🇨🇾 Cyprus
Cyprus is the closest foreign investment to Israel - a 40-minute flight - and has become a second home to tens of thousands of Israelis: English everywhere, a British-tradition legal system, some of Europe's friendliest taxation (zero annual property tax since 2017, a reduced 5% VAT under conditions), and a permanent-residency track through buying a new property. Paphos, the tourism capital of the west, offers new projects at EUR 2,500-4,000 per sqm with 4.5-6.5% yields from long-term and holiday rentals. On this page: the data, taxes on both sides, the buying process including the Cypriot title-deed caution, the risks, and our flagship - a real Paphos compound you can explore in 3D, apartment by apartment.
Market data: July 2026, public sources (Cyprus Land Registry, RICS Cyprus, published developer data). Estimates for illustration only - not investment, tax or legal advice.
Based on real market data; not specific marketed projects.
Buy in Cyprus with an independent lawyer (not the developer's): they verify the land is free of developer encumbrances - the critical island check - and deposit the sale contract at the Land Registry, giving you specific-performance protection before a separate title deed exists for the unit. New-build deed issuance takes years in Cyprus - not a problem when you buy correctly (deposited contract + clean land + a bank waiver where the developer has a mortgage), but it is why independent counsel is a condition, not a suggestion. Non-EU buyers file a routine Council of Ministers application - a months-long formality that does not delay possession.
Buying from a developer you pay VAT: 19% as a rule, and only 5% on the first 130 sqm when it is your first Cyprus home used as your residence - a benefit worth hundreds of thousands of shekels, subject to conditions you must verify in advance. When VAT is paid, the transfer fee is waived. Holding: zero annual property tax. Renting: tiered Cypriot income tax with a generous base exemption. Selling: 20% on the gain with allowances. And in Israel: normal reporting, with the Israel-Cyprus tax treaty crediting tax paid - no double taxation, but advance planning with an accountant is mandatory.
Cyprus's history of delayed title deeds is the known risk - well managed with independent counsel, never to be skipped. Also check: developer strength and the payment schedule (prefer construction-linked payments), Paphos supply pockets that lean on tourism and short lets (verify long-term rental demand in the specific area), EUR/ILS exposure, and management costs in compounds with pools and amenities. Figures on this page are market estimates for illustration, not investment, tax or legal advice.
Yes. Israelis (non-EU) need routine Council of Ministers approval - a months-long formality that does not delay possession. Thousands of Israelis buy on the island every year.
The relief applies to the first 130 sqm of a first Cyprus home used as the buyer's residence, subject to caps and conditions. Commercially renting the unit during the relief period can trigger a proportional clawback - verify in advance with your lawyer.
The property track: buying a new property of at least EUR 300K (plus VAT) and proving annual income from abroad. It covers the nuclear family and needs no continuous stay - a visit every two years suffices. It is not EU citizenship.
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Market data: July 2026, public sources (Cyprus Land Registry, RICS Cyprus, published developer data). Estimates for illustration only - not investment, tax or legal advice.