In recent years, an increasing number of Israeli citizens have been buying homes, investing in businesses and moving to Cyprus. For some, the island is becoming a permanent home or a backup option; for others, it offers an opportunity to invest and operate within the European Union market. At the same time, rising demand is fuelling debate over housing prices, foreign purchases of land and the influence of overseas capital.
Why Israelis are choosing Cyprus
Against the backdrop of the difficult situation in Israel, some Israelis have begun to view Cyprus not only as a holiday or investment destination, but also as an option for permanent residence. One Israeli buyer who recently purchased a home in a large residential complex in the Limassol area said he wanted to have a “Plan B” in case the situation in his country deteriorates further.
Other buyers cite Cyprus’s proximity to Israel and its familiar climate as the main advantages. The flight takes around 40 minutes, while the natural environment and weather are broadly similar. Business considerations are also influencing relocation decisions. Some Israeli companies are moving part of their operations to Cyprus to make it easier to work with European Union countries.
How many Israelis live in Cyprus and own property on the island
The population of the Republic of Cyprus is less than 1 million. According to estimates cited by Israeli media, more than three thousand Israeli families live permanently on the island, while several hundred more families arrive each year. The number of property owners is significantly higher. According to an estimate by Israel Hayom, around 20,000 Israelis own property in Cyprus but do not live on the island permanently.
Data from the Cyprus Department of Lands and Surveys presented to Parliament show that between 2021 and 2024 Israeli buyers were involved in 3,851 property transfers and sale agreements in the coastal districts of Larnaca, Paphos and Limassol. Israeli capital is also involved in major tourism and construction projects:
- the Fattal hotel group has invested hundreds of millions of euros in projects in Cyprus;
- in Larnaca, investors linked to Israel are involved in the redevelopment of the historic Palm Beach hotel, a project worth more than €110 million;
- another project in Larnaca, Aqua Residences, is worth around €40 million and provides for the construction of two 15-storey towers on the coast;
- in the Limassol district, Hungarian-Israeli businessman and investor Uriel Kertész proposed restoring around 60 houses in the abandoned village of Trozena. The project also includes tourism infrastructure, a campsite and a winery.
Trozena is located within a Natura 2000 area. The project sparked protests and became the subject of an investigation by the authorities following reports that some works had begun without the necessary building and planning permits.
The Israeli community is expanding its infrastructure
The growing Israeli presence is visible not only in the property market. More and more businesses and services aimed at the community are appearing in Larnaca, Limassol and Paphos. These include:
- places of worship;
- kosher restaurants;
- companies and services operating in Hebrew;
- Hebrew-language advertising, including political advertising.
Last summer, billboards promoting Gadi Eisenkot’s Yashar party appeared on roads in Cyprus, targeting Israeli voters living on the island. Another sign of the community’s long-term presence could be the construction of a private Jewish school in Polemidia near Limassol. It could accommodate up to 1,500 pupils.
At the same time, debate has intensified over the impact of foreign capital on the Cyprus property market. Concerns include rising housing prices, the purchase of large plots of land by foreign nationals and the dependence of certain sectors of the economy on overseas investment.
Parliament discusses restrictions for buyers from outside the EU
The issue of land purchases by foreign nationals is already being discussed in Parliament. The country’s two largest parties — left-wing AKEL and centre-right DISY — have proposed restricting land purchases by citizens of non-EU countries. AKEL General Secretary Stefanos Stefanou has said that sales of Cypriot land to foreigners have reached a significant scale. As one example, he referred to purchases by Israeli citizens and the construction of gated residential complexes with their own infrastructure.
MEP and Direct Democracy party leader Fidias Panayiotou has used even stronger language, claiming that “Israel is buying Cyprus”. Israeli Ambassador to Cyprus Oren Anolik, however, rejected claims of excessive Israeli influence. According to him, Israelis who live and work on the island are becoming part of its social and economic life.
The ambassador also warned that singling people out on the basis of nationality and speaking about “foreign economic power” could contribute to the spread of antisemitic stereotypes. The Cyprus government, meanwhile, views the attraction of foreign investment as one of its priorities. President Nikos Christodoulides has repeatedly described Cyprus as an attractive destination for international investors. In 2025, then Energy and Commerce Minister George Papanastasiou noted that Israeli entrepreneurs were actively operating in Cyprus in sectors including tourism, technology, energy, healthcare and real estate.
The debate in Cyprus is therefore developing along several lines at once: the country wants to attract international investment, local residents are concerned about housing affordability, and the authorities and wider society are discussing how to regulate foreign ownership of property without putting pressure on particular national or religious communities.