Maximise your success in the Airbnb business in Cyprus

The political stability and security in Cyprus make the island a reliable destination for investments, both in real estate and other business sectors.

Cyprus has witnessed impressive economic growth in recent years, providing a stable economic environment for investors. The country achieved a growth rate of 5.6 % in 2022, and a growth of 2.5 % is projected for 2023.

The sun-soaked island has been increasingly popular for years, leading to a steady rise in visitor numbers. This trend boosts the demand for holiday accommodations and long-term rental properties, ensuring continuous rental income.
In 2022, approximately 3.2 million tourists visited the island. The integrated Casino Resort in Limassol is expected to attract about 300,000 additional high-spending guests annually. New luxury hotels with adjacent golf courses, along with the expansion of Larnaka and Ayia Napa marinas featuring luxury apartments, upscale dining, and modern shopping centers, will make the island even more appealing.
Predictions indicate that by 2027, around 14 million tourists will visit the island annually.

The holiday rental market in Cyprus has been experiencing consistent growth for years. A revenue of approximately €31.0 million is expected in 2023. Looking ahead, the future holds even more promise: a revenue of approximately €40.6 million is forecasted for 2027, indicating an average annual growth rate of 7.02%.

The Cypriot government has initiated a program for the long-term and sustainable promotion of flight connections to Cyprus. Approximately €165 million has been allocated for the expansion of flight connections until 2027.

The island offers an appealing tax structure for real estate investors. Profits from the sale of property held by private individuals are subject to a tax of 20 %. For properties held within a Cypriot Ltd, there is a corporate tax rate of 12.5 %, one of the lowest in Europe. Cyprus's double taxation agreements with countries like Germany, the United Kingdom, and Israel further enhance its attractiveness.

In September 2023, the credit rating agency Moody's upgraded Cyprus's creditworthiness to Investment Grade, from Ba1 to Baa2. The outlook for the Cypriot economy was changed from stable to positive. Moody’s expects a decrease in public debt from 86.5 % (in 2022) to below 60 % by 2027.

Experience the enchantment of Cyprus's mediterranean climate! Here, you can enjoy not only mild winters and sun-kissed summers but also a year-round tourist magnet. The island attracts visitors throughout the year, all seeking holiday rentals. Why? Because here, the sun shines for 320 days a year, totaling 3,285 hours! To put it in perspective: Germany: 1,716 hours of sunshine, UK: 1,387 hours of sunshine.

Cyprus offers diverse real estate opportunities, from stunning beachfront villas redefining luxury to elegant city apartments embodying modern lifestyle. The variety of properties is virtually limitless, presenting a unique opportunity: you can diversify your portfolio with an amazing range of property types. Whether you aim to target holidaymakers, digital nomads, or long-term renters, here you can find the perfect home for every audience.

Until its independence in 1960, Cyprus was a British Crown Colony, and English was the official language on the island. Even today, English remains the everyday language and is widely used in business, further enhancing the island's appeal for foreign investors and tourists.

As a member of the European Union, Cyprus provides investors with access to the EU market and its associated economic advantages. EU membership contributes to the stability of the legal framework and the business environment.

Cyprus's natural beauty, including its beaches, mountains, and historical sites, attracts people from all over the world. The high quality of life Cyprus offers acts as a magnet for foreign investors and holiday home owners.