Property maintenance in Cyprus: utilities, taxes, and rent

Homebuilding trends in Cyprus are surprising at their pace, and they are continuing to grow exponentially. The demand for real estate is growing as there are more and more people that want to invest their money in the real estate market of the island. This is not surprising considering that residential real estate can not only become a comfortable home, but also provide a convenient and stable income for its owner.

What are the expenses associated with owing a property in Cyprus? How profitable is it to rent it out property? These and other questions that may concern the owners of residential real estate on the island of Cyprus we will consider further in the article .

Property tax in Cyprus

In 2017, one of the main annual property taxes was abolished and currently the home owners are due only the council tax. The funds received from collecting this tax are used to keep the streets clean, maintain public lighting, sewage and garbage collection. Therefore, today it is most profitable to invest in real estate in Cyprus and in addition investors can apply for a residence permit in just 2-4 months. For more information on how to apply for a residence permit in Cyprus, see the article.

Utilities in Cyprus

The cost of utilities in Cyprus is very reasonable. We will now consider the average cost and important nuances of each utility bill paid on the island by the home owners.

Electricity. Invoices are due every 2 months. It is very important to carry out the payment on time - if the payment is delayed, the owner receives an official reminder, and if after that the bills are still not paid, the electricity for the house/apartment is cut off. Electricity bills on the island are arguably the highest among other utilities. Most of this amount goes for the energy consumed by the air conditioning - it is almost impossible to do without one during the summer months in Cyprus.

Water supply. As with electricity, there is a fixed amount that is paid regardless of the amount of the resource used. Cyprus water bills are calculated on a progression basis. That is, the more water is used, the more expensive each subsequent amount will cost. One thing to remember about the water supply in Cyprus is that there is no centralized warm water. Homeowners can solve this issue on their own, for example, by installing water heaters. It is worth noting that many Cyprus developers resolve this issue at the construction stage and install the heaters directly.

Gas. There is no central gas supply in Cyprus. If necessary, the residents of the island may buy gas bottles. Each gas vessel is enough to last for an average of two or three months. As a result, electric stoves and ovens are more popular in Cyprus, as they are more convenient to use and the food is cooked much faster. Please note that this is another reason why electricity bills are the highest in Cyprus.

Heating. There is no central heating on the island, but this does not mean that it will not be needed at all on this warm Mediterranean island. The heating season lasts a maximum of 3 months - during the winter months it can get quite cool and damp, so you cannot do without heating in the house. For this purpose air conditioners or electric heaters are used - the cost is paid by the owner of the home, individually.

Other expenses

• Communication services. The leading providers of telecommunication services in the country are CYTA, PRIMETEL, EPIC. All their current rates can be found on the official websites. We recommend choosing packages that include a phone and TV at once.
• Insurance. Home insurance is not compulsory on the island, but it is recommended to get it at the purchasing stage.
• Communal fees in gated communities. If an apartment or house in Cyprus is located in an urbanized area with a communal infrastructure, the owner will need to pay for its maintenance. At properties located outside the city, there will be no such costs. But in this case, the home owner will need to take care of the pool, garden and other features near his property on his own.

Rental

Cyprus is a popular island among tourists from all over the world. Residential real estate is always in demand here, especially in the summer season. Properties on the island can be rented out and the owner can receive a stable income from this. There are long term as well as short term and daily rentals on the island.

• Long term rent. The average cost of a long-term apartment rental in Limassol starts from about 550 euros, in Paphos - 300 euros. Villas are rented from 850 euros in Limassol and from 600 euros in Paphos. Obviously, these examples of costs are very relative and vary from property to property. After all, the rate depends on many factors - the level of comfort, the number of bedrooms,the location of the rental relative to the sea and many other characteristics. For long-term rentals, utilities, council tax and other expenses are paid by the tenant.
• Daily rentals. It is profitable for an owner to rent out their property on a daily basis if it is located in close proximity to the sea. To be able to rent out your property this way, you need to apply for a license from the Cyprus Tourism Organization. In the case of short-term rentals, the income is much more attractive than for long-term rentals, and the long tourist season will provide a constant flow of tenants. However, there is one dwonfall - with daily rentals, maintenance costs increase significantly and, in addition, the homeowner may need to hire a manager if he does not want to communicate and handle the tenants on his own. Do note that when buying property in a residential complex in Cyprus, very often developers will offer a property management service if you do not plan to live on the island permanently, so pay attention to this point when choosing a property. Cyprus Sotheby’s International Realty specialists will help you choose the best options for your specific situation.

As you can see, the maintenance of real estate in Cyprus has a number of specific characteristics, the understanding of which will help the owner solve many of the issues that arise from buying real estate on the island.