The Cypriot Holiday and Long Term Rental Market

Cyprus has long been a popular destination for holidaymakers, with its beautiful beaches, stunning scenery, and rich culture. In recent years, however, the country has also become increasingly popular among those looking for long-term rental properties, such as expats and digital nomads. This trend is driven by a combination of factors, including favorable tax policies, a low cost of living, and an increasingly attractive rental market. In this article, we will take a closer look at the emerging Cypriot holiday and long term rental market.

A Tax Haven for Expats

One of the main reasons for the increase in long-term rentals in Cyprus is the country’s favorable tax policies for expats. Under a special tax regime introduced in 2015, non-domiciled residents are exempt from paying tax on dividend and interest income for 17 years. This means that expats living in Cyprus can enjoy significant tax savings, making it an attractive destination for those looking to relocate.

In addition to this, Cyprus also has a double taxation agreement with over 60 countries, further reducing the tax burden for expats. This, combined with a low corporate tax rate of 12.5%, has made Cyprus a popular location for businesses and entrepreneurs seeking a favorable tax environment.

Affordable Cost of Living

Compared to other European countries, Cyprus boasts a relatively low cost of living, making it an appealing destination for digital nomads and remote workers. Accommodation, in particular, is significantly cheaper in Cyprus compared to major cities like London or Paris. It is also worth noting that food, transport, and entertainment costs are also relatively low, allowing expats and long-term renters to live comfortably and affordably.

Another factor contributing to the low cost of living in Cyprus is the abundance of fresh, locally grown produce. The fertile soil and Mediterranean climate make it an ideal location for farming, with fresh fruit and vegetables available year-round. This not only makes living in Cyprus more affordable, but also offers a healthier lifestyle for residents.

Rising Demand for Rental Properties

The combination of favorable tax policies and a low cost of living has led to a surge in demand for rental properties in Cyprus. This demand is not limited to holiday homes; many expats and remote workers are also seeking long-term rentals in popular cities like Limassol and Paphos.

In recent years, there has also been a rise in the number of co-living spaces and co-working spaces in Cyprus, catering to the growing number of digital nomads and remote workers. These spaces offer affordable living arrangements and a sense of community for those looking to live and work in Cyprus.

A Booming Holiday Rental Market

In addition to the long-term rental market, Cyprus also boasts a thriving holiday rental market. With over 325 days of sunshine per year, stunning beaches, and a rich history and culture, it’s no wonder that the country is a popular holiday destination.

Holiday rental properties in Cyprus range from luxurious seaside villas to affordable apartments, making it a popular choice for families, couples, and solo travelers. The rise of online platforms like Airbnb has also made it easier for property owners to advertise and rent out their properties, increasing the availability of holiday rentals for tourists.

Challenges and Considerations

While the Cypriot holiday and long-term rental market offer many advantages, there are also some challenges and considerations for those looking to rent in the country. One such challenge is the high demand for rental properties, which can make it difficult to secure a long-term rental in popular areas.

Another consideration for long-term renters is the language barrier. While English is widely spoken in Cyprus, particularly in tourist areas, it may be challenging to navigate everyday tasks and interactions with non-English speakers. It may be beneficial for long-term renters to learn some basic Greek phrases to help them settle in more easily.

Conclusion

Cyprus is a country that offers the best of both worlds – a vibrant holiday destination and an attractive location for long-term renters. With its favorable tax policies, low cost of living, and strong rental market, it’s no wonder that more and more expats, digital nomads, and remote workers are choosing to call Cyprus home.

As the demand for rental properties continues to rise, it is expected that the Cypriot holiday and long-term rental market will only get stronger in the years to come. For those considering a move to Cyprus, now is the time to take advantage of the opportunities and experiences that this beautiful island has to offer.