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
Yes, US citizens can legally buy residential property in Cyprus in 2026, but as a non-EU national you will need government permission before completing the purchase.
This guide covers everything from ownership rules and taxes to mortgages and US tax reporting, all written for everyday buyers rather than professionals.
We constantly update this blog post to reflect any changes in Cyprus property law and market conditions.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Cyprus.
Fact-checked and reviewed by our local expert
Laurence Rapp 🇬🇧
Sales representative at Spot Blue - International Real Estate Agency
Can a US citizen legally buy residential property in Cyprus right now?
Can I buy a home in Cyprus as a US citizen in 2026?
As of early 2026, US citizens can legally purchase residential property in Cyprus, including apartments, houses, villas, and townhouses, though you must obtain acquisition permission from the District Administration under the long-standing "aliens" property framework. The standard buying process involves finding a property, signing a contract with deposits, having your lawyer submit the permission application (Form Comm. 145), and then completing the transfer once approval comes through, which is typically granted within two to three months if you have a clean record and can prove your funds come from abroad. This permission step sounds intimidating, but it is largely a formality that your Cyprus lawyer handles as part of the normal transaction, so most American buyers find the process smoother than expected.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in Cyprus.
Are there many Americans buying property and living in Cyprus in 2026?
As of early 2026, Americans represent a small but steady slice of foreign property buyers in Cyprus, likely accounting for roughly 1% to 4% of all non-Cypriot residential transactions, which makes them a visible but not dominant presence in the market. The neighborhoods with the highest concentration of American expats and property owners include Germasogeia and Agios Tychonas in Limassol, Kato Paphos and Chloraka in Paphos, Mackenzie and Oroklini near Larnaca, and Engomi and Strovolos in Nicosia for those seeking a more urban lifestyle. The top three reasons Americans choose to buy in Cyprus are the Mediterranean climate and lifestyle, the relatively affordable entry point compared to Western Europe (especially the 300,000 euro permanent residency pathway), and the English-speaking environment combined with EU membership benefits. The American expat community in Cyprus is growing modestly, driven by remote workers, retirees attracted to the lower cost of living, and investors seeking the Golden Visa pathway to European residency.
Do foreigners have the same buying rights as locals in Cyprus?
As of early 2026, foreigners do not have identical buying rights to locals in Cyprus: EU citizens enjoy near-parity with Cypriot nationals and can buy without restrictions, while non-EU buyers like Americans face extra steps including mandatory government permission and limits on how many properties or how much land they can acquire. The main property types or locations that are restricted for non-EU buyers include purchasing more than one residential property as an individual, plots of land exceeding about 4,000 square meters, and there are proposed new restrictions being debated in Parliament in early 2026 that could further limit purchases near the Green Line (ceasefire line), forest land, and agricultural land.
We cover all these things in length in our pack about the property market in Cyprus.
Can I buy property in Cyprus without a residence permit?
As of early 2026, you can absolutely buy property in Cyprus without holding a residence permit, and many American buyers complete their purchases while living abroad. The process for buying as a non-resident involves working remotely with a Cyprus lawyer who handles document signing (often via power of attorney), manages the permission application, coordinates with the Land Registry, and ensures funds are properly transferred from your foreign bank account. Buying a home in Cyprus does not automatically grant you any visa or residency rights, though purchasing property worth at least 300,000 euros can qualify you for the permanent residency program if you also meet income requirements. The main practical challenge non-resident buyers face is managing the timeline and document flow from a distance, especially coordinating bank transfers, getting apostilled documents, and attending to deadlines like the 30-day stamp duty window.
Can US citizens own land in Cyprus?
As of early 2026, US citizens can own land in Cyprus, but they face more restrictions than locals or EU citizens and typically need permission for purchases that stay within size limits. The main ownership structure in Cyprus is freehold, meaning you own the property and usually the land share attached to it outright, which is what most residential buyers receive; leasehold arrangements are less common in everyday residential purchases but can appear in some development or special land situations. The specific geographic zones or land categories where foreign ownership is restricted or under increased scrutiny include plots exceeding about 4,000 square meters, agricultural land, forest land, and properties near the ceasefire line (Green Line) or critical infrastructure, with new legislation being debated in early 2026 that could tighten these restrictions further.
Please note that we have a dedicated blog article about the land buying process in Cyprus here.
What documents will I need to buy in Cyprus?
As of early 2026, the essential documents a US citizen needs to purchase property in Cyprus include your passport (often with certified copies), proof of your home address, background information forms for the permission application, and comprehensive proof of funds showing where your money comes from, as Cyprus takes anti-money laundering very seriously. You will likely need a Cyprus Tax Identification Code (TIC) for certain tax filings and utilities, which your lawyer can arrange for you during the transaction process. A local Cyprus bank account is not always legally mandatory, but in practice most buyers open one because it makes fund transfers, utility payments, and any future mortgage payments much simpler to manage. The proof of funds documentation Cyprus banks and lawyers typically require includes recent bank statements, documentation of asset sales if relevant, income evidence, and sometimes tax returns to demonstrate the legitimate source of your purchase money.
We have a whole section dedicated to all the documents you need in our Cyprus property pack.
Can a foreign-owned company buy property in Cyprus?
As of early 2026, foreign-owned companies can purchase residential property in Cyprus, but if the company is controlled by non-EU nationals, it is generally treated similarly to a non-EU individual buyer for permission purposes, so company structures do not automatically bypass the restrictions. Americans do sometimes use Cyprus-registered company structures to hold property, particularly when buying multiple properties or for estate planning purposes, though this is not a magic shortcut for the average buyer and requires setting up a proper Cyprus limited company with ongoing compliance obligations. Owning property through a company can sometimes offer tax advantages for rental operations or estate planning, but it also increases complexity significantly because you will have annual audit requirements, corporate filings, and on the US side, additional IRS reporting forms for foreign entities. The main drawback of using company ownership for residential property in Cyprus is the administrative burden: you need audited financial statements every year, annual returns, a registered office, directors, and a secretary, plus the cost of maintaining all of this often outweighs the benefits for a simple personal residence.
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What taxes and fees will I pay in Cyprus in 2026?
What are buyer taxes in Cyprus in 2026?
As of early 2026, the total buyer tax on a Cyprus property purchase ranges dramatically from about 0% to 19% of the purchase price depending on whether VAT applies, which for a 300,000 euro property (roughly 325,000 USD or 310,000 EUR) could mean anywhere from nearly nothing to about 57,000 euros in VAT alone. The two main tax branches are VAT (which applies to new builds and can be 19% standard or 5% reduced for qualifying primary residences up to 130 square meters) and transfer fees (which apply to resales and can be exempt if VAT was paid, or discounted by 50% in many cases if VAT was not paid). Buyer tax rates do differ based on circumstances: the reduced 5% VAT rate is only available for first-time primary residences meeting specific criteria, so most foreign "second home" buyers purchasing new builds pay the full 19% VAT, while resale buyers pay transfer fees instead.
If you want to go into more details, we also have a page detailing all the property taxes and fees in Cyprus.
What are other closing costs in Cyprus in 2026?
As of early 2026, the total closing costs excluding taxes that a buyer should budget for in Cyprus typically range from about 2% to 4% of the purchase price, which for a 300,000 euro property (roughly 325,000 USD) would be approximately 6,000 to 12,000 euros (6,500 to 13,000 USD). The main closing cost categories include legal fees (typically around 1% of purchase price, so about 3,000 euros for a 300,000 euro property), stamp duty (a tiered amount capped at 20,000 euros, usually under 2,000 euros for most residential purchases), Land Registry and admin fees (a few hundred euros), property survey or inspection (500 to 1,500 euros recommended for houses and villas), and agent commission if applicable (often 2% to 5%, though confirm who pays). The most negotiable closing costs are typically the real estate agent commission and sometimes legal fees if you are bringing multiple transactions to the same lawyer. The single closing cost item that tends to surprise foreign buyers the most in Cyprus is the stamp duty deadline: you must pay it within 30 days of signing the contract, and missing this deadline triggers penalties that can catch buyers off guard.
Are there hidden fees foreigners miss in Cyprus right now?
As of early 2026, the total amount of commonly overlooked fees foreign buyers encounter in Cyprus can add up to 2,000 to 10,000 euros (roughly 2,200 to 11,000 USD) or more, depending on the specific situation. The top three hidden or unexpected fees that foreign buyers most often fail to budget for are: first, the stamp duty deadline penalty if you miss the 30-day window (which can add hundreds of euros in fines); second, title deed or encumbrance issues that require legal resolution (potentially 1,000 to 5,000 euros in extra legal work); and third, the full 19% VAT on new builds when buyers assumed they would qualify for the 5% reduced rate but did not meet the primary residence criteria. The ongoing annual costs foreign property owners often underestimate after purchase include municipality taxes (which vary by area but typically run 200 to 800 euros per year), building maintenance or common charges for apartments (500 to 2,000 euros per year), property insurance (300 to 1,000 euros per year), and utility connection and ongoing costs which are higher than many buyers expect.
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate in Cyprus.
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.
Can I get a mortgage as a US citizen in Cyprus in 2026?
Do banks lend to US citizens in Cyprus in 2026?
As of early 2026, Cyprus banks do lend to US citizens, but mortgage availability is more limited and conditions are stricter for non-residents compared to local buyers or EU citizens with permanent residency. US citizens generally receive similar treatment to other non-EU foreign nationals when applying for mortgages in Cyprus, meaning they face the same higher down payment requirements and documentation hurdles rather than any special advantage or disadvantage based on American nationality. The main reason some Cyprus banks are hesitant to lend to American borrowers specifically is the FATCA compliance burden, which requires banks to report US account holders to the IRS and creates additional administrative work that smaller banks may prefer to avoid. The typical approval rate for US citizens applying for property loans in Cyprus is lower than for residents, with many non-resident applications facing rejection or requiring significantly higher down payments to proceed, though applicants with strong income documentation and substantial deposits can still get approved.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in Cyprus.
What down payment do American people need in Cyprus in 2026?
As of early 2026, the minimum down payment required for US citizens to obtain a mortgage in Cyprus is typically 35% to 50% of the property value, which for a 300,000 euro property (roughly 325,000 USD) means you would need approximately 105,000 to 150,000 euros (115,000 to 165,000 USD) in cash upfront. The typical down payment range for foreign buyers in Cyprus goes from a minimum of about 30% for those with the strongest profiles up to 50% for non-residents or higher-risk borrowers, compared to just 10% to 20% for Cyprus residents with established credit history. Yes, a larger down payment does improve your mortgage terms and interest rates in Cyprus: banks view higher equity as lower risk, so putting down 40% or 50% instead of the minimum can get you approved when you otherwise might not, and may shave 0.25% to 0.5% off your interest rate.
You can also read our latest update about mortgage and interest rates in Cyprus.
What interest rates do US citizens get in Cyprus in 2026?
As of early 2026, the typical mortgage interest rate range for US citizens in Cyprus is approximately 3.5% to 5.5%, with most non-resident borrowers falling in the 4% to 4.5% range while residents with strong profiles may see rates closer to 3.5% to 4%. Interest rates for foreign buyers in Cyprus are generally 0.25% to 1% higher than rates offered to local residents, primarily because banks price in the additional risk of cross-border income verification, currency fluctuations if you earn in dollars, and the complexity of pursuing collateral if something goes wrong. Variable-rate mortgages linked to the ECB base rate or Euribor are more common for foreign buyers in Cyprus, with typical terms allowing you to fix the rate for 3, 5, or 10 years before converting to variable, though some banks like Bank of Cyprus now offer fixed rates for up to 25 years for those who want maximum stability. The single factor that has the biggest impact on the interest rate a US citizen will be offered is your residency status: having Cyprus permanent residency dramatically improves your terms, followed by your loan-to-value ratio (lower down payment means higher rate) and the strength of your income documentation.
Can I use US income to qualify in Cyprus right now?
As of early 2026, Cyprus banks do accept US-sourced income for mortgage qualification, which is common for remote workers paid in USD, retirees with US investment income, and business owners with US financials, though you should expect more documentation requirements than a local applicant would face. The documentation of US income that Cyprus banks typically require from American applicants includes two or more years of tax returns, recent bank statements showing regular deposits, employment verification letters or contracts for employees, and audited accounts or business financials if you are self-employed. If standard US documentation is insufficient, some Cyprus banks may accept alternative verification methods such as accountant-certified income statements, proof of asset portfolios with dividend or interest income, or rental income documentation from US properties, though these alternatives usually require larger down payments to compensate for the perceived risk.
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How do US taxes interact with owning property in Cyprus?
Do I have to declare the property to the IRS from Cyprus?
As of early 2026, simply owning foreign real estate in Cyprus does not by itself require a standalone IRS form, but most American property owners in Cyprus do trigger reporting requirements through related activities like maintaining a Cyprus bank account, earning rental income, or eventually selling the property. The specific IRS forms US citizens may need to file when owning foreign real estate in Cyprus include Form 8938 (Statement of Specified Foreign Financial Assets) if your Cyprus bank accounts or other financial assets exceed the FATCA thresholds, Schedule E for rental income, and Form 4797 or Schedule D for capital gains when you sell. The reporting trigger is not ownership itself but rather when you have rental income, when you sell and realize a gain, or when you hold foreign financial accounts used in connection with the property that exceed the reporting thresholds, so a vacation home you own outright with no rental income and no local bank account may not require any special forms beyond your normal return.
Will I pay tax twice in the US and Cyprus in 2026?
As of early 2026, there is a real risk of being taxed in both the US and Cyprus on property-related income or gains, but the US tax system provides mechanisms to reduce or eliminate actual double taxation through foreign tax credits and careful planning. There is a tax treaty between the US and Cyprus, documented in official IRS records and US Congress records, which helps define which country has taxing rights on different types of income and provides some relief mechanisms, though treaties are technical and do not automatically mean "no double tax." The Foreign Tax Credit allows you to offset taxes paid to Cyprus against your US tax liability on the same income, so if you pay Cyprus tax on rental income or capital gains, you can generally claim a credit that reduces your US tax bill by a similar amount, preventing true double taxation in most cases. Whether property taxes paid in Cyprus are deductible on US federal tax returns depends on your specific situation and current US tax law, which has changed in recent years, so this is a question you should discuss with a CPA rather than assuming it works one way or another.
Do I need FATCA reporting when buying in Cyprus?
As of early 2026, most American property buyers in Cyprus will trigger FATCA reporting requirements not because of the property itself, but because they open Cyprus bank accounts to manage the purchase and ongoing expenses, which are considered specified foreign financial assets. The specific FATCA thresholds that trigger Form 8938 reporting are 50,000 USD at year-end (or 75,000 USD at any point during the year) for US residents, with higher thresholds of 200,000 USD at year-end (or 300,000 USD at any point) for Americans living abroad, and these thresholds cover bank accounts, investment accounts, and certain other foreign financial assets. FATCA reporting via Form 8938 differs from FBAR (FinCEN Form 114) in that FBAR has a lower 10,000 USD aggregate threshold for all foreign accounts combined, is filed separately from your tax return directly with FinCEN, and has different penalties for non-compliance, so many Americans with Cyprus accounts must file both forms. Consulting a US CPA before buying property in Cyprus is strongly recommended if you will rent the property out, if you are buying through a company structure, if you expect to maintain significant Cyprus bank balances, or if you may become a Cyprus tax resident, and specific questions to ask include how to properly report rental income, what depreciation rules apply to foreign property, and how to structure the purchase to minimize compliance burden.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Cyprus. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Cyprus, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Cyprus Department of Lands and Surveys | Official Land Registry authority that records titles and transfers | We used it to explain practical buyer checks like title deeds and encumbrances. We also highlighted Cyprus-specific risks and why depositing a sale contract matters. |
| Central Bank of Cyprus | Country's central bank and primary source for official interest rates | We used it to anchor mortgage rate expectations with official weighted-average data. We translated that benchmark into realistic ranges foreign buyers might see. |
| Cyprus Government Transfer Fee Calculator | Official government portal for statutory property fee calculation | We used it to describe how transfer fees work when VAT applies versus when it does not. We avoided relying on unverified fee tables. |
| Cyprus Tax Department VAT Tool | Official Tax Department portal for VAT guidance and calculations | We used it to explain how reduced VAT is applied via official criteria. We clarified why VAT depends on new build versus resale and primary residence conditions. |
| IRS Cyprus Tax Treaty Documents | IRS's official repository of treaty documents with Cyprus | We used it to explain what treaty coverage exists and its limitations. We kept the US tax section grounded in official documents rather than blog claims. |
| IRS Form 8938 FATCA Guidance | IRS's official guidance on FATCA reporting thresholds | We used it to explain when Cyprus bank accounts trigger US reporting. We gave clear threshold rules instead of vague warnings. |
| US State Department Cyprus Advisory | US government's official guidance for US citizens in Cyprus | We used it for north versus south cautions that affect property and residency. We avoided hearsay on border rules that matter to buyers. |
| GOV.UK Cyprus Property Guide | Government consumer-protection guide widely cited for Cyprus risks | We used it as a cross-check on common legal pitfalls like title deeds and deposits. We kept the buyer safety section practical and plain-English. |
| DLS Foreign Buyer Statistics | Official source for recorded sales involving foreign buyers | We used it to describe how Cyprus measures foreign buyer activity. We supported our estimate that foreigners are a meaningful share of transactions. |
| Bank of Cyprus Housing Loans | Largest Cyprus bank with clear published mortgage product information | We used it to indicate active housing lending and published rate structures. We anchored practical mortgage expectations for foreign buyers. |
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