The Cyprus property market continued its steady growth during the first quarter of 2026, according to the latest RICS Cyprus Property Index with KPMG in Cyprus.
Apartments remained the strongest-performing property category
The Cyprus property market remained strong in May 2026, with 1,723 property sales contracts deposited, marking a 5% increase compared with May 2025.
The Parliament has approved an extension of the reduced VAT for first-time home buyers, offering additional time to benefit from the incentive.
Apartment prices in Cyprus continued to rise strongly in late 2025, with the market increasingly driven by demand for apartments, especially, in Limassol.
An important change is coming to Cyprus VAT legislation that affects when a property is considered “used” and therefore no longer subject to VAT.
5% VAT on property in Cyprus until June 2026: A limited-time advantage
When purchasing residential property in Cyprus, VAT plays a key role in the final cost. While the standard rate is 19%, buyers may qualify for a reduced 5% rate under specific conditions, creating significant savings.
Property sales in Cyprus continued their strong start to 2026, with sales contracts deposited at Land Registry offices rising by 11% in February compared with the same month in 2025.
In 2026, Cyprus plans to convert residence permits into a fully digital format as part of a broader initiative to introduce over 100 new e-government services. The professionals working in global mobility are expected to be among the first to notice the changes.
Cyprus property sales made a strong start in 2026, as the number of sales contracts deposited at Land Registry offices nationwide increased by 11 per cent in January compared with the same month in 2025.
Cyprus Passport remains the 14th most powerful passport globally in the 2026 Henley Passport Index, holding the same position as last year, according to data published on 15 January.
