Rental Yields in Cyprus by Region

At a glance

• Cyprus apartments typically deliver gross rental yields of around 4% to 6%

• Limassol leads the island, with gross yields of around 6% driven by strong corporate and expat demand

• Nicosia offers steady returns of around 5%, supported by students and professionals

• Larnaca and Paphos sit at around 4% to 6%, with Larnaca showing some of the strongest price growth on the island

• Ayia Napa and Protaras are holiday letting markets, with returns driven by a busy summer season

• Apartments consistently outperform villas and houses on yield

• Rents are still rising, with growth of 3% to 6% forecast for 2026

Why Cyprus works for rental investors

Cyprus combines year round sunshine, a growing international business community and one of the busiest tourism seasons in the Mediterranean. That mix creates two strong rental markets side by side: long lets to professionals, students and relocating families, and holiday lets to millions of visitors each year. With no annual property tax and rents continuing to climb, it's a market where the numbers stack up.

Limassol

Limassol is the island's rental powerhouse. The city has become a base for technology, shipping and financial services companies, and the professionals who work for them want modern, well located apartments. Gross yields of around 6% are typical, and seafront and city centre properties let quickly when priced correctly. For investors who want reliable long let income from quality tenants, Limassol is hard to beat.

Nicosia

The capital is the island's most stable rental market. Demand comes from university students, government workers and professionals, and it doesn't rise and fall with the tourist season. Gross yields of around 5% are common, and apartments close to the universities are among the fastest letting properties in Cyprus. Entry prices are also lower than on the coast.

Larnaca

Larnaca is the region investors are watching most closely. Prices are still well below Limassol, the waterfront is being transformed by major investment in the marina and port, and apartment prices have been rising faster here than almost anywhere else on the island. Gross yields typically sit between 4% and 6%, with the added upside of strong capital growth. Properties near the airport corridor are particularly popular with tenants.

Paphos

Paphos offers the best of both worlds. Long let demand is growing from relocators and remote workers, while Kato Paphos and the coastline attract holiday visitors for much of the year. Gross yields of around 4% to 6% are typical, with well managed holiday lets in prime spots able to do better during the season. It's a strong choice for buyers who want a property to enjoy themselves as well as let out.

Ayia Napa and Protaras

The east coast is built for holiday letting. Some of the best beaches in the Mediterranean draw large numbers of visitors every summer, and well presented apartments and villas near the sea can achieve excellent occupancy through the peak months. Returns here depend on the season, so these areas suit buyers who want a holiday property that pays its way.

Frequently asked questions

What is a good rental yield in Cyprus?

A gross yield of 5% or more is considered strong for a Cyprus apartment. Limassol and Nicosia typically sit at the upper end for long lets, while holiday lets in prime coastal locations can perform well during the season.

Which part of Cyprus has the highest rental yields?

Limassol currently leads for long term lets, thanks to demand from international companies and their employees. Nicosia follows closely, with Larnaca and Paphos offering solid yields alongside lower entry prices and strong growth.

Are apartments or villas better for rental income?

Apartments. They cost less to buy, are easier to let and typically deliver higher yields than villas or houses. Villas can perform well as holiday lets in the right location, but apartments are the more reliable choice for investors.

Should I choose long lets or holiday lets?

Long lets offer steady year round income with less management, and work best in Limassol, Nicosia and Larnaca. Holiday lets can earn more during peak months but need active management, and suit Paphos, Ayia Napa and Protaras.

What is the difference between gross and net yield?

Gross yield is annual rent as a percentage of the purchase price. Net yield takes off running costs such as management fees, maintenance, service charges and tax. As a guide, net yields tend to be 1.5% to 2% below gross.

Is rental income taxed in Cyprus?

Yes, rental income is taxable in Cyprus. How much you pay depends on your residency and personal circumstances, so speak to a Cyprus tax adviser to understand your position.

Do I need to register a holiday let?

Yes. Holiday lets in Cyprus need to be registered, and new EU rules introduced in 2026 require short term rental listings to display a registration number. Your property manager or lawyer can handle this for you.

Do the figures on this page cover Northern Cyprus?

No. All figures relate to the Republic of Cyprus, which is where every development on Propuno is located.