Ever more Israelis moving to and investing in Cyprus

The volatile situation in Israel and the prolonged sense of insecurity following the October 7, 2023 attacks and the wars that followed have prompted a growing number of Israelis to turn to the Republic of Cyprus.

For many, the nearby island is evolving from a holiday and investment destination into a place to settle permanently — and, in some cases, a "Plan B" in the event of a deterioration of the situation in Israel.

That is precisely how several Israelis who spoke to DW on condition of anonymity described their decision.

"I want to have a Plan B in case the situation in Israel gets more difficult," said one Israeli who recently bought a home in a large residential development in Cyprus' Limassol district.

Another pointed to Cyprus's proximity and familiarity: "It's a 40-minute flight, the same landscape, the same climate. It's like being in Israel without actually being there."

A third linked his move to business, saying that many Israeli companies have transferred some of their operations to Cyprus, making it easier for them to do business with EU countries.

First and second homes

The population of the Republic of Cyprus is less than a million.

According to estimates cited by Israeli media, at least 3,000 Israeli families now live permanently in Cyprus, with their number increasing by several hundred each year.

Israeli media reports also speak of tens of thousands of Israelis who have purchased property on the island. The newspaper Israel Hayom has reported that around 20,000 Israelis own property in Cyprus without living there year-round.

Figures from the Cyprus Land Registry presented to parliament show that between 2021 and 2024, a total of 3,851 property transfers and sale contracts involving Israeli buyers were recorded in the coastal districts of Larnaca, Paphos and Limassol alone.

Israeli-backed developments

But Israeli interest in Cyprus extends beyond apartments and holiday homes to land, tourism developments and major investment projects.

One of the most prominent examples is the Israeli hotel group Fattal, whose investments in Cyprus are estimated to run into hundreds of millions of euros and include hotels in Limassol, Paphos and Larnaca.

In Larnaca, investors with Israeli interests are also behind the redevelopment of the historic Palm Beach hotel, an investment of more than €110 million, as well as the roughly €40 million Aqua Residences project, which foresees the construction of two 15-story towers along the seafront.

In the Limassol district, an Israeli investor is planning to revive Trozena, a village that has been abandoned for decades, by restoring around 60 homes and developing tourism facilities, a campsite and a winery.

The project, located within a Natura 2000 protected area, has sparked opposition and an investigation by the relevant authorities after some work began without the required planning and building permits.

Signs of a more permanent presence

At the same time, infrastructure catering to the Israeli community is becoming increasingly visible.

Places of worship, businesses and services for Israelis — such as restaurants offering kosher dining — have opened in Larnaca, Limassol and Paphos.

Hebrew-language advertisements can also be seen along the roads — including political campaign material. Last summer, billboards for Gadi Eisenkot's Yashar party targeting Israeli voters appeared along Cypriot highways.

Perhaps the clearest indication of the increasingly permanent nature of the Israeli presence is a planned private Jewish school in Polemidia, near Limassol, for up to 1,500 students.

Reminiscent of the influx of Russian capital after 2013

All of this has added momentum to an increasingly heated political debate over foreign investment and property ownership in general.

The debate is further shaped by what critics describe as Cyprus's unconditional diplomatic support for Israel and by the island's previous experience with the massive influx of Russian capital, which accelerated after Cyprus expanded its citizenship-by-investment program following the 2013 financial crisis.

Some of the strongest political criticism has come from Stefanos Stefanou, secretary general of Cyprus' Progressive Party of Working People (AKEL), and Fidias Panayiotou, MEP and leader of the Direct Democracy party.

Akel is Cyprus's main left-wing party, and currently in the opposition. Stefanou warned of uncontrolled sales of Cypriot land to foreigners, specifically referring to purchases by Israelis and what he described as the creation of gated residential communities with their own infrastructure.

Panayiotou went further, claiming that "Israel is buying Cyprus" and warning that the Cypriot economy risks becoming overly dependent on Israeli capital.

The remarks prompted a strong response from the Israeli side.

Israel's ambassador to Cyprus, Oren Anolik, rejected claims of excessive Israeli influence, arguing that the thousands of Israelis living and doing business on the island have become part of its social and economic fabric.

He also warned that singling out a particular nationality and invoking stereotypes about "foreign economic power" could fuel antisemitism.

Government keen to attract foreign investment

The Cypriot government has made attracting foreign investment a key economic priority, with President Nikos Christodoulides repeatedly stressing the goal of establishing Cyprus as an attractive destination for international investors.

When it comes specifically to Israeli investment, a statement by former Energy and Commerce Minister George Papanastasiou is indicative of the government's approach.

Speaking in 2025, while still in office, Papanastasiou said the government was "pleased to note that Israeli businesspeople are present in many sectors of the Cypriot economy," including tourism, technology, energy, health and real estate.

Debate in parliament

The debate has now reached parliament and has broadened to encompass property purchases by third-country nationals in general.

Lawmakers are considering legislative proposals from the country's two major parties, the left-wing AKEL and the center-right Democratic Rally (DISY), aimed at imposing restrictions on land purchases by non-EU nationals.

One of the proposals was submitted by DISY MP Nikos Georgiou. Speaking to DW, he said that "in recent years, land purchases by foreign nationals have reached unprecedented proportions," affecting "the demographic composition, land values and, in some cases, national security."

Georgiou stressed that his proposal "is not directed against any country or its citizens," adding that the debate should take place "without scaremongering, without rhetoric directed against citizens of any third country."

AKEL has submitted a similar legislative proposal. Speaking to DW, AKEL MP Giorgos Koukoumas said his party had raised the issue of mass and uncontrolled property purchases by foreign nationals because they are "one of the factors driving property prices to such levels that it becomes impossible for the average Cypriot to buy or even rent a home in the country's urban centers."

He also referred to concerns among what he says is a significant section of Cypriot society, specifically regarding purchases by Israelis.

These concerns, he said, "obviously have to do with the reality of sweeping acquisitions of major business enterprises and large areas of land by Israelis, the successive Israeli media reports speaking of the creation of a 'second Israel in Cyprus,' combined with the Israeli intelligence presence on our island and the relations with Israel in the fields of defense and security that have been promoted by the Cypriot government in recent years."