Portugal is the better-known name and Cyprus is the cheaper proposition on almost every line that recurs after completion. These two also sit at opposite ends of a question that decides most purchases in this bracket: whether buying a property can still produce a residence permit.
In Portugal it cannot, and has not since October 2023. In Cyprus it can, from EUR 300,000. Everything here refers to the Republic of Cyprus, the government-controlled south.
Side by side
| Figure | Portugal | Cyprus | Source and date checked |
|---|---|---|---|
| Price per m2, capital | EUR 6,100 | EUR 2,400 | Portugal: idealista price index (Lisbon city, median asking, May 2026) | Cyprus: Investropa market survey, Nicosia (Strovolos) EUR 1,800-3,000/m2, June 2026(2026-07) |
| Price per m2, rural | EUR 900 | EUR 1,700 | Portugal: idealista/INE municipality map: 139 interior municipalities under EUR 1,000/m2, several under EUR 700/m2 | Cyprus: Investropa market survey, inland villages EUR 1,400-2,200/m2(2026-07) |
| 5-year price trend | +70% | +30% | Portugal: INE house price index, cumulative 2021-2025 (approx. +9.4%, +12.6%, +8.2%, +9.1%, +17.6% per year) | Cyprus: Central Bank of Cyprus RPPI, cumulative ca. +30% 2020-2025 (Q4 2025: +7.1% y/y, apartments +9.6%)(2026-07) |
| Total buying costs | 3 to 11% | 2.5 to 6% | Sum of the transfer tax, notary, registration and legal ranges in each country record(2026-09) |
| Transfer tax | 0.8 to 8.8% | 1.5 to 4% | Portugal: IMT 0-8% progressive (residents) plus 0.8% stamp duty; non-residents pay a flat 7.5% IMT from 1 Sep 2026 (Decreto-Lei n.º 97/2026, de 20 de maio), refundable if they become tax resident within 2 years | Cyprus: Land Registry transfer fees, charged per band on the value in that band: 3% up to EUR 85,000, 5% to EUR 170,000, 8% above. The 50% reduction on resales brings this to an effective 1.5/2.5/4%; where VAT was paid instead (new builds) no transfer fee is due at all(2026-08) |
| Rental income tax | 25% | 20% | Portugal: Flat IRS rate on residential rental income (28% for non-residential lets; lower rates for long-term contracts) | Cyprus: Progressive income tax 0-35% on Cyprus-source rent, first EUR 22,000 tax-free since the 2026 reform raised the threshold from EUR 19,500, flat 20% expense deduction; 20% is the first taxable band (22,001-32,000). Plus 2.65% GHS contribution. Special Defence Contribution on rent abolished under the same reform(2026-09) |
| Capital gains tax | 24% | 20% | Portugal: Since 2023 non-residents are taxed on 50% of the gain at progressive rates of 12.5-48%; 24 = maximum effective rate, most sellers pay an effective 6-24% | Cyprus: Flat 20% CGT on gains from Cyprus immovable property (and property-rich company shares); lifetime exemptions raised under the 2026 tax reform(2026-07) |
| Wealth tax, non-resident | Yes | None | Portugal: Portutax / AIMI regime (CIMI) | Cyprus: Cyprus levies no wealth tax on residents or non-residents(2026-07) |
| Gross rental yield | 4.3% | 5.1% | Portugal: Global Property Guide, national average for apartments May 2026 (Lisbon approx. 3.8%, Setubal up to 4.9%) | Cyprus: Global Property Guide, Cyprus average gross yield 5.09% (Q3 2025); Limassol ca. 6%, Nicosia ca. 5%, Paphos/Larnaca ca. 4%(2026-07) |
| Cost of living, EU = 100 | 87 | 89 | Portugal: Eurostat price level index, household final consumption 2024 (EU-27 = 100) | Cyprus: Eurostat comparative price level index (tec00120), Cyprus 89.2 in 2025 (2024: 91.6), EU-27 = 100(2026-07) |
| Mortgage as non-resident | Yes | Yes | Portugal: All large Portuguese retail banks run dedicated non-resident mortgage programmes | Cyprus: Cypriot banks lend to non-residents (Bank of Cyprus, Hellenic Bank a.o.); higher deposits and full income documentation required(2026-07) |
| Typical completion | 6 to 12 weeks | 8 to 26 weeks | Portugal: Cash purchases complete in 4-6 weeks; with a mortgage typically 2-3 months (promissory contract CPCV, then deed) | Cyprus: Straightforward cash purchases complete in 6-8 weeks; typical conveyancing runs 3-6 months. Non-EU Cap. 109 permit is applied for in parallel and does not block taking possession(2026-07) |
| Golden visa | Active, property does not qualify | Property qualifies from EUR 300,000 | Portugal: Law 56/2023 (Mais Habitacao) revoked the real-estate route; funds, research, cultural and job-creation routes confirmed still open in 2026 | Cyprus: Civil Registry and Migration Department, Reg. 6(2) investor permit; the May 2023 policy revision is still the framework in 2026(2026-08) |
The verdict, category by category
A table tells you what the numbers are. It does not tell you which of them should decide your purchase. That is what this section is for.
Prices
Cyprus in the capital, Portugal at the bottom of the market
Nicosia averages around EUR 2,400 per square metre against roughly EUR 6,100 in Lisbon, a difference large enough to change what your budget buys entirely. On the coast the order reverses: Cypriot coastal averages near EUR 4,000 against about EUR 3,870 in the Algarve, so they are effectively level. Portugal is far cheaper inland, with 139 interior municipalities under EUR 1,000 per square metre against Cypriot village averages near EUR 1,700. Cyprus has also appreciated more slowly, about 30 percent in five years against 70 percent in Portugal.
Buying costs
Cyprus, and the gap grows if you are a non-resident
Cyprus costs 2.5 to 6 percent in total, with no notary, no stamp duty from 1 January 2026, and transfer fees that fall to zero on a new build where VAT applied. Portugal costs 3 to 11 percent, and from 1 September 2026 non-resident buyers pay a flat 7.5 percent IMT under Decreto-Lei 97/2026 rather than the progressive resident scale, which puts them near the top of it. Portuguese notary and registry costs are genuinely low, roughly EUR 375 to 700 through Casa Pronta, but the transfer tax dominates the calculation and Cyprus wins it.
Ongoing taxes
Cyprus, decisively
Cyprus has no national annual property tax since 2017, no wealth tax, and no inheritance tax since 2000, leaving municipal charges of roughly EUR 100 to 500 a year. Portugal charges IMI at 0.3 to 0.45 percent of taxable value annually and AIMI at 0.7 percent above EUR 600,000 of residential taxable value, 1 percent above EUR 1 million and 1.5 percent above EUR 2 million. Portugal is the cheaper of the two on rental income, a flat 25 percent against a Cypriot first taxable band of 20 percent plus a 2.65 percent health contribution once you account for the Cypriot progressive scale reaching 35 percent. On capital gains they are close: a 20 percent flat Cypriot rate against a Portuguese effective rate that can reach around 24 percent for non-residents.
The buying process
Portugal, on speed
A Portuguese cash purchase completes in four to six weeks and a mortgaged one in two to three months. Cypriot conveyancing typically runs three to six months, and non-EU buyers need Council of Ministers approval under Cap. 109, limited to one residence, or since 2013 up to two properties, on a maximum of roughly 4,014 square metres of land. Portugal places no cap on how many properties a foreigner may own. Both lend to non-residents at up to about 70 percent loan to value. Cyprus offers the compensating advantage of a common-law system in professional English, which British and Irish buyers usually find easier to follow than Portuguese civil-law conveyancing.
Residency
Cyprus, because Portuguese property does not qualify
Portugal's golden visa survives but Law 56/2023 removed every real-estate route in October 2023. Qualifying now means EUR 500,000 in regulated funds with no direct or indirect property exposure, job creation, or cultural and research contributions. Cyprus grants permanent residency under Regulation 6(2) for EUR 300,000 plus VAT in a new build from a licensed developer, with proof of EUR 50,000 in secured annual income from abroad. The Cypriot caveat is Schengen: Cyprus is in the EU but outside the Schengen area, so the permit does not deliver free movement across the bloc, where a Portuguese residence permit does.
Rental yield
Cyprus, 5.1 percent against 4.3 percent
Cyprus yields 5.1 percent gross against 4.3 percent in Portugal, and Limassol reaches around 6 percent on its own. Cyprus is also the lighter regime: registration in the Deputy Ministry of Tourism register renewed every three years, the number displayed in listings, and no city-level caps or bans as of mid-2026. Portugal requires an Alojamento Local registration with fines up to EUR 40,000 without one; Decree-Law 76/2024 made licences permanent and transferable again but handed control to municipalities, and Lisbon restricts new registrations in containment zones. Cyprus wins on the number and on the paperwork.
So which one should you buy in?
Buy in Cyprus unless something specific pulls you to Portugal. It is cheaper to transact, dramatically cheaper to hold, yields more, has a lighter short-let regime, and is the only one of the two where the property itself can produce a residence permit. For a long-hold buyer the absence of annual property tax, wealth tax and inheritance tax compounds into a large number over twenty years.
Buy in Portugal if you need free movement in Schengen, if you want to buy several properties, if you are genuinely relocating and can reclaim the 7.5 percent IMT surcharge by becoming tax resident within two years, or if your budget is small enough that the interior of Portugal at under EUR 1,000 per square metre is the only thing that fits.
If the residency question is what brought you here, the sharper comparison is Greece versus Cyprus: those are the two routes that still accept property.
The next step
Get introduced to a buying agent
Tell us what you are looking for and we will put you in touch with an independent buying agent or adviser in that country. Free for you. We are paid a referral fee by the professional if a purchase completes, which is set out in full on our about page.