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Why Tech Companies and Investors Are Flocking to Cyprus’s Tax Paradise

By admin@345,

Cyprus offers a surprising and attractive alternative for international investors and entrepreneurs. The island’s tax system is ranked as one of the most entrepreneur and investor-friendly in the world, offering a series of significant advantages that are hard to find elsewhere.

Exceptionally Attractive Tax System

The most significant benefit for investors is the unique tax structure: the first €19,500 per year is completely tax-free (and for rental income from apartment rentals, there’s a possibility of tax exemption up to €30,000 per year), with comfortable progressive tax brackets beyond that. Furthermore, workers arriving in Cyprus for the first time and earning over €55,000 per year enjoy an impressive tax benefit – 50% tax exemption on their income for up to 17 years.

Exceptional Business Opportunities

Cyprus’s business system offers significant advantages for entrepreneurs: corporate tax of only 12.5% – among the lowest in Europe, and even corporate tax of just 2.5% for technology companies. Complete exemption from capital gains tax on stock sales, and Non-Domicile status that grants close to 0% tax on dividends. The only tax payment is 2.65% to the healthcare system, and even that is capped at a maximum of €4,770 per year.

Diverse Immigration Pathways

Cyprus offers several flexible immigration routes tailored to different needs: Pink Slip visa for remote workers with income over €40,000 per year, and for employees in local companies with work visas, Yellow Slip visa for EU citizens, and permanent resident visa for investors purchasing property worth €300,000 or more. This diversity allows anyone interested in residing permanently in Cyprus to find the most suitable pathway.

Company Formation: Simple, Fast, and Efficient

Setting up a company in Cyprus is a simple and fast process, costing between €1,000-2,000 and completed within a week. For those who are not EU citizens, a work visa can be obtained by transferring a temporary deposit of €200,000, which can be withdrawn after completing immigration processes. A Cypriot company serves as an excellent platform for business activity in Europe, including employing staff and conducting VAT-free transactions.

Advantages for Capital Market Investors

One of the standout advantages in Cyprus is the complete exemption from capital gains tax on securities trading. Investors residing on the island can trade on international stock exchanges without paying tax on profits – a significant benefit that’s hard to find in other Western countries.

So What Does This Mean for You as Real Estate Investors?

Cyprus is not just another European investment destination. Unlike Greece or Portugal, something special is happening here – a real economic revolution.

We’ve been living here for 13 years and see it happening in real-time: massive technology companies are moving all their operations here because of the fantastic tax benefits. Every month, new companies arrive with thousands of employees and entire families. The result? Enormous demand for housing and continuous price increases.

And the island itself? Completely transformed. Michelin-starred restaurants, luxurious casinos, modern shopping centers, golf courses, and stunning real estate projects. Cyprus is becoming the business center of the Middle East thanks to its tax and residency policies.

Most importantly – this is just the beginning. There’s enormous growth potential here.

At Nexton, with 13 years of proven experience in Limassol and collaboration with leading international groups, we know exactly where and how to invest. We don’t just promise high returns – we promise you’ll sleep peacefully.

Cyprus: Your Gateway to European Permanent Residency

By admin@345,

Cyprus: Your Gateway to European Residency

Just a short flight from major regional centers lies one of the most attractive pathways to European residency. Cyprus, the sun-drenched Mediterranean island, offers much more than stunning beaches and enchanting natural landscapes – it provides an accessible and relatively fast route to permanent residency in the European Union.

The Royal Road to Europe

Cyprus’s Permanent Residency (PR) pathway is considered one of the most attractive routes in Europe today. At its center is an investment of €300,000 or more in a new property from a developer, plus VAT. The pathway is particularly suited for families looking to secure their future in Europe, with emphasis on tech professionals and those in liberal professions.

Entry to the program requires an annual income of €50,000 for the main applicant, plus €15,000 for a spouse, and an additional €10,000 for each child. For an average family, these are achievable amounts, especially for tech workers and sought-after professionals.

New Life on the Island of Sun

Life in Cyprus offers a perfect combination of European quality of life with warm Mediterranean atmosphere. The island boasts a high-level international education system, advanced healthcare system, and vibrant international community. Particularly in the main cities – Limassol, Larnaca, and Paphos – you can find all the advantages of modern living alongside family-oriented and community atmosphere.

Limassol, the island’s tech capital, attracts many young families thanks to its developing technology scene. Larnaca, with its international airport, offers a more family-oriented atmosphere and more comfortable real estate prices. Paphos, on the other hand, mainly attracts an older British and European population and offers a quieter, more relaxed atmosphere.

Tax Advantages

One of the most attractive focal points in Cyprus is its appealing tax policy. The country offers relatively low tax rates, including corporate tax of only 12.5%, 2.5% tax for technology companies, and close to 0% tax on dividends for company owners. For remote workers, Cyprus provides the opportunity to continue working for foreign companies while utilizing the advantages of the attractive tax system.

Thriving International Community

In recent years, a thriving international community has developed in Cyprus, particularly in Limassol. The community includes young families, business people, and tech workers. The community infrastructure includes active cultural centers, diverse restaurants, and a variety of social and cultural activities.

Looking Forward

After seven years of residence on the island, including five years of effective presence, the possibility opens to apply for Cypriot citizenship. This is a significant opportunity for families planning their future in Europe, with the possibility of full freedom of movement within the European Union space.

The decision to move to Cyprus is a significant step, but proper planning and appropriate professional guidance make the process clear and accessible. The island offers a unique opportunity for international families seeking to combine high quality of life with business opportunities and a future in Europe.

Cyprus is not just another investment destination – it’s an opportunity to build a new life in a place that combines all the advantages of Europe with convenience and regional accessibility. For international families seeking their way to Europe, Cyprus offers the most accessible and promising pathway.

So How Do You Start?

Purchasing one or two properties, with a cumulative investment of at least €300,000, will allow anyone, even without a European passport, to obtain permanent residency in Cyprus. Choosing the right property for your investment will make your journey to permanent residency in Cyprus a decision that will significantly impact your quality of life on the island and the success of the entire process.

As part of this complex process, it’s important to work with professional entities who know the local market and all aspects of the process. Nexton, one of Cyprus’s leading real estate development companies, specializes in guiding international families on their path to permanent residency on the island.

The company offers a comprehensive solution for investors interested in benefiting from the Permanent Residency program, from finding the property that suits you as part of the company’s rich property portfolio, to completing the process of obtaining permanent residency in Cyprus.

Nexton’s professional team understands the unique needs of international families. We offer properties that meet all the criteria for permanent residency, accompany you through the bureaucratic process with authorities, and work in collaboration with leading lawyers and accountants on the island. Our guidance includes assistance with acclimatization, getting to know the local community, and ongoing support even after the move.

Cyprus is not just another investment destination – it’s an opportunity to build a new life in a place that combines all the advantages of Europe with convenience and regional accessibility. With Nexton by your side, the dream of a new home in Cyprus is closer than ever to realization.

Cyprus Real Estate: A Strategic Investment Destination for International Investors

By admin@345,

Only a short flight away from most European countries, Cyprus offers unique real estate investment opportunities. In recent years, Nexton, one of the leading real estate companies in Cyprus, reports a significant increase in interest from international investors.

“The trend has been building over recent years,” explains Assaf Tessler, partner and Operations Manager at Nexton. “We’ve seen significant acceleration as more international investors recognize Cyprus’s potential. With a portfolio of over a hundred apartments in Limassol and 13 years of market experience, we’re witnessing a meaningful shift in investor profiles.”

This trend receives substantial support from the Cypriot government. Official data shows that in 2024 alone, approximately 10,000 workers from around the world relocated to Cyprus, along with their families. Government policy, including a low corporate tax rate of 12.5% and dividend tax of nearly 0%, makes the island particularly attractive for capital holders transferring entire tech companies to Cyprus with their employees and families.

According to Tessler, demand is significantly higher than in other areas of Cyprus, particularly in Limassol, which has become Cyprus’s tech hub. “Unlike other cities, Limassol offers substantial employment opportunities, especially in tech. Around 500 technology companies have already chosen to establish their centers here, ensuring stable demand for rental apartments.”

Additionally, Cyprus enjoys significant growth in the tourism industry, with over 3.8 million tourists visiting the island in 2024. “The thriving tourism creates substantial demand for both hotel rooms and short-term rentals through platforms like Airbnb and Booking,” Tessler explains. “This generates higher income streams for apartment owners engaged in short-term rentals.”

Three Types of Investors

Tessler’s analysis reveals an interesting picture of three main investor types. The first group, comprising about 35% of buyers, consists of professional investors – typically experienced real estate professionals seeking to diversify their investment portfolios who recognize significant growth potential in Cyprus.

The second and largest group, about 60% of buyers, comprises investors looking to combine investment with residence – they purchase apartments that will serve them for vacations while generating income from short-term rentals the rest of the time.

The third group, about 5% of buyers, includes families planning a complete move to Cyprus, whether for quality of life reasons, lower cost of living, or seeking peace and stability.

Strategic Focus on High-Demand Areas

“At Nexton, we focus on high-demand areas, primarily in Limassol, and build compact, efficient apartments designed from the outset to provide the highest returns for real estate investors purchasing through us,” Tessler explains. “For example, we design two-bedroom apartments of 65 sqm instead of 85 sqm, so our property prices are lower compared to competitors – after all, you pay per square meter – but the rental yields they generate are higher.”

Growing International Community

Thousands of international professionals already live permanently in Cyprus, with many more holding apartments on the island while maintaining businesses or jobs in their home countries. “We see this trend only strengthening,” Tessler notes. “Investors understand that beyond attractive prices, Cyprus offers economic stability, high quality of life, and excellent connectivity to major regional markets.”

The Importance of Local Market Knowledge

Nexton emphasizes the importance of choosing the right property and deep understanding of the local market. “With 13 years of experience and a portfolio of over 100 apartments, we understand the local market demands very well,” Tessler stresses. “In cities like Paphos or Larnaca, you can find cheaper properties, but the lack of employment opportunities creates seasonal and unstable rental demand. Real estate investors purchasing in these areas take significant additional risk that they’re mostly unaware of – that their property will stand empty for extended periods. At Nexton, we focus on building properties that match real tenant market needs and create stable, long-term value.”

Cyprus Real Estate Investment: Behind the Dream

By admin@345,

You’ve probably already seen them – the tempting social media ads featuring investment apartments in Cyprus promising dream returns, stunning views, and the perfect escape from the stress back home. And who can ignore the fact that owning a property in Cyprus can generate yields of 7-8%?

In the past two years, a wave of investors has discovered the enormous potential in Cyprus real estate investments. The market responded quickly: local entrepreneurs identified the opportunity and established an entire system of consulting, brokerage, and property management services. In every living room conversation and social gathering, stories emerge of more and more investors jumping on the bandwagon – some for vacation purposes, others for remote work in a pleasant and cheaper atmosphere, and many simply as a pure investment.

But let’s talk about the reality behind the dream. When buying an apartment in Cyprus, it’s important to understand that the decision must be professional and calculated, with emphasis on understanding the local market and its real needs. We spoke with Jordan Bear, Operations Manager of Nexston Real Estate Group in Cyprus, who brings an interesting perspective on the market.

“Cyprus indeed offers attractive investment opportunities for Israeli investors,” explains Bear, “especially when compared to the equity required in other countries when buying an apartment. However, the key to success lies in deep understanding of the local market and its dynamics. It’s true to say that in Cyprus, returns of 6-8 percent on new real estate properties with investments of 200-400 thousand euros are completely possible – but only when you understand the different areas in cyprus well.”

Bear emphasizes a critical point that many ignore: “Unfortunately, a large part of real estate companies operating towards the foreign investment market focus on marketing elements like proximity to casinos, future marinas in Larnaca, and ‘lifestyle’ with pools and stunning views – points that look good in the sales presentation but don’t necessarily translate to real demand from tenants in the field.

We, with 13 years of experience in the local market and a portfolio of over a hundred apartments in Limassol, have learned that success is measured by the ability to match the property to the real needs of the local rental market. This means understanding who the potential tenants are, what specific areas they’re looking for and why they choose those areas, and how to build properties with attractive pricing that will generate high and stable returns over time.”

Rental Potential

When examining an investment in Cyprus, it’s crucial to first understand the rental potential in the area. It’s important to understand – not every area in Cyprus is equal in terms of investment potential. For example, Limassol, which for years has been the exclusive center of growth for all hi-tech companies coming to Cyprus, offers many employment opportunities and attracts engineers and technology professionals from around the world. In contrast, Paphos and Larnaca, despite being charming tourist cities, offer more limited employment opportunities. This means that in Limassol, demand for rental apartments is high throughout the year, thanks to the thriving hi-tech community and the presence of international companies. Conversely, in cities like Paphos, rentals focus mainly on the market looking to move away from the center to pay cheaper rent, and on seasonal short-term tourism, which may significantly affect your annual return, regardless of how beautiful the view from the apartment you bought.

Right-Sized Apartment – The Key to Successful Investment

A critical point that dramatically affects the success of your investment is choosing the right size of the property you’re purchasing. In the Cyprus market, many new projects offer impressive and spacious apartments, designed mainly to attract buyers, but not necessarily ideal in terms of the return you’ll receive.

It’s important to understand: a larger apartment doesn’t necessarily generate proportionally higher rent. In other words, while you’ll pay a significant premium for additional square meters, the potential tenant won’t necessarily be willing to pay accordingly. The result? Lower return on your investment.

Here’s a simple example:

Large 2-bedroom apartment:

  • 85 sqm (2 bedrooms)
  • Purchase price: €360,000
  • Monthly rent: €2,400
  • Annual return: 7.2%

Small 2-bedroom apartment:

  • 60 sqm (2 bedrooms)
  • Purchase price: €300,000
  • Monthly rent: €2,000
  • Annual return: 8%

In other words, efficient planning of the apartment in terms of size significantly reduces the apartment’s cost, but only slightly reduces monthly rent. The meaning? Higher return on your investment.

Another important point: during periods of market slowdown or decreased demand, an apartment that cost you less will allow you more flexibility in the rental price. This is a critical point that many investors miss – the flexibility and marketability of the property are no less important than immediate return.

This is why at Nexton we focus exclusively on compact and efficient apartments that offer the optimal ratio between purchase price and rental income potential.

“Guaranteed” Return

“Guaranteed return” is one of the most dangerous traps in Cyprus real estate market, and there’s good reason to be wary of it. When contractors or marketing companies promise returns of 5%-7% for the first two-three years, what they don’t tell you is that this return is already embedded in the apartment’s price itself. Simply put – you’re paying in advance for this “guaranteed” return in the inflated price of the property.

For example, if an apartment is worth €200,000, and the contractor promises a 6% return for two years (meaning €12,000 for two years), it’s likely that he simply added this amount to the apartment’s price and set it at €212,000. So in practice, you’re not really getting a return – you’re simply getting your own money back in installments.

Moreover, guaranteeing such a return raises serious questions about the business model: if the deal is so good, why does the contractor need to guarantee a return? And what will happen after the guarantee period ends? Often it turns out that the real price of the apartment is significantly lower, and that the actual return in the free market is much lower than what was guaranteed.

There have already been cases in Cyprus where investors discovered that an apartment they bought for €220,000 with “guaranteed return” was actually worth only €180,000 – meaning they paid a premium of €40,000 for a “guarantee” that ultimately was essentially a return of their own money.

“Successful investment in Cyprus, one that will yield high long-term returns, requires deep understanding of the local market, choosing the right property, and working with experienced professionals,” concludes Jorden Bar, partner and Operations Manager of Nexton in Cyprus. “With 13 years of experience in the local market and a portfolio of over a hundred apartments in Limassol, Nexson builds properties for investors interested in optimal returns. If you’d like more information about our properties, fill out the form on this page, and we’ll be happy to share the knowledge and experience we’ve accumulated, and help you make the right decision for you.”

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      Which Areas of Limassol Offer the Best Real Estate Investment Opportunities?

      By admin@345,

      Limassol: Cyprus’s Investment Capital

      Stretching along a stunning 20-kilometer coastline, Limassol is Cyprus’s second-largest city and the preferred destination for investors, international migrants, and major tech companies. With a population of approximately 350,000 residents, the city offers a unique blend of vibrant business life, world-class education, and Mediterranean quality of life.

      Premium Neighborhoods – Limassol City Center

      Neapolis, Mesa Getonia, and Agios Nicolaos form the city’s traditional luxury districts. Within walking distance of the beaches and most employment hubs, these neighborhoods command the highest per-square-meter prices in Cyprus. Their proximity to entertainment and business centers makes them particularly sought-after among international tenants.

      The Coastline and Tourist Area

      The waterfront neighborhoods present a fascinating mix: older buildings constructed decades ago that require renovation work (yet still command relatively high prices), alongside gleaming skyscrapers built in recent years. These luxury high-rises offer stunning panoramic sea views with apartments reaching up to €20,000 per square meter.

      Limassol’s Old Town

      The old town forms the beating heart of Limassol. Here, among picturesque alleyways and bustling restaurants, past and present meet in perfect harmony. On weekends, the area transforms into a central entertainment hub, with bars, restaurants, and clubs drawing residents from across the city and surrounding areas. This district sits close to Limassol’s marina and the city’s green lung – the MOLOS park. Most real estate in this area targets the student population, though it also features older homes housing locals and foreign workers.

      Above and Below the Highway

      The city naturally divides between north and south, with the highway serving as a natural boundary between different residential areas. The south, essentially the city center, has traditionally been the more expensive area due to its proximity and accessibility to the sea. It’s characterized by denser construction and higher prices per meter.

      The northern area of Limassol (above the highway) is more luxurious in the neighborhoods overlooking the sea, and mostly contains luxury villas. This is primarily because land there is cheaper, allowing for the construction of spacious villas in upscale neighborhoods like Agios Athanasios and Germasogeia. These areas attract families due to their proximity to the island’s leading private schools, such as the prestigious Foley’s School and Golden Oak, as well as the amazing sea views.

      The New West

      The western area of the city is an alternative zone – many of you may know it as “Zakaki.” This is an area mostly inhabited by residents with limited financial means, with few employment opportunities, and it’s about a 25-minute drive from the city center (not accounting for traffic). However, the area has undergone a genuine transformation led by the new casino project and MyMall shopping center, attracting significant infrastructure and construction investments primarily due to relatively cheap land prices. Currently, this is still a developing area, but it presents an opportunity for investors to benefit from relatively attractive prices before the expected rise in property values.

      The Private School Zone in Polemidia

      Limassol boasts a wide variety of international private schools, including Heritage, Grammar School, Pascal, and Silverline. These schools offer British curriculum and serve as magnets for international families. Some investors are purchasing residential real estate in these school areas, which remain relatively affordable since they don’t experience high demand at this stage.

      Returns and Pricing

      Studio apartments in the city center range from €180,000-220,000, one-bedroom apartments in the city center range from €190,000-250,000, while two-bedroom apartments can reach €400,000 in sought-after areas. Average returns range from 6% to 8%.

      Looking Forward

      With infrastructure development in the city’s west, expansion of the passenger port, and establishment of new entertainment and leisure centers, Limassol is set to continue its growth trajectory. The city attracts more and more technology, fintech, and shipping companies, bringing international workers and strengthening the local real estate market.

      For investors and families seeking the perfect combination of quality of life, high-level education, and investment potential, Limassol offers a unique opportunity in the Eastern Mediterranean. Whether you’re looking for an apartment in the bustling city center, a home in the private school district, or an investment in the developing western areas, Limassol is a city that offers options for every taste and budget.

      At Nexton, we choose the location of our projects very carefully – in central and sought-after areas of Limassol with strong rental demand. Our 12 years of specialization in the city have given us deep knowledge of every corner, every neighborhood, potential tenants, and market dynamics. This experience translates into real advantages for our clients. We prefer to invest in excellent locations rather than cheap alternatives, out of commitment to executing successful deals for our buyers – this is what matters most to us, and we prioritize this even over the profitability of our own projects.

      To learn about exciting projects in each of the areas we’ve mentioned, please fill out the details on this page.