Island refuge: how Cyprus became the preferred destination for Israeli property investors
500 tech companies in Limassol • 10,000 relocations in a single year • 3.8 million tourists • 12.5% corporate tax • And three distinct investor profiles.
Less than an hour's flight from Israel, Cyprus offers a distinctive set of property investment opportunities. Since the outbreak of the war, Nexton — one of the leading property companies on the island — has reported a significant rise in interest from Israeli investors.
"The trend began before the recent crises," explains Yarden Bar, partner and head of operations at Nexton, "but we certainly saw a sharp acceleration. With a portfolio of more than a hundred apartments in Limassol and 12 years in the market, we are witnessing a real shift in the investor profile."
Government policy is the tailwind
In 2022 alone, roughly 10,000 workers from around the world relocated to Cyprus together with their families. Policy — a 12.5% corporate tax rate and 0% tax on dividends — makes the island particularly attractive to capital owners moving entire technology companies, staff and families included.
Demand concentrates in Limassol, the island's tech hub. Unlike other cities, Limassol offers substantial employment: around 500 technology companies have already chosen to base their centres there, which guarantees steady demand for rental apartments.
Tourism adds a second income channel
Cyprus is also enjoying a tourism boom, with more than 3.8 million visitors in 2023. Thriving tourism creates significant demand for both hotel rooms and short-term rentals through platforms such as Airbnb, opening higher-income channels for apartment owners who operate short-term lets.
Three investor profiles
About 35% are professional investors — experienced in property, diversifying their portfolio and identifying real growth in Cyprus. The largest group, around 60%, combines investment with personal use: apartments used for holidays and let short-term the rest of the year. A further group are families planning a full move to Cyprus, for quality of life, lower cost of living, or simply quiet and stability.
Around 15,000 Israelis already live in Cyprus permanently, and another 20,000 own an apartment on the island while keeping a business or job back home.
Building for the market that actually exists
"We design two-bedroom apartments at 65 sqm instead of 85 sqm, so our prices are lower than our competitors' while the rental yield is higher," says Bar. "In cities like Paphos or Larnaca you can find cheaper assets, but the lack of employment and the older population create unstable rental demand — and investors there carry a significant risk they are often unaware of: long vacant periods."
