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
Property purchases in Cyprus require deposits ranging from 20% to 40% of the property value, with exact requirements varying based on your residency status and the lender's policies. Understanding these deposit requirements is crucial for planning your Cyprus property investment, as they represent one of the largest upfront costs you'll face.
If you want to go deeper, you can check our pack of documents related to the real estate market in Cyprus, based on reliable facts and data, not opinions or rumors.
Cyprus property deposits typically range from 20-40% of the purchase price, with EU residents facing lower requirements than non-EU buyers.
Additional costs including transfer fees, stamp duty, and VAT can add 10-25% to your total investment, making proper financial planning essential.
| Buyer Category | Deposit Percentage | Deposit on €150,000 |
|---|---|---|
| EU/EEA Residents | 20-30% | €30,000-€45,000 |
| Non-EU Citizens | 30-40% | €45,000-€60,000 |
| High-Risk Applicants | 40-50% | €60,000-€75,000 |
| Reservation Deposit | 3-5% | €4,500-€7,500 |
| Additional Costs | 10-25% | €15,000-€37,500 |
| Total Initial Investment | 30-65% | €45,000-€97,500 |
How much deposit do I need for a property in Cyprus?
The deposit requirement for Cyprus property purchases ranges from 20% to 40% of the property's total value, depending on your residency status and citizenship.
As of September 2025, EU residents and Cypriot citizens typically need to provide a deposit of 20-30% when securing a mortgage from Cyprus banks. This means on a €200,000 property, you would need between €40,000 and €60,000 as a deposit.
Non-EU citizens face stricter requirements, with deposits typically ranging from 30-40% of the property value. In some cases, particularly for high-risk applicants or luxury properties, banks may require deposits of up to 50%. These higher requirements reflect the increased perceived risk associated with non-resident buyers.
The exact percentage depends on factors including your income verification, credit history, and the specific lender's policies. It's something we develop in our Cyprus property pack.
Is there a minimum deposit requirement for foreigners buying property in Cyprus?
Yes, there is a practical minimum deposit requirement for foreign buyers purchasing property in Cyprus, though this varies significantly based on your country of origin and residency status.
EU and EEA citizens face the lowest minimum deposit requirements, typically starting at 20% of the property value. This aligns with standard European banking practices and reflects the lower perceived risk associated with EU residents.
Non-EU foreign buyers must provide minimum deposits of 30-40% in most cases. Some Cyprus banks require even higher deposits from buyers from certain countries, particularly those outside the EU/EEA economic zone. Additionally, non-EU buyers must satisfy stricter documentation requirements, including proof of income source and enhanced background checks.
No Cyprus bank will finance 100% of a property purchase for foreign buyers, making some form of deposit mandatory for all international property purchases in the country.
What is the standard deposit percentage for a residential property in Cyprus?
The standard deposit percentage for residential properties in Cyprus follows a tiered structure based on buyer classification and risk assessment.
| Buyer Category | Standard Deposit % | Maximum Loan-to-Value |
|---|---|---|
| Cypriot Citizens | 20-25% | 80% |
| EU/EEA Residents | 20-30% | 70-80% |
| Non-EU Residents | 30-35% | 65-70% |
| Non-Residents (EU) | 30-40% | 60-70% |
| Non-Residents (Non-EU) | 35-50% | 50-65% |
| High-Value Properties (€500k+) | 40-50% | 50-60% |
| Investment Properties | 35-45% | 55-65% |
These percentages represent the most common requirements across major Cyprus banks including Bank of Cyprus, Hellenic Bank, and Alpha Bank Cyprus. The loan-to-value ratios directly correspond to these deposit requirements.
Does the location of the property in Cyprus affect the deposit amount?
Property location within Cyprus generally does not significantly affect the deposit percentage requirements, as banks apply consistent lending criteria across the island.
Whether you're purchasing in Limassol, Paphos, Nicosia, Larnaca, or smaller towns, the deposit percentages remain largely the same. Banks focus more on the buyer's profile, property value, and risk assessment rather than specific geographic locations within Cyprus.
However, properties in highly competitive areas like Limassol marina or Paphos seafront may offer less flexibility in deposit negotiations. In these premium locations, sellers and developers often have multiple interested buyers, reducing their willingness to accept lower deposits or alternative payment structures.
Rural or less developed areas might occasionally offer slightly more flexible terms, but this reflects market demand rather than official banking policy differences. The standardized approach ensures consistent lending practices across Cyprus's relatively small geographic area.
Don't lose money on your property in Cyprus
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Are there any special deposit requirements for non-EU citizens looking to buy in Cyprus?
Non-EU citizens face significantly stricter deposit requirements and additional financial obligations when purchasing property in Cyprus.
The minimum deposit for non-EU buyers typically starts at 30-40% but can reach 50% for certain nationalities or high-value properties. Banks classify non-EU applicants as higher risk, leading to these elevated requirements compared to EU citizens who may qualify for 20% deposits.
Beyond higher deposit percentages, non-EU buyers must provide enhanced documentation including certified income statements, bank references from their home country, and detailed source-of-funds declarations. Some banks require deposits to be held in escrow for extended periods before property transfer completion.
Additional requirements often include mandatory life insurance policies, higher mortgage interest rates (typically 0.5-1% above EU resident rates), and restricted mortgage terms with shorter repayment periods. These measures reflect both regulatory requirements and banks' risk management policies for international clients.
Can I use a mortgage in Cyprus to cover the deposit, or does it have to come from my own funds?
The deposit for a Cyprus property purchase must come entirely from your own funds and cannot be financed through the mortgage itself.
Cyprus banks require proof that the deposit comes from legitimate sources such as savings accounts, property sales, inheritance, or documented business income. You cannot borrow the deposit amount as part of the mortgage package, as this would effectively mean 100% financing, which no Cyprus bank offers.
However, you may use funds from other sources including personal loans from banks in your home country, family gifts (properly documented), or proceeds from selling other assets. The key requirement is that these funds must be in your possession before the mortgage application and clearly documented for source verification.
Some buyers arrange bridging loans or credit facilities in their home countries to fund the deposit, then use the Cyprus mortgage to partially repay these arrangements. This strategy requires careful financial planning and understanding of currency exchange risks. It's something we develop in our Cyprus property pack.
Are there any government programs or incentives in Cyprus that reduce the deposit requirement for first-time buyers?
Cyprus offers limited government programs that can help reduce effective deposit requirements for first-time buyers, though these are relatively modest compared to schemes in other European countries.
1. **Rural Development Schemes**: Available for properties in designated rural areas, offering co-financing up to €20,000-€30,000 for first-time buyers 2. **Young Professionals Program**: Provides grants of €5,000-€15,000 for buyers under 35 purchasing their first home 3. **Social Housing Initiative**: Offers reduced-rate loans with lower deposit requirements (15-20%) for qualified low-income first-time buyers 4. **EU Structural Funds**: Occasionally available for properties in specific development zones, providing grants or low-interest loans 5. **Municipal Incentives**: Some local authorities offer property tax reductions or small grants for first-time purchases in their areasMost of these programs are means-tested and available primarily to Cyprus residents or EU citizens. Non-EU buyers typically cannot access these incentive programs, maintaining the standard 30-40% deposit requirements.
As of September 2025, no broad national program significantly reduces deposit requirements for most foreign property buyers. The available schemes tend to favor residents and target specific demographic or geographic criteria rather than providing universal first-time buyer benefits.
How does the type of property (apartment, villa, etc.) impact the deposit amount in Cyprus?
The type of residential property generally does not significantly alter the deposit percentage requirements in Cyprus, as banks focus more on property value and buyer profile than specific property categories.
Apartments, villas, townhouses, and detached houses all follow the same deposit percentage guidelines based on your residency status. A non-EU buyer will need 30-40% deposit whether purchasing a €150,000 apartment or a €300,000 villa.
However, luxury properties valued above €500,000 may require higher deposits regardless of type, often 40-50% due to their classification as high-value assets. Similarly, properties intended for rental investment may face elevated deposit requirements of 35-45% as banks view these as commercial rather than residential purchases.
New-build properties sometimes offer developer financing arrangements that can effectively reduce upfront deposit requirements through staged payment plans, though the total deposit amount remains consistent with banking requirements. Off-plan purchases may allow you to spread the deposit payment over the construction period rather than paying the full amount upfront.
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 is the average deposit size for a property worth €150,000 in Cyprus?
For a €150,000 property in Cyprus, the deposit amount varies significantly based on your buyer classification and chosen bank.
EU residents and Cypriot citizens typically pay deposits of €30,000-€45,000, representing the standard 20-30% requirement. This lower range applies to buyers with strong financial profiles and established relationships with Cyprus banks.
Non-EU citizens face higher deposit requirements of €45,000-€60,000 for the same €150,000 property, reflecting the 30-40% deposit requirement for foreign buyers. Some banks may require deposits up to €75,000 (50%) for buyers from certain countries or those with limited income documentation.
Beyond the main deposit, you'll need an initial reservation deposit of €4,500-€7,500 (3-5% of purchase price) when signing the preliminary agreement. This amount is typically deducted from your final deposit payment but may be non-refundable if you withdraw from the purchase.
Is it possible to negotiate the deposit amount with the seller or real estate agent in Cyprus?
The deposit amount can sometimes be negotiated, particularly regarding the initial reservation deposit and payment timing, though bank mortgage requirements remain fixed.
During the reservation stage, sellers and developers may accept lower initial deposits (1-2% instead of 3-5%) as a competitive advantage, especially in slower market conditions. Some developers offer staged deposit payments or extended payment periods to make purchases more accessible.
However, the final deposit required by banks for mortgage approval cannot be negotiated downward, as these percentages are set by banking regulations and risk assessment policies. A bank requiring 30% deposit from a non-EU buyer will not accept 25% regardless of negotiations with the seller.
Alternative arrangements might include seller financing for part of the purchase price, effectively reducing the bank deposit requirement, though this is rare and typically only available for high-value properties or distressed sales. Most negotiations focus on payment timing and structure rather than reducing total deposit amounts.
What additional costs should I consider when saving for a deposit in Cyprus (taxes, fees, etc.)?
Beyond the property deposit, Cyprus property purchases involve substantial additional costs that can add 10-25% to your total initial investment.
| Cost Category | Percentage/Amount | On €150,000 Property |
|---|---|---|
| Transfer Fees | 3-8% | €4,500-€12,000 |
| VAT (New Properties) | 19% | €28,500 |
| Stamp Duty | 0.15-0.20% | €225-€300 |
| Legal Fees | 1-2% | €1,500-€3,000 |
| Survey/Valuation | €300-€800 | €300-€800 |
| Mortgage Arrangement | 0.5-1% | €750-€1,500 |
| Insurance (First Year) | €500-€1,500 | €500-€1,500 |
VAT applies to new properties but not to resales over two years old, making this the most variable additional cost. Transfer fees are reduced for new builds but higher for resale properties.
Currency exchange costs can add 1-3% if you're bringing funds from outside the Eurozone. Banking fees, international transfers, and professional translation services for documents add another €1,000-€3,000 to total costs. It's something we develop in our Cyprus property pack.
Is the deposit refundable if I change my mind after signing the contract in Cyprus?
Deposit refundability in Cyprus depends on which stage of the purchase process you're in and the specific terms written into your contracts.
The initial reservation deposit (typically 3-5% of purchase price) may be refundable during a specified due diligence period, usually 7-14 days, if major issues are discovered with the property title, planning permissions, or structural problems. However, changing your mind without valid contractual reasons typically means forfeiting this deposit.
Once you sign the full sales contract, deposits become largely non-refundable unless the seller breaches contract terms or fails to provide clear title. Cyprus property law favors contract completion, and buyers who withdraw without valid legal grounds lose their deposits and may face additional penalties.
Some contracts include specific exit clauses for mortgage rejection, allowing deposit recovery if you cannot secure financing despite reasonable efforts. Ensure any contract includes clear terms about deposit refundability conditions before signing, as standard Cyprus property contracts typically favor sellers in withdrawal situations.
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.
Cyprus property deposits require careful financial planning, with requirements ranging from 20-50% depending on your residency status and chosen lender.
Understanding the full cost structure, including additional fees and taxes, is essential for successful property investment in Cyprus.
Sources
- Imin Cyprus - Mortgages in Cyprus Guide
- Spitaki Mou - Minimum Deposit Requirements 2025
- Lawyers in Cyprus - Mortgage Information
- Your Overseas Home - Cyprus Mortgage Broker
- Terra Real Estate - Buying Real Estate in Cyprus
- Anisad Blog - Getting a Mortgage in Cyprus
- InvestRopa - Cyprus Real Estate for Foreigners
- Wise - Buying Property in Cyprus
- Bank of Cyprus - First Home Loans
- GK Law Firm - Buying House in Cyprus