Before Cyprus’ entry into the European Union, it was common to invest in Cypriot property due to the low prices in comparison to other European countries. However in May 2004, Cyprus was admitted into the EU and this admission was followed by legislations that discouraged the purchase of a property.
If you’re considering letting your property to offset the mortgage and running costs, you should be aware that there are now various letting restrictions in Cyprus. Cypriot law states that property owned by foreigners, who are not residents of Cyprus, can only be let on a long-term basis to Cypriots or EU nationals who reside there. In other words, short-term holiday lettings are illegal. If you want to let your property in Cyprus, you should obtain professional legal advice on your particular situation.
Despite the relatively low prices you shouldn’t expect to make a quick profit when buying a property in Cyprus. Although, more and more agents are now offering what they call ‘investment possibilities’ because of the flourishing property market. It is usually wiser to do as the Cypriots do - most locals don’t buy and sell for profit, but rather consider property less as a financial investment and more of an investment in their family’s future.
This article is adapted from Buying a Home in Cyprus from Survival Books.