What gross yield is realistic for a Limassol apartment?

For long-term lets: roughly 3.5–5% on standard apartments, more for studios, less for luxury towers. Treat advertised yields above 6% as a claim to verify, not a fact.

How is rental income taxed in Cyprus?

Income tax under the normal bands, GHS health contributions, and SDC of 3% on 75% of rents — with non-doms exempt from SDC. tax.com.cy models the after-tax picture per buyer; the differences are material.

Do I earn anything while the project is being built?

No — instalments sit in the developer's build, not in a yielding asset. That waiting period belongs in your return calculation, which is why off-plan yield math must use total cash deployed and realistic delivery dates.

Is short-term rental allowed in new developments?

Only if both the state registration and your project's house rules permit it — many towers and gated communities restrict short stays. Verify both before underwriting Airbnb income.

Rental Yields in Limassol: The Real Numbers

Limassol rents are strong; Limassol prices are stronger. The result is yields that look better in brochures than in bank accounts. Here are realistic gross and net numbers by property type — and the tax layer most buyers discover too late.

3–5%

Typical gross long-term yield, Limassol apartments

1.5–2 pts

Usual gap between gross and net

SDC on rent for non-doms — vs 3% on 75% otherwise

01The honest numbers

Limassol's price boom compressed its yields. Realistic gross long-term figures: studios and one-beds around 4.5–6%, standard two-bed apartments 3.5–5%, luxury tower units 2.5–3.5%, and detached villas 2–3%. Anything advertised above these bands deserves interrogation, not excitement. In much of the city you are buying appreciation with an income coupon attached — an honest plan prices it that way from the start.

02Gross to net: where the yield leaks

Net yield typically lands 1.5–2 percentage points below gross. The leaks: common expenses charged on your covered area (heaviest in towers and gated projects), management at 8–12% of rent long-term or 20–30% short-term, insurance, voids between tenants, and furniture refresh cycles. Off-plan adds a twist — brochures compute yield on today's presale price, while your money also sat interest-free through two-plus years of construction.

03Yield math and the tax layer

Developer brochures quote gross yield on the presale price — your real yield starts from total cash deployed: VAT, furniture, fees and the years of waiting included.

Then tax: rental income attracts Cyprus income tax and GHS contributions, plus SDC of 3% on 75% of rents — unless you hold non-dom status, which exempts SDC entirely. Structuring tenancy income around non-dom is core tax.com.cy territory; run the numbers before buying, not after.

04Short-term, long-term, and what actually lets

Short-term can gross more but rarely nets more once 20–30% management, cleaning, platform fees and winter seasonality land — and it requires state short-stay registration plus a check of your project's house rules, which in towers and gated communities often restrict it. Long-term demand in Limassol clusters around the business district, international schools and walkable beach access. Buy where tenants already are, not where the render says they'll be.