Cyprus has been gaining popularity in the international real estate market thanks to its strong economy and steady currency. Its low taxation, moderate inflation and high standard of living coupled with the natural beauty of its land act as a magnet for those in search of a cozy lodge in the mountains or a luminous villa by the sea.

Where to Buy

Ayia Thekla
A quiet relaxing area in the south-eastern part of the island. Ayia Thekla holds the appeal of being largely undeveloped. As of yet, massive hotels and shopping complexes haven’t made their way into this beautiful piece of Cypriot land.
It’s actually possible to spend an entire day at the beach without seeing anyone else, and the more active areas of Ayia Napa and Protaras are only 20 minutes away. There is also an international airport in Larnaca, at another 20 minute drive from Ayia Thekla.

Famagusta
This area is largely agricultural (its strong point is crop exportation), but its southeast area has become famous for excellent beaches.
The area is also known for some very impressive Roman ruins, complete with an amphitheatre, a gymnasium, Roman baths and royal tombs.

Larnaca
Larnaca, on Cyprus’ eastern coast, is a tourist hotspot that offers golden beaches during the day and an active and varied nightlife when the sun goes down.
The town has a great transportation system and offers generous tax incentives to prospective property buyers.

Limassol
Cyprus’ second-largest city, Limassol maintains a thriving property market that’s boosted by vacationers drawn to its coastal resorts.
Limassol became an important economic center in Cyprus when Russian off-shore companies began moving to the area in the 90’s; since then, hundreds more from around the world have done the same. As a result, a sizeable and wealthy Russian community has settled in Limassol.

What Type of Property to Buy
The first question that has to be asked when considering the purchase of international property (before you start looking at actual possibilities) is: what do I want to get from this property? If you want a place to run off to every once in a while to relax, your choice will be influenced by different factors than if you want a place to move into on a permanent basis, to live and work in Cyprus.

If you’re searching for a vacation home, you can’t only keep your own interests and preferences in mind. You have to realize that you’ll probably be letting out the property, and therefore choose a home and a location that will be appealing to vacationers. Even if you initially don’t plan on letting, it’s good to keep this option open as an alternative in case you ever need to.

If your intention is to settle down and live in Cyprus, perhaps even start a business there (which has become much easier for foreigners to do since Cyprus became an EU member in 2004), you’ll have to look at different factors, such as cost of living, income levels, access to services (postal, telephone, internet), nearby schooling options if you have school-age children, etc.

The next thing to consider is your budget. Consider the possibility of changes in inflation and currency as well as to your personal income. It’s good to leave a margin of safety where you’ll be protected in the case of unexpected developments.

Another important set of factors to consider are the legal implications of buying property in Cyprus. Certain restrictions towards non-nationals are still in place, although these are expected to have vanished by 2009.

Currently, for example, there are limitations placed on foreigners when letting their property that vary on a case-by-case basis, but should definitely be investigated prior to making any commitments. As always, it’s highly recommendable to seek legal counsel for these types of details.