Russian buyers accounted for 51% of foreign residential property purchases in Cyprus in 2025, according to a report published by Russian business magazine Business Petersburg.

Cyprus Retains Its Pull For Russian Capital

Despite European sanctions and tighter banking controls, Cyprus continues to attract Russian property buyers. According to the report, the island’s appeal lies in its European Union membership, established Russian-speaking community, favourable tax environment and permanent residence programme linked to the purchase of newly built property.

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Drawing on insights from real estate executives, the publication said Russian buyers remained the largest foreign group in the market. Many are purchasing homes not only to preserve wealth but also to relocate businesses, particularly technology companies, and establish a long-term presence within the EU.

Where Demand Is Concentrated

Interest remains strongest in newly built homes priced between €500,000 and €1.5 million, with Limassol, Larnaca and Paphos continuing to attract the highest demand.

Another key factor is Cyprus’ permanent residence programme. Foreign nationals who purchase newly built property worth at least €300,000 may qualify for permanent residency, making the scheme an important incentive for overseas investors seeking long-term stability and access to the European market.

Banking Compliance Remains A Barrier

Tighter compliance requirements introduced after sanctions against Russia have made property transactions more complex.

According to the report, purchases can now take between three and six months to complete as Cypriot banks carry out enhanced due diligence and request additional documentation. Those procedures have increased both transaction times and administrative costs for buyers.

Risks In The North Temper Enthusiasm

The report also examined the property market in northern Cyprus, where lower prices and more flexible payment terms continue to attract some Russian investors.

At the same time, it warned that the territory’s lack of international recognition and longstanding property ownership disputes create significant legal uncertainty. Particular caution was advised when considering properties built on land that may be subject to claims by displaced Greek Cypriot owners.

The Republic Remains The Safer Bet

While northern Cyprus may offer lower purchase prices, Business Petersburg concluded that the Republic of Cyprus remains the more secure option for investors seeking legal certainty, access to the European market and a stable regulatory environment.

For buyers balancing cost against long-term security, those advantages continue to outweigh the lower entry prices available in the north.