Published on and written by Cyril Jarnias
Cyprus, with its favorable business environment and strategic position at the crossroads of Europe, the Middle East, and Africa, attracts numerous entrepreneurs looking to establish their companies there. Whether you’re seeking commercial space, an office, or a warehouse, this guide will help you navigate the leasing process in Cyprus, providing essential information on property searches, key agencies, costs, and available support.
Finding the Hidden Gem: Strategies for Locating Your Business Space
Searching for suitable business premises in Cyprus might seem daunting, but with the right approaches, you can quickly find space that meets your needs. Here are some effective strategies:
Utilize online platforms: Websites like BuySellCyprus, Bazaraki, and CyprusProperty.com offer a wide range of commercial properties for rent. These platforms allow you to filter searches according to specific criteria such as location, size, and budget.
Engage local real estate agents: Cyprus real estate professionals have in-depth knowledge of the local market and can save you valuable time in your search. Reputable agencies like Elit Blue, Altamira Real Estate, or Cyprus Sotheby’s International Realty often maintain diverse portfolios of commercial properties.
Explore economic activity zones: Cyprus features several business parks and industrial areas, particularly in Limassol and Nicosia, offering spaces suitable for businesses of all sizes. Limassol Marina and Nicosia Business Center are examples of areas favored by international companies.
Network with the local business community: Join chambers of commerce or entrepreneur associations in Cyprus. These networks can provide valuable advice and sometimes even unpublished rental opportunities.
Good to know:
Cyprus commercial leasing law offers significant protection to tenants, with leases typically established for a minimum duration of 3 years. Make sure to fully understand your rights and obligations before signing a contract.
Key Players in the Cypriot Commercial Real Estate Market
To facilitate your search for business premises in Cyprus, it’s essential to know the main real estate agencies specializing in the commercial sector. Here are some of the most reputable agencies:
Elit Blue: This leading agency offers a wide range of commercial properties, from offices to retail spaces and warehouses. Their multilingual team provides personalized service to international businesses.
Altamira Real Estate: Specializing in high-end real estate, Altamira maintains an impressive portfolio of commercial premises, particularly in Limassol and Nicosia.
Cyprus Sotheby’s International Realty: Globally recognized, this agency offers leasing services for prestigious commercial spaces throughout the island.
Pafilia Property Developers: Although primarily known for residential developments, Pafilia also offers commercial spaces in strategic locations.
FOX Smart Estate Agency: This dynamic local agency stands out for its deep knowledge of the Cypriot market and personalized approach for commercial clients.
It’s recommended to contact several of these agencies to get a comprehensive market overview and compare offers. Don’t hesitate to communicate your specific criteria, such as desired size, budget, and particular features your business requires.
Good to know:
Some of these agencies offer complementary services such as assistance with obtaining business permits or connecting with local contractors for potential renovation work.
Leasing Application: Essential Documents
To lease commercial space in Cyprus, you’ll need to prepare a complete application. Property owners and real estate agencies typically require the following documents:
- A copy of the passport or ID card of the company’s legal representative
- A company registry extract (if already established in Cyprus) or equivalent documents from your home country
- Bank references or proof of financial solvency
- A business plan or description of planned activities in the space
- Financial guarantees, such as a bank guarantee or advance rent payments
Specifics for foreign companies: If your company isn’t yet registered in Cyprus, you’ll need to provide additional documents, including:
- Certified translations of your company documents
- Proof of tax registration in your home country
- A letter of intent detailing your establishment plans in Cyprus
Permits and authorizations: Depending on your business nature, you might need specific permits. For example, companies in the food or tourism sectors must obtain licenses from local authorities. Make sure to verify specific requirements for your sector with the Cyprus Ministry of Energy, Commerce and Industry.
Good to know:
It’s highly recommended to engage a local attorney specializing in commercial law to assist with your application preparation and lease negotiation. This can help avoid potential legal issues and ensure your interests are well protected.
Leasing Budget: How Much Does Business Space Cost in Cyprus?
The cost of leasing business space in Cyprus varies considerably depending on several factors, particularly location, size, and property type. Here’s an overview of price ranges you can expect:
Offices: – In Nicosia and Limassol business centers: €10 to €25 per m² per month – In peripheral areas: €5 to €15 per m² per month
Commercial premises: – Prime locations in city centers: €20 to €40 per m² per month – Secondary commercial areas: €10 to €25 per m² per month
Warehouses and industrial spaces: – Industrial zones near major cities: €3 to €8 per m² per month – Modern warehouses with integrated offices: €5 to €12 per m² per month
It’s important to note these prices are indicative and may vary depending on finish quality, building age, and included services. Additionally, remember to account for additional charges:
- Common charges (for office buildings): typically between €1 and €3 per m² per month
- Property tax: often the tenant’s responsibility, varies according to property value
- Insurance: mandatory, to be negotiated with the owner
- Security deposit: generally equivalent to 2 or 3 months’ rent
Negotiation and flexibility: The Cypriot commercial real estate market is often open to negotiation. Don’t hesitate to discuss lease terms, particularly duration, renewal options, and renovation possibilities. Some owners may offer rent-free periods or contributions to renovation work to attract quality tenants.
Good to know:
VAT (currently 19% in Cyprus) generally doesn’t apply to commercial rents, unless the owner voluntarily chooses to apply it. Always verify whether quoted rent is exclusive or inclusive of VAT.
Attractive Cities: Where to Establish at Lower Cost?
Although Nicosia and Limassol are Cyprus’s main business centers, other cities offer interesting opportunities for businesses seeking lower-cost establishment:
Larnaca: With its international airport and port, Larnaca is experiencing full economic development. Rents are generally 20-30% cheaper than in Limassol, while offering excellent connectivity.
Paphos: This coastal city is attracting more technology and service sector businesses. Rents are competitive, and the high quality of life is an asset for attracting talent.
Paralimni: Located in the Famagusta region, this city offers interesting opportunities for tourism and service sector businesses, with establishment costs significantly lower than in major cities.
Industrial zones: The industrial parks in Ypsonas (near Limassol) and Dali (near Nicosia) offer spaces at advantageous rates for manufacturing or logistics companies.
Emerging towns: Locations like Aradippou (near Larnaca) or Geroskipou (near Paphos) are actively developing their economic activity zones, offering attractive incentives for new establishments.
When choosing your location, consider not only rental costs but also:
- Proximity to potential clients and suppliers
- Accessibility for your employees
- Transport infrastructure (roads, airports, ports)
- Availability of qualified workforce in the region
Good to know:
Some municipalities offer tax incentives or subsidies for businesses establishing in priority development zones. Check with local chambers of commerce to learn about specific opportunities in each region.
Support Programs: Business Leasing Assistance
Cyprus offers several assistance and incentive programs to encourage business establishment on its territory. While direct leasing assistance is limited, several initiatives can indirectly reduce your establishment costs:
“Fast Track Business Activation” Program: This program, managed by the Ministry of Energy, Commerce and Industry, aims to accelerate the establishment process for foreign businesses in Cyprus. It includes assistance finding suitable premises and can facilitate negotiations with property owners.
- Corporate tax rate of 12.5%, one of the lowest in the EU
- Tax exemption on dividends and capital gains on securities
- Tax deductions for R&D investments
Innovation grants: The Cyprus Research and Innovation Foundation offers grants for innovative businesses, which can be used to cover part of operational costs, including premises leasing.
Free zones: Companies operating in the Larnaca and Limassol free zones benefit from customs and tax advantages, along with potentially more favorable rents.
Municipal support: Some municipalities, particularly in secondary cities, may offer local incentives such as reductions on municipal taxes or assistance in finding premises.
“Invest Cyprus” program: This government initiative provides comprehensive support to foreign investors, including advice on commercial real estate and connections with property owners and real estate agencies.
- Contact the Cyprus Investment Promotion Agency (CIPA) for personalized support
- Consult local chambers of commerce to learn about region-specific initiatives
- Explore Ministry of Energy, Commerce and Industry programs dedicated to foreign businesses
Good to know:
Technology and innovation sector businesses can benefit from additional advantages, particularly under the “Cyprus Startup Visa” initiative that facilitates establishment of innovative startups on the island.
Conclusion: Cyprus, Land of Opportunity for Your Business
Finding the ideal premises for your business in Cyprus is a crucial step in your expansion strategy. With its modern infrastructure, attractive tax regime, and strategic geographical position, Cyprus offers an environment conducive to business development.
By following this guide’s advice, you’ll be well equipped to navigate the Cypriot commercial real estate market. Remember to:
- Clearly define your space and location needs
- Compare offers from multiple real estate agencies
- Carefully prepare your leasing application
- Explore secondary cities for lower-cost opportunities
- Research available assistance and incentives
With a methodical approach and help from local professionals, you’ll undoubtedly find the space that will allow your business to thrive on Cypriot soil.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
