British insurance company William Russell has carried out a new study highlighting the best destinations for property investment in 2025.
Cyprus was ranked 24th out of 36 countries. According to the agency, rental yields in the island state will remain at 4.77% until the end of 2025. It should be noted that Cyprus' relatively low position in the ranking is mainly due to the high cost of buying property on the island, especially in popular cities such as Limassol, Nicosia and Paphos.
Nevertheless, Cyprus remains an attractive destination for foreign investors due to a number of key factors:
- Excellent non-resident tax policies;
- A well-developed tourism industry, which ensures a high demand for rental properties;
- A legal system based on UK law and a high level of transaction security;
- Growth prospects due to the expansion of the Golden Visa programme and new property projects.
Incidentally, thanks to its stable economy, favourable geographical location and excellent quality of life, Cyprus remains one of the countries that continues to attract the interest of investors seeking not only income but also a safe place to invest.
The William Russell study assessed the key factors of investment attractiveness: property tax rates, rental income tax and gross rental yields.
Interestingly, Moldova unexpectedly topped the list of the best places to buy a home, a year after Lithuania took the top spot. Now it has moved into second place, with North Macedonia in third.
Moldova is seen as an emerging high-yield market for investors willing to take moderate risks. The cost of buying a property here is only up to 2.8% of the value of the property, and the rental tax rate is capped at 12%, providing a high yield. The Chisinau market is particularly attractive due to the rapid development of infrastructure, hospitality and business activity. At the same time, the country is still a candidate for EU accession.
Lithuania, in second place, is showing strong property price growth of almost % per annum in the final quarters of 2024, making it an interesting choice for long-term investment.
Northern Macedonia, which completes the top three, offers investors low taxes, simplified property purchase procedures and government incentives. Gross rental yields here are an impressive 6.47% per annum.