Investing · 7 min read
Cyprus property rental yields, honestly
Gross yield is a marketing number. This is how to get to a net figure you can actually plan around.
Last updated 26 July 2026
Indicative gross yields
Long lets in Limassol commonly produce gross yields in the region of 4–5.5%, with lower vacancy because demand comes from professionals and families rather than tourists. Holiday lets in strong coastal locations can gross 6–8% in a good year, but with far higher costs and season risk.
Prime seafront property tends to yield less and appreciate more; mid-market apartments near employment tend to yield more and appreciate less.
From gross to net
Subtract these before you compare a property to any other investment.
- Management — 8–12% of rent for long lets, 15–25% for holiday lets
- Service charge on a managed development
- Insurance, municipal tax and sewerage charge
- Maintenance and periodic redecoration — budget 1% of value annually
- Vacancy — one month a year on a long let is a realistic planning assumption
- Income tax on rental profit
- For holiday lets: utilities, linen, cleaning, platform commission and licensing
A worked long-let example
A €550,000 two-bedroom apartment letting at €2,100 per month grosses €25,200, which is 4.6%. Deduct 10% management, a €1,200 service charge, €500 insurance and municipal charges, €5,500 maintenance reserve, and one month of vacancy, and the pre-tax net lands near €15,400 — about 2.8% net on price before tax.
That is a normal, workable number for a prime European coastal city. Any promoted figure far above it is either gross, or optimistic.
What actually drives returns
Location relative to employment and schools, quality of the building envelope (which determines running costs and tenant retention), and whether the unit is the best or the worst in its building. In a nine-unit development, the corner home with the deep terrace lets faster at a higher rent for as long as it exists.
Holiday letting: the practical reality
Short-term letting requires registration on the national register of self-catering accommodation, carries occupancy tax obligations, and depends on airport capacity and season length. Treat it as a small business with a property attached, not passive income.
Frequently asked
- Are holiday lets legal in Cyprus?
- Yes, provided the property is registered on the official self-catering register and meets the relevant standards; unregistered short-term letting carries penalties.
- What is a realistic net yield on a new-build Cyprus apartment?
- For a well-located long let, plan on 2.5–3.5% net before tax after full costs and realistic vacancy, with total return depending on capital growth.
This guide is general information, not legal, tax or financial advice. Rules and rates change — take advice specific to your circumstances before you commit.
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