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Cyprus Rental Market Remains Steady Amid Rising Demand and Regional Variations

by THEFUTURE.TEAM
August 11, 2025

Market Resilience Amid Rising Demand

The rental market across Cyprus continues to demonstrate remarkable stability, successfully balancing upward demand with an influx of new housing units. This dynamic equilibrium, as highlighted by Marinos Kineyirou, President of the Cyprus Real Estate Agents Registration Council, benefits both tenants and property owners by establishing a dependable and predictable market environment.

Regional Economic Drivers and Their Impact

Kineyirou’s insights reveal that while rental prices remain largely stable, notable disparities persist between regions. In Limassol, for instance, escalating rental costs are attributable to the city’s emergence as an international business hub. The convergence of multinational investments and an influx of highly skilled professionals has fueled demand for premium housing, thereby driving rental figures upward. Conversely, Nicosia’s vibrant student population has spurred a targeted expansion in housing designed to meet academic needs, ensuring moderate price adjustments despite significant demand.

Data-Driven Insights: Rental and Purchase Prices

The Council president provided detailed pricing data that underscores the region-specific trends. In Paphos and Larnaca, the monthly rental rate for a one-bedroom apartment is recorded at €500, while Limassol leads with prices reaching up to €1,100. When examining purchase prices, Paphos offers opportunities starting at €85,000 for a one-bedroom apartment compared to Limassol’s higher range, with costs peaking at €170,000. Beyond these basic figures, variations in apartment configurations—from one-bedroom to three-bedroom units—offer a comprehensive view of the market’s balanced growth across key urban centers.

Strategic Interventions and Market Adaptability

Strategic investments in student-specific housing have been integral in stabilizing rental levels in both Nicosia and Paphos. The establishment of dormitories alongside university infrastructures has mitigated the risk of rapid price escalations. In contrast, Larnaca, where student demand is less pronounced, continues its development at a steady pace, without the same upward pressure on rental prices experienced in other cities.

Conclusion: A Balanced Outlook for Cyprus Real Estate

Overall, the reported data and expert analysis reveal a market characterized by its adaptability and strategic response to varying regional demands. As economic and business developments, particularly in Limassol, drive heightened rental prices, targeted interventions in educational hubs ensure that the broader market remains balanced and accessible. Cyprus’ ability to maintain stability amidst a surge in demand remains a compelling indicator of its resilient real estate sector.

EU E-Commerce VAT Systems Generate €257.9 Million Revenue for Cyprus in 2024

by THEFUTURE.TEAM
August 11, 2025

Robust Revenue Growth Through Streamlined VAT Collection

Cyprus has demonstrated a significant fiscal boost in 2024 with €257.9 million generated from the European Union’s e-commerce VAT systems, according to Tax Commissioner Sotiris Markides. This impressive performance underscores the effectiveness of the One Stop Shop (OSS) and Import One Stop Shop (IOSS) frameworks in simplifying cross-border tax compliance.

Simplified Procedures for EU and Non-EU Businesses

The OSS system allows Cyprus-registered businesses to streamline VAT declaration and payment on sales to consumers in other EU countries. Companies simply register on the local OSS platform, apply the consumer’s VAT rate, aggregate their submissions quarterly or monthly, and remit a single consolidated payment. Subsequently, Cyprus allocates the appropriate share to each respective EU country. This efficient process extends to non-EU sellers as well, who can have their intra-EU distance sales managed under the Union Scheme.

Breakdown of VAT Revenue Streams

Last year’s declarations under the various schemes illustrate the system’s broad reach: €217.9 million was collected via the Union Scheme, €36.9 million through the Non-Union Scheme, and €3.1 million via the Import Scheme. While the Union Scheme caters to both EU and non-EU sellers engaging in distance sales, the Non-Union Scheme specifically accommodates non-EU firms delivering services to EU consumers. Furthermore, the Import Scheme targets goods valued at less than €150 that are imported from outside the EU.

Implications and Broader Impact

Implemented in July 2021 as an evolution from the more limited MOSS system, these reforms have not only consolidated tax collection through an expansive OSS but also integrated the IOSS for low-value imports. By designating certain online marketplaces as “deemed suppliers,” the new framework ensures that VAT collection is both efficient and equitable. Across the EU, these mechanisms have generated over €33 billion in VAT revenues in 2024, reflecting a successful effort to simplify tax compliance, reduce administrative burdens, and promote fair taxation across the bloc.

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