International consulting firm Henley & Partners, which specialises in investment migration and residency programmes, has published its new Henley Private Wealth Migration Report 2026. As part of the study, experts ranked countries according to their attractiveness for high-net-worth individuals considering relocation, obtaining residency, or moving their business to another jurisdiction.
According to the report, Cyprus ranked first among European countries, scoring 73.5 out of 100 on the Wealth Mobility Competitiveness Score. The index evaluates factors such as the tax system, quality of life, safety, political stability, protection of property rights, and the efficiency of public institutions.
Cyprus Outperformed Europe's Largest Economies
In the latest ranking, Cyprus placed ahead of many of the traditional destinations favoured by investors and wealthy individuals. The island was followed by the Netherlands (72.8 points), Portugal (72.5 points), and Italy (72.3 points).
Meanwhile, Europe's largest economies ranked noticeably lower. The United Kingdom scored 68.3 points, Germany 69.7, and France just 65.7. The report's authors note that wealthy individuals are increasingly looking beyond the size of a country's economy, placing greater importance on quality of life, tax efficiency, levels of bureaucracy, and opportunities for international business.
Why Wealthy Foreigners Choose Cyprus
In recent years, Cyprus has become one of the leading destinations for the relocation of international companies. The island has been particularly popular among businesses in the IT sector, financial services, shipping, and investment industries. Additional advantages include its favourable climate, high level of safety, well-developed banking system, English common law framework, and relatively straightforward residency procedures for investors and entrepreneurs.
The country's tax system also plays a significant role. Cyprus remains one of Europe's most competitive jurisdictions thanks to a range of incentives for new tax residents, international professionals, and business owners. Real estate experts also note that the island continues to attract buyers looking for both permanent homes and investment properties. Demand remains especially strong in Limassol, Paphos, Larnaca, and Nicosia.
The Other Side of Success
However, the rapid influx of wealthy foreign residents is having a significant impact on the local property market. The effects are most visible in Limassol, now considered Cyprus' most expensive city. In recent years, demand for rental accommodation has far exceeded supply, pushing rental prices close to those seen in major European capitals.
Today, renting a one-bedroom apartment in central Limassol typically costs between €1,200 and €1,800 per month. Two-bedroom apartments are frequently rented for €2,750 or more, while even small studio apartments increasingly command around €1,400 per month.
Property purchase prices have also continued to rise. The average price of residential property in Limassol has reached approximately €3,450 per square metre. As a result, a standard two-bedroom apartment can cost anywhere between €330,000 and €500,000, depending on its location and features. According to local analysts, the construction of luxury residential developments in recent years has not fully addressed the shortage of housing in the mid-market segment.
Rising prices are having a particularly significant impact on local residents. With the average net monthly salary in Cyprus standing at around €2,400, home ownership is becoming increasingly unaffordable for many families. Young couples are more frequently postponing the purchase of a home, opting for smaller apartments or relocating to suburban areas where property prices remain lower.
What Lies Ahead for the Cyprus Property Market?
Despite these challenges, analysts believe international investor interest in Cyprus will remain strong in the coming years. The island continues to strengthen its position as a regional business hub in the Eastern Mediterranean and as an attractive destination for entrepreneurs, investors, and highly skilled professionals.
However, the future development of the property market will largely depend on the government's ability to increase housing supply, modernise infrastructure, and maintain a balance between the interests of international investors and the needs of the local population.
For now, Cyprus remains one of Europe's most attractive destinations for wealthy individuals, reinforcing its reputation as an international centre for living, business, and investment.