Gross yields in Cyprus sit around 4.5-5.9% depending on city and flat size, and net yields run roughly 1.5-2 points lower. Here is what drives the gap.
Investment property in Cyprus usually returns about 4.5% to 5.9% gross a year on an apartment, and roughly 1.5 to 2 percentage points less once costs and tax are taken out. Prices have been rising faster than rents, which is good for capital growth and tight for yield. This guide shows what the numbers look like by city and by type, what eats the return, and what to buy for which goal. Figures are indicative as of October 2026 and are not a promise for any single unit. For what you pay to buy, see Cyprus property prices and buying costs.
Gross yield by city
Gross yield is annual rent divided by the purchase price, before any cost or tax. Global Property Guide put the average gross yield in Cyprus at about 4.9% in the first quarter of 2026. Other market sources quote a slightly higher apartment average, closer to 5.4%, so treat the real market range as roughly 4.7% to 5.4%.
By city, for apartments (first quarter of 2026, gross):
- Limassol: about 5.3% on average. A one-bedroom at around €265,000 shows about 5.9%, a two-bedroom at around €417,000 about 5.8%, a three-bedroom at around €750,000 about 4.3%
- Nicosia: about 4.7%. One-bedroom around €145,000 at about 5.4%, two-bedroom around €225,000 at about 4.7%, three-bedroom around €350,000 at about 3.9%
- Paphos: about 4.7%. One-bedroom around €220,000 at about 4.8%, two-bedroom around €325,000 at about 4.4%, three-bedroom around €400,000 at about 4.8%
- Larnaca: typically 4% to 4.5%, with prices that are still rising fast
The pattern is simple: small units yield more than large ones, because the rent does not grow in line with the price. The bigger and more expensive the property, the lower the yield and the more you are buying for lifestyle or capital growth.
Gross versus net: what eats the yield
All the figures above are gross. A common rule of thumb is that net yield is 1.5 to 2 points lower. So a 5.9% gross one-bedroom in Limassol is closer to 3.9%–4.4% net. The main items:
- Vacancy: months without a tenant, or between holiday guests
- Service charges and building costs: higher in modern complexes with pools and lifts
- Municipal charges: usually a few hundred euros a year. Cyprus has had no annual immovable property tax since 2017
- Management: a letting or management company takes a share of the rent
- Repairs and furnishing: especially for holiday lets
- Tax on rental income: see below
Tax on rental income
Non-residents are reported to be taxed on Cypriot rental income under the same income tax scale as residents, with rates between 20% and 35% on higher income. A 20% wear-and-tear allowance is deducted automatically from gross rent, so only 80% is taxable whatever you actually spend. A healthcare (GHS) contribution of 2.65% on gross rent is also reported to apply, and the special defence contribution on rent is reported to have been abolished from 2026. Personal allowances and your home-country tax treatment can change the result, so check with a Cypriot tax adviser before you model returns. Capital gains tax on a later sale is a separate topic: Cyprus capital gains tax on sale.
Long-term let or holiday let
A long-term let gives steadier income and lower management cost. Holiday lets can earn more but depend on season, platform rules and licensing. Market sources quote net yields for well-run holiday lets of about 5.5% to 7.5%, with occupancy of 60% to 75%, and higher in good Paphos locations. Management usually costs 18% to 25% of revenue. These are agent and portal claims, not guarantees, and an unlicensed holiday let can be refused or fined. Read the rules first: Cyprus short-term rental rules. Limassol is described as the strongest all-year market, Paphos as more tourist-driven with a UK and European season.
Apartments, villas and off-plan
- Apartments: the most liquid and the highest yield on a per-euro basis, especially one- and two-bedroom units in Limassol and Nicosia
- Villas: more lifestyle than yield. Larger prices pull the percentage down, though a villa with a private pool in Paphos can fill a long season as a holiday let
- Off-plan: you pay in stages and start earning only after completion, so the yield is on paper until then and the return depends mainly on capital growth and on the developer delivering on time. We found no reliable yield figures for off-plan, so we give none. Compare options in new build vs resale in Cyprus
What to buy for which goal
- Maximum rental yield: a one- or two-bedroom apartment in Limassol or Nicosia, resale or completed
- Balance of price and growth: Larnaca, where entry prices are lower and growth has been strong
- Holiday use plus income: Paphos, in an area where holiday lets are permitted
- Capital growth and lifestyle: larger units and villas, accepting a lower yield
Whatever the goal, check the legal side before the numbers: investment risks in Cyprus, and be careful with promised returns, see guaranteed rental schemes: the catch.
FAQ
What is a good rental yield in Cyprus? Roughly 4.5% to 5.5% gross on an apartment is typical, and 3% to 4% net is a realistic expectation for a long-term let. Higher figures usually involve holiday lets, small units or optimistic assumptions.
Which Cypriot city has the highest yield? Limassol shows the highest gross average among the main cities, followed by Nicosia and Paphos, but it is also the most expensive to enter. Compare actual listings and rents.
Do I pay tax on Cyprus rental income as a non-resident? Yes, rental income from Cypriot property is taxable in Cyprus, with a 20% allowance on gross rent. The exact amount depends on your total income and on tax treaties, so ask a tax adviser.
Can I rely on a guaranteed yield from a developer? Treat it with caution. Guaranteed returns are often built into the price, and they are only as good as the developer behind them.
How we help
We shortlist Cypriot properties to your goal, model the gross and net return with realistic vacancy, service charges and tax, and coordinate local lawyers and tax advisers. See also the Cyprus country page and our Cyprus property guide.
This article is informational only and is not legal, tax or investment advice. Figures are indicative, come from market sources and change over time; confirm current numbers before you buy.