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From the moment the purchase contract is signed and the down payment is paid, the contract is immediately registered with the Land Registry Office, securing your legal right to the property even before the taboo is received. For non-EU buyers, such as Israelis, approval from the Cypriot Council of Ministers is also required, which is usually obtained within 2–6 months (depending on the province – Limassol is the fastest), and is usually not a significant barrier for gullible buyers. The longer stage is registering the taboo in your name: in a new property (on paper) it cannot be issued until the entire project has been completed and registered as separate units – a process that can take another 6–24 months after construction is complete. In practice, from signing to taboo in a new project may take 2–5 years, while in a second-hand property with an existing taboo, the transfer takes only a few weeks.

Yes, Israelis and other foreign buyers can obtain financing from local banks in Cyprus, even if the terms are stricter than those offered to EU residents. The loan-to-value (LTV) ratio for foreign buyers is usually 50%–70% of the property value, so that equity of approximately 30%–40% or more is required. The average annual interest rate (as of 2025–2026) ranges from approximately 3% to 4.5%, depending on the bank, the type of interest rate (fixed or variable) and the loan period. The main banks that provide mortgages to foreigners are Bank of Cyprus, Eurobank (formerly Hellenic Bank) and Astrobank. It is important to know that obtaining a mortgage does not exempt non-EU buyers from the need for approval from the Council of Ministers to purchase the property. It is recommended to carry out an eligibility check with the bank at an early stage, at the same time as selecting the property.

The average annual yield in Cyprus (RICS-KPMG data) is at the national level around 5%–5.5% for apartments and around 3% for houses and villas, but the gaps between areas are significant. In tourist areas such as Ayia Napa and Protaras, properties intended for short-term rental (Airbnb) can yield a gross yield of 8%–12% in the peak season, and an annual average of 6%–10% for a well-managed property. In Limassol, the most stable rental market, the yield is around 6%; in Larnaca, an up-and-coming area with more accessible prices, it is around 4%. In general, apartments yield a higher percentage yield thanks to a low entry price and wide demand, while villas can yield a higher income in absolute values ​​in the peak season, with seasonality and higher maintenance costs. The actual yield depends on location, quality of management and pricing.

The main difference is taxation: a new property is subject to VAT of 19% (or a reduced 5% for a first apartment up to a certain area), while a second-hand property is not subject to VAT, but there are registration fees in the land registry of 3%–8% of the property’s value. A new property comes with a contractor’s warranty – one year for finishing defects and a long-term structural warranty – and sometimes the option to customize finishes, but actual entry is delayed until construction is complete (sometimes 1–3 years), and the taboo in your name may be delayed even longer. A second-hand property allows for immediate entry, an existing taboo, and quick transfer, but without a contractor’s warranty and usually requires a professional home inspection to check the structural condition and systems. In terms of potential for appreciation, a new property purchased at an early stage (pre-construction) often benefits from a discounted price relative to the value at the end of the project.

There is no legal restriction on foreign owners renting out their property, but in the case of short-term rentals, the property must be registered as “self-catering” with the Cypriot Ministry of Tourism (licensing costs approximately 222 euros, valid for 3 years). There are three main options: a full management company – handles advertising, pricing, communication with guests, cleaning, key handover and ongoing maintenance, for a commission of approximately 10%–20% of rental income (sometimes up to 25% in all-inclusive packages); a local real estate agent – finds a long-term tenant for a one-time commission (usually one month’s rent), without ongoing management; and remote self-management – saves on commission but requires a local contact for maintenance and emergencies. It is important to remember that even with external management, foreign owners are required to report and pay Cypriot income tax on rental income.