Cyprus is rapidly emerging as one of the Mediterranean’s most attractive property investment markets as global investors reassess their options following changes to residency schemes across Europe and growing geopolitical uncertainty in the Middle East.
New figures highlighted by UK property investment firm ERE Property show interest in Cyprus from Middle East-based buyers has surged since March, with enquiries rising by 327% and sales to non-EU buyers increasing by 23%.
The renewed interest comes after Spain closed its Golden Visa programme in April 2025 and Portugal shut its property-linked residency route in October 2023, significantly narrowing options for overseas investors seeking EU residency through property investment.
According to the Cyprus Statistical Service, residential property prices in Cyprus increased by 7.1% during 2025, while the Cyprus Department of Lands and Surveys recorded 7,255 property sales to foreign buyers last year – up 16% annually and the third-highest total on record.
RECORD TRANSACTIONS
Total transaction values across the Cypriot property market reached a record €6.5bn in 2025, according to PwC Cyprus.
Cyprus now stands out as the only major Mediterranean EU country still offering a relatively accessible property-linked residency route, with permanent residency available to non-EU buyers purchasing property worth at least €300,000, subject to income and background checks.
Helen Mercer-Jones, Managing Director of ERE Property, says: “Over the past decade the United Arab Emirates, particularly Dubai, has become one of the world’s most attractive destinations for expatriates seeking tax efficiency, global connectivity, and a high standard of living.
“However, recent conversations with our client base at ERE Property indicate a clear shift in thinking, and we have seen a 327% increase in enquiries from those located in the middle east since the start of March, while sales to non-EU buyers have increased by 23%.
“Many expatriates who relocated to the UAE for tax-free living are now actively exploring alternative jurisdictions, but crucially they do not want to return to the UK.”
FAVOURABLE ENVIRONMENT
She adds: “When assessing their options within Europe, clients have noticed that in the past few years, the alternatives have narrowed. Portugal closed the property route on its Golden Visa programme in October 2023, while Spain ended its Golden Visa entirely in April 2025.
“Greece raised its property thresholds significantly in 2024, with minimum investment in Athens, Thessaloniki and several Greek islands now set at €800,000. In contrast, Cyprus is now the only major EU Mediterranean country still operating an open property-linked residency route on broadly its original terms.”
The firm also points to Cyprus’s favourable tax environment, including a 15% corporate tax rate and a non-domicile regime allowing new residents to avoid tax on dividends, interest and rental income for 17 years.
LOW AND STABLE TAX
Mercer-Jones says: “For overseas buyers, Cyprus combines several features that no other major EU Mediterranean country currently matches. The corporate tax rate is 15%, one of the lowest in the EU, and new tax residents qualify for a non-domicile regime that means no tax on dividends, interest or rental income for 17 years.
“Plus there is no inheritance tax, no wealth tax and no annual property tax.”
She adds: “Investors looking at Mediterranean property in 2026 face a much narrower set of choices than they did three years ago. Portugal and Spain have closed their property routes, Greece has raised its prices, and conditions globally have made stability a much higher priority.
“Cyprus offers what most other markets no longer can: an open programme, a low and stable tax environment, an English-speaking legal system, and a property market that grew 7.1% in the past year. For UK investors, internationally mobile entrepreneurs and clients moving on from Dubai, it is increasingly the obvious choice.”
