How to buy a house in Cyprus and get citizenship?

Authored by the expert who managed and guided the team behind the Cyprus Property Pack

Everything you need to know before buying real estate is included in our Cyprus Property Pack

Who is the author of this content?

INVESTROPA

A team specialized in real estate investing in European countries (Cyprus, Portugal, Spain, Greece, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Cyprus. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At Investropa, we explore the Cyprus real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Limassol, Paphos, and Nicosia. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Fact-checked and reviewed by our local expert

✓✓✓

Nikki Grey 🇬🇧

CEO & Director, Europe Properties

With years of experience in European real estate, Nikki Grey understands the unique appeal of Cyprus as a prime investment destination. At Europe Properties, she facilitates property acquisitions that offer both lifestyle and financial benefits, including access to the island's Golden Visa program. Her insights help investors navigate the Cypriot market, from beachfront villas to lucrative rental properties.

How much do I need to invest in real estate in Cyprus to qualify for residency or citizenship?

The minimum investment for Cyprus permanent residency is €300,000 in qualifying real estate, plus you must prove €50,000 in annual income from sources outside Cyprus.

For residential properties, you must purchase new-build homes (not resale properties) worth at least €300,000 plus 5% VAT for first-time buyers on the first 200 square meters. Commercial properties like offices, shops, or hotels can be new or resale and require €300,000 plus 19% VAT.

The annual income requirement increases to €65,000 if you include a spouse and €75,000 if you have one child. Each additional child requires an extra €10,000 in proven annual income. This income must come from abroad through sources like salaries, pensions, dividends, or business profits generated outside Cyprus.

You can combine up to two properties to meet the €300,000 threshold, but both must qualify under the program rules. Alternative investment options include purchasing €300,000 in shares of a Cyprus-registered company that employs at least five people, or investing the same amount in Cyprus-regulated investment funds.

It's something we develop in our Cyprus property pack.

Is there a Golden Visa or Citizenship by Investment program in Cyprus, and how does it work?

Cyprus offers a Golden Visa program for permanent residency but no longer provides direct citizenship by investment since the program was discontinued in 2020.

The current Cyprus Golden Visa grants permanent residency status to non-EU nationals who invest €300,000 in qualifying assets. This residency permit is indefinite but requires renewing the biometric card every five years for a €70 fee. The permit allows you to live, study, or run a business in Cyprus without minimum stay requirements.

To maintain your permanent residency status, you only need to visit Cyprus once every two years. The program covers your immediate family including spouse and unmarried children under 25 who are financially dependent students. Disabled children of any age can also be included, but parents are no longer eligible as dependents since May 2023.

While there's no direct path to citizenship through investment, permanent residents can apply for naturalization after legally residing in Cyprus for seven years within the last ten years, including 12 continuous months before applying. This naturalization process requires B1 Greek language proficiency, knowledge of Cypriot society and politics, and a clean criminal record.

The residency permit processing time typically takes 2-6 months after submitting your complete application and required documents.

What are the exact steps to buy a house in Cyprus as a foreigner?

Non-EU foreign buyers must follow a specific legal process that includes obtaining Council of Ministers permission before completing their property purchase.

First, you select your property and pay a reservation deposit of €5,000-€10,000 to secure it while you complete due diligence. You must hire a Cyprus lawyer to verify the property's title deeds, check for any liens or encumbrances, and ensure legal compliance with all regulations.

Next, you apply for Council of Ministers permission, which takes 2-3 months for non-EU buyers. This approval is mandatory and cannot be bypassed. While waiting for permission, you can sign a preliminary sales contract and pay a deposit of 10-40% of the property value.

Once you receive Council of Ministers approval, you complete the final purchase by paying the remaining balance. The property transfer must be registered at the Land Registry, and you'll pay transfer fees of 0.15-0.20% of the property value plus applicable VAT rates.

The entire process typically takes 4-6 months from initial reservation to final completion. Legal and agent fees usually total around 1% of the property value, and you should budget for additional costs including property surveys, insurance, and utility connections.

Can I bring my family with me under the investment or residency scheme?

Yes, the Cyprus permanent residency program allows you to include your immediate family members in your application without additional investment requirements.

Family Member	Eligibility Requirements	Additional Income Needed
Spouse	Legally married	+€15,000 annual income
Children under 18	Unmarried, financially dependent	+€10,000 per child
Children 18-25	Unmarried, students, financially dependent	+€10,000 per child
Disabled children	Any age, proof of disability	+€10,000 per child
Parents	Not eligible since May 2023	Not applicable
Siblings	Not eligible	Not applicable
Extended family	Not eligible	Not applicable

How long is the residency permit valid once I invest, and can it be renewed or upgraded?

Cyprus permanent residency permits are indefinite and do not expire, but the physical biometric card must be renewed every five years.

The biometric card renewal costs €70 and is a straightforward administrative process that doesn't require you to re-qualify for the program. As long as you maintain your qualifying investment and visit Cyprus at least once every two years, your permanent residency status remains valid indefinitely.

You cannot work as an employee in Cyprus with this permit, but you can operate as a company director or run your own business. The permit can be "upgraded" to citizenship through the naturalization process after seven years of legal residency, though this requires meeting additional requirements including language proficiency and cultural knowledge.

If you fail to visit Cyprus within the two-year period or dispose of your qualifying investment before obtaining citizenship, your permanent residency status may be revoked. Recent regulatory changes in 2023 have increased scrutiny, and permits can be revoked for providing false documentation or developing a criminal record.

The permit allows unlimited travel in and out of Cyprus and provides a clear legal status that can facilitate visa-free or visa-on-arrival travel to many countries, though it doesn't grant EU citizenship rights.

Is there a clear path from residency through investment to full citizenship in Cyprus?

Cyprus permanent residents can pursue citizenship through naturalization after meeting specific residency and integration requirements, but there's no guaranteed or fast-track path.

You must legally reside in Cyprus for seven years within the last ten years, including 12 continuous months immediately before applying for citizenship. This means you need to establish genuine residence, not just maintain the minimum visit requirement for permanent residency.

The naturalization process requires B1 level Greek language proficiency, demonstrated knowledge of Cyprus society and politics, and a completely clean criminal record throughout the residency period. You must also show integration into Cyprus society through employment, business activities, or community involvement.

Citizenship applications take 6-12 months to process and have no guaranteed approval. Rejection rates have increased as Cyprus implements stricter compliance measures. Common reasons for rejection include insufficient actual residence time, language test failures, or discovery of undisclosed criminal history.

It's something we develop in our Cyprus property pack.

What are the requirements and documents needed to apply for permanent residency or citizenship through investment?

The document requirements for Cyprus permanent residency are extensive and must be properly authenticated with apostilles and official translations.

1. **Personal Documents**: Passport copies for all applicants, birth certificates, marriage certificates if applicable, and recent passport-style photographs2. **Criminal Record Certificates**: Police clearance certificates from your country of residence and any country where you've lived for more than six months in the past five years3. **Financial Documentation**: Bank statements showing the source of investment funds, proof of €50,000+ annual income (salary certificates, pension statements, dividend records)4. **Investment Proof**: Property purchase contracts, company share certificates, or investment fund documentation5. **Health Insurance**: Mandatory coverage for all applicants and family members

All foreign documents must be apostilled in the issuing country and officially translated into Greek by certified translators. The application form MIP1 must be completed and submitted with a €500 processing fee to the Civil Registry and Migration Department.

For citizenship applications, additional requirements include Greek language certificates (B1 level), evidence of genuine residence in Cyprus for seven years, employment or business registration documents, and detailed personal history covering the entire residency period. Any gaps in documentation or residency can result in application rejection.

Processing involves biometric data collection, which requires at least one visit to Cyprus during the application process. Incomplete or improperly authenticated documents are the most common cause of application delays or rejections.

Are there any business investment options besides real estate, and what are their minimum requirements?

Cyprus offers two alternative business investment options beyond real estate, both requiring €300,000 minimum investments with specific operational requirements.

Company share investments require purchasing €300,000 worth of shares in a Cyprus-registered company that maintains at least five full-time employees. The company must be actively operating and cannot be a shell company created solely for residency purposes. You can establish a new company or buy into an existing business, but employment levels must be maintained throughout your residency period.

Investment fund options include Cyprus-regulated Alternative Investment Funds (AIF), Alternative Investment Funds for Non-Professional Investors (AIFNLP), or Registered Alternative Investment Funds (RAIF). These funds must be regulated by the Cyprus Securities and Exchange Commission and require a minimum €300,000 investment commitment.

Business investments offer more flexibility than real estate but require ongoing compliance monitoring. Company investments need annual audited financial statements proving continued operation and employment levels. Fund investments are subject to market performance risks and regulatory changes affecting fund operations.

US citizens should be aware that Cyprus investment funds may be classified as Passive Foreign Investment Companies (PFICs), creating complex tax reporting obligations and potential penalties. This makes real estate investment often more practical for American investors seeking Cyprus residency.

How long does the entire process take from investment to getting residency or citizenship?

The complete timeline from initial investment to permanent residency typically takes 4-8 months, while citizenship through naturalization requires 7+ years of legal residence.

Process Stage	Timeline	Key Requirements
Property Search & Reservation	2-8 weeks	Due diligence, lawyer selection
Council of Ministers Permission	2-3 months	Non-EU buyers only
Property Purchase Completion	1-2 months	Final payments, registration
Residency Application Submission	2-4 weeks	Document preparation, translation
Residency Approval	2-6 months	Background checks, biometrics
Citizenship Eligibility	7 years minimum	Continuous legal residence
Citizenship Application Process	6-12 months	Language test, integration proof

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Cyprus versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What kind of real estate qualifies—can I buy just land, or does it have to be residential or commercial property?

Cyprus residency investment rules specify that only completed buildings qualify, not undeveloped land or properties under construction.

For residential properties, you must purchase new-build homes, apartments, or villas that have received final building permits and completion certificates. Resale residential properties do not qualify for the residency program, though they can be purchased separately for investment purposes.

Commercial properties including offices, retail shops, warehouses, and hotels can be either new or resale and qualify for the program. These properties often offer higher rental yields but require 19% VAT instead of the reduced 5% rate available for residential purchases.

Mixed-use developments combining residential and commercial elements can qualify if the total investment meets the €300,000 threshold. However, the residential portion must still be new-build to comply with program requirements.

Agricultural land, vacant plots, and properties under construction cannot be used to meet the residency investment requirement. The property must be ready for immediate occupation or use and properly registered with clear title deeds at the time of purchase.

What is the feedback from people who have successfully obtained Cyprus residency or citizenship through investment—and from those who failed?

Successful applicants consistently report that professional legal support, transparent income documentation, and clean criminal records are essential for smooth approval within 6 months.

Success stories typically involve investors who engaged reputable local lawyers early in the process, maintained all required documentation in apostilled form, and chose properties from established developers with clear title deeds. Many successful applicants purchased new residential properties in Limassol or Paphos, benefiting from the reduced 5% VAT rate for first-time buyers.

Common failure factors include criminal records discovered during background checks, insufficient proof of income sources, and purchasing properties that don't meet program requirements. Several applicants have been rejected for buying resale residential properties thinking they qualified, or for investing in properties under construction that weren't completed by application time.

Recent scrutiny increases since 2023 have led to permit revocations for applicants who provided false documentation or developed criminal records after approval. Some US citizens have faced unexpected tax complications from investment fund options, leading many to prefer real estate investments despite higher transaction costs.

Processing delays often occur when applicants submit incomplete apostilled documents or fail to maintain their qualifying investments during the application review period. The most successful applicants typically budget 20-30% above the minimum investment to cover all fees, taxes, and professional services.

Are there any taxes, hidden fees, or legal pitfalls I should know about before starting the process?

Cyprus property transactions involve several mandatory costs beyond the purchase price, with total additional expenses typically reaching 10-15% of the property value.

1. **VAT Costs**: 19% standard rate on commercial properties, 5% reduced rate for first-time residential buyers on first 200m², full 19% on excess area2. **Transfer Fees**: Scaled from 0-8% based on property value, currently discounted by 50% through government incentives3. **Legal Fees**: Typically 1% of property value plus VAT for lawyer services, document preparation, and due diligence4. **Survey and Inspection**: €500-€1,500 depending on property size and complexity5. **Stamp Duty**: €1.71 per €1,000 of property value for contracts over €170

Hidden costs include utility connection fees, local council taxes, annual property taxes ranging from 0.6-1.9% of property value, and mandatory building insurance. US citizens face additional PFIC tax reporting requirements for investment fund options, potentially creating ongoing compliance costs and penalties.

Legal pitfalls include purchasing properties without clear title deeds, buying in areas where non-EU ownership is restricted, or failing to maintain the minimum investment until citizenship or permit revocation. Recent regulatory changes have increased scrutiny of income sources, requiring detailed documentation of fund origins.

It's something we develop in our Cyprus property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Harvey Law Corporation - Cyprus Permanent Residency
2. GK Law Firm - Cyprus Residency by Investment
3. Developers Cyprus - Residence by Investment Guide
4. Global Citizen Solutions - Cyprus Golden Visa
5. Immigrant Invest - Cyprus Golden Visa
6. IMIN Cyprus - Residency by Investment Guide
7. Clerides Legal - Cyprus Permanent Residency 2025
8. Global Citizen Solutions - Buying Property in Cyprus