Smart investing, living and doing business in Cyprus: all updates at a glance!
Welcome to the March 2025 edition of the Cyprus-Consult newsletter. In this edition, we bring you the latest news on real estate, the economy, regulations, and lifestyle on the island.
This month is all about growth, investment opportunities, and some important legislative changes. Cyprus remains popular with foreign buyers and investors, but there are also signs of a market in transition.
Read on for all the insights.
Real Estate and Market Trends
- Real estate sales rose by 21% in January 2025 compared to the previous year. Famagusta (+40%) and Limassol (+36%) stood out.
- Foreigners account for 50% of real estate sales in 2024. Notable buyers: Israelis, Lebanese, Russians, and Ukrainians.
- New Fast-Track building permits announced for small and medium-sized projects.
- Increasingly illegal short-term rentals: 1/3 of Airbnbs are reportedly not registered.
Economy and Energy
- 3.2% economic growth expected in 2025, inflation falls to 2.1%.
- Unemployment drops to 4.7% - almost full employment.
- EU supports €1.9 billion project for Cyprus-Greece-Israel undersea power cable.
- The government is investing €8 million in water infrastructure and €3 million in desalination plants for hotels.
Important Regulations
- Tax reform in preparation:
- Corporate tax of 12.5% ? 15%
- Dividend Withholding Tax (SDC) for residents of 17% ? 5%
- New deductions for greening, training and digitalization
- Rules regarding foreign real estate ownership through companies are being tightened.
- New urban amnesty scheme: regularization and compensation possible for certain construction errors.
Investing & Living in Cyprus
- New luxury projects in Limassol and Akamas attract high-net-worth investors.
- Mortgage interest rate: 2-4.5% for new construction, 5-7.5% for existing homes.
- From 2026: Green tax on hotel stays for a more sustainable tourism sector.
- Nicosia is growing steadily (+13%), partly due to young families and technology companies.
Keep investing smart. Stay informed. See you next month!
Team Cyprus-Consult
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