarded to the DLGOs in December 2025. However, analysis of the data and the projected income and expenditure of the proposed new service is still pending. This will be followed by internal consultation among the DLGOs and then further discussions with the Ministry of Interior.

According to Mr Yiorkadjis, the lack of organisational structure, the need to secure new premises, and the scale of preparatory work, including software systems, workflow design, process automation, transfer of physical files, and procurement of IT equipment, make a transitional period essential should the DLGOs assume responsibility for managing jointly-owned buildings.

Responsibilities for Jointly-owned buildings

Under the proposed legislation, the DLGOs would take on a central role in implementation. Their responsibilities would include registering and supervising management committees of jointly-owned buildings, maintaining a dedicated registry, resolving disputes between co-owners, and imposing administrative fines on management committees or individual owners where necessary.

These expanded powers remain a major point of contention and have prompted the bill’s return to the Ministry of Interior for further revision.

According to data from the Department of Lands and Surveys submitted to Parliament, Cyprus is estimated to have around 30,000 jointly owned-buildings, representing approximately 200,000 residential units.

The existing legal framework governing the registration and management of jointly-owned buildings is widely regarded as ineffective. This has resulted in long-standing operational problems that undermine their proper functioning, which directly affects the quality of life of their residents.

Funding for dangerous buildings unresolved

Mr Yiorkadjis also highlighted that the issue of cost-recovery fees for dangerous buildings remains unresolved. He warned that DLGOs are being asked to deliver a critical public service without a permanent solution for sustainable funding.

He stressed that before any final decision is taken, the cost of providing these services must be fully calculated and, crucially, secured through appropriate financing mechanisms.

Mr Damianou concluded by calling for the financial study prepared by the Department of Lands and Surveys to be formally submitted to the committee without further delay.

How big is the problem?

Cyprus has a total of 20,919 jointly-owned buildings comprising 219,635 residential units, according to the Department of Lands and Surveys.

Of these, 14,208 buildings are registered, accounting for 159,659 units (mainly apartments), while a further 6,711 buildings remain unregistered, involving 59,976 units.

Nicosia has the highest number of jointly-owned developments, with 4,927 registered buildings with 53,553 residential units. It also leads in unregistered stock, with 2,297 buildings and 19,688 units.

Larnaca has the smallest share, with 898 registered buildings (9,895 units) and 758 unregistered developments (6,865 units). Overall, Nicosia alone accounts for 7,224 jointly-owned buildings and 73,241 residential units, compared with Famagusta’s 1,832 buildings and 19,266 units.

The original draft legislation envisaged the creation of a Registration Council to oversee matters relating to jointly-owned building management, but this approach was rejected by the Interior Ministry, which assigned the responsibility to District Local Government Organisations (DLGOs).

However, the DLGOs did not take part in drafting the bill or in the public consultation process, as the legislation had been prepared before they were established. They were first invited to Parliament to discuss the issue on 25 November 2024, while no DLGOs were present when the bill was examined at the Interior Committee session on 25 September 2025.

 

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