Buying property in Cyprus in 2026

Cyprus offers a reassuringly familiar slice of the Mediterranean. It is a place where you drive on the left, the legal system is based on English Common Law and English is spoken almost everywhere. Yet, it pairs this familiarity with 320 days of sunshine, ancient history and a relaxed island pace that feels a world away from the UK.

However, buying a home here is not as simple as packing your bags. The market has specific bureaucratic hurdles, most notably the requirement for permission to buy and the complexities surrounding Title Deeds. Since Brexit, the rules on how long you can stay have also shifted, making residency a key consideration for British buyers.

This guide walks you through the essential steps of buying in the Republic of Cyprus, from navigating the Council of Ministers application to understanding the VAT rules. We also cover a critical financial factor: your currency exchange. You will be buying in euros, meaning your budget is exposed to market volatility. We explain how to manage that risk so you can proceed with confidence.

Can foreigners buy property in Cyprus?

Yes, but with restrictions. Unlike in Spain or France where you can buy as much as you like, Cyprus controls foreign ownership more strictly.

As a non-EU citizen (which now includes British buyers), you are generally entitled to purchase one property strictly for personal use. This can be an apartment, a house, or a plot of land not exceeding 4,014 square metres.

Crucially, you must obtain permission from the Council of Ministers. This sounds daunting, but for bona fide buyers with no criminal record, it is largely a formality. Your lawyer will handle this application after you sign the contract. You can take possession of the property while waiting for permission, but the title deed cannot be transferred to your name until it is granted.

Visas and residency in Cyprus

For non-EU nationals, the right to live in your Cypriot home is not automatic.

90/180 Day Rule: You can spend up to 90 days in Cyprus within any rolling 180-day period without a visa. This is usually sufficient for holiday home owners.
The “Pink Slip” (Temporary Residency): This is a visitor’s permit for those who wish to stay longer (e.g. for retirement) without working. It is valid for one year and renewable, but you cannot be absent from Cyprus for more than three months at a time.
Permanent Residency (Category 6.2): This is the “Fast Track” route. If you invest at least €300,000 (£255,000) plus VAT in a brand-new property and can prove a secure annual income from abroad, you can obtain permanent residency for you and your family.

Why buy property in Cyprus?

Cyprus remains a top choice for international buyers who value safety and community:

British Connection: A huge expat community and deep historical ties mean there is almost no culture shock.
Tax Efficiency: Cyprus offers attractive tax rates on foreign pension income (often just 5%).
Safety: consistently ranked as one of the safest countries in Europe.
Climate: It has one of the warmest winters in the Mediterranean, making it a true year-round destination.

The property-buying process in Cyprus

The system is based on English law but has its own quirks.

Reservation Deposit: Once you find a property, you pay a fee (usually €2,000 to €5,000) to take it off the market.
Due Diligence: This is critical. Your lawyer must check the Land Registry to ensure the property has a “Clean Title” and verify if Title Deeds are available. In Cyprus, developers sometimes mortgage the land, which can trap buyers. Never skip this step.
Contract of Sale: You sign the contract and pay a significant deposit (often 30% or more).
Deposit the Contract: Your lawyer takes the signed contract to the Land Registry office for “Specific Performance”. This legally blocks the seller from reselling the property or adding new mortgages.
Council of Ministers: Your application for permission to buy is submitted.
Transfer of Deeds: Once permission is granted and the purchase is completed, the Title Deeds are transferred to your name.

Costs of buying a property in Cyprus

Costs vary significantly depending on whether you are buying a new build or a resale property. You should budget for the following:

VAT: This is the big one for new properties. The standard rate is 19%. However, a reduced rate of 5% is available for the first 130 square metres of a primary residence (subject to value caps), provided you use it as your main home for 10 years.
Transfer Fees: These apply to resale properties (where no VAT is paid). They are charged on a sliding scale from 3% to 8% based on property value. Note: If you pay VAT on a new build, you do not pay Transfer Fees.
Stamp Duty: A relatively small one-off fee (approx 0.15% to 0.2% of value).
Legal Fees: Typically 1% to 2% + VAT.

Why currency exchange is critical

You will need to send money at several stages:

Reservation fee
Initial deposit (often 30%)
Stage payments (if buying off-plan)
Final balance

Cyprus uses the euro. If your funds are in pounds, dollars, yen or krone, the price of your property is effectively moving every day.

For illustration, a €350,000 property could cost:

£296,000 at a GBP/EUR rate of 1.18
£312,000 at a GBP/EUR rate of 1.12

That is a difference of roughly £16,000 purely due to currency movement.

How to manage currency risk

You can reduce this uncertainty with a plan.

Forward contract: Fix today’s exchange rate for a future payment. This is particularly useful in Cyprus if you are waiting for the Council of Ministers permission or making stage payments on a new build. It locks in your cost and protects your budget.
Market order: If you have time before you need to buy, you can set a target rate. We will automatically buy the currency for you if the market hits that level.

Why use a specialist currency provider?

Cypriot banks have tightened their compliance rules significantly in recent years. Sending large sums from abroad can sometimes lead to delays or requests for extensive “Source of Funds” documentation.

Smart Currency Exchange specialises in these transactions. We ensure your funds arrive in Cyprus on time and at a competitive rate. We can also speak directly to your lawyer to ensure the transfer details match exactly what the Land Registry requires.

Making transfers on time

Timing is everything. If you are buying a resale property, the transfer of deeds often happens at the Land Registry office at a specific appointment time. You need your funds to be cleared and ready (often via a Banker’s Draft) for the handover. To stay on track:

Ensure you know whether you need to pay via bank transfer or draft.
Allow extra time for compliance checks.
Use a forward contract so you know exactly how much sterling you need to send to cover the euro balance.

In summary: buying property in Cyprus

To make your purchase smooth and secure, follow these rules:

Check specifically for Title Deeds before you commit.
Budget carefully for VAT (19%) if buying a new build.
Protect your budget from currency volatility using a Forward Contract.

Frequently Asked Questions about buying property in Cyprus

Is it safe to buy property in Cyprus?

Yes, provided you follow the rules in the Republic of Cyprus (the south). We strongly advise caution regarding property in the north due to complex ownership disputes. Always use an independent lawyer in the Republic to ensure the land has no pre-1974 claims or developer mortgages.

Can I get a mortgage in Cyprus?

Yes. Cypriot banks lend to non-residents, typically offering up to 50-60% of the property value. Be prepared for strict affordability checks.

How long does the Council of Ministers permission take?

It typically takes 2 to 6 months. Your lawyer will usually advise you to sign the contract and deposit it at the Land Registry first, which protects your ownership rights while the permission is processed.