Στεγαστικό δάνειο (stegastiko daneio) Calculator Cyprus

Market overview

Cyprus's mortgage market is dominated by Bank of Cyprus, Hellenic Bank, Eurobank Cyprus, Alpha Bank Cyprus, and AstroBank, with the post-2013-bailout consolidation leaving a much smaller field of lenders than pre-crisis. The Central Bank of Cyprus operates within the ECB framework; after ECB cuts brought deposit rates to roughly 2.0-2.25% by early 2026, mortgage pricing has eased from the 4.5-5.5% range of 2023-2024. Following the 2013 banking crisis and bail-in, lenders maintain conservative underwriting and stricter NPL provisioning under ECB SSM supervision. The market has also been reshaped by the wind-down of the Cyprus Investment Programme (CIP / "golden passport") in 2020 and tighter AML scrutiny on Russian/CIS-linked buyers.

Why 4.25% is the typical rate

4.25% reflects a 25-year mortgage from Bank of Cyprus or Hellenic Bank to a salaried Cypriot borrower at 80% LTV in early 2026, with Cyprus banks still pricing 50-100 bps above larger Eurozone peers due to a higher cost of risk.

Tax & regulatory notes

Cyprus charges transfer fees on a sliding scale: 3% up to €85,000, 5% from €85,000-170,000, and 8% above €170,000, with a 50% reduction available on most transactions until further notice. VAT of 19% applies to new-build properties, reduced to 5% on the first 130 m² of a primary residence for qualifying buyers. There is no annual immovable property tax (abolished 2017). The Cyprus Land Development Corporation (KOAG) and Housing Finance Corporation offer subsidised mortgages to lower-income and young buyers, and foreigners (including non-EU) may buy a primary residence subject to Council of Ministers permission, typically routine.