The unstable situation in Israel, the sense of insecurity left after the attack on October 7, 2023, and the subsequent wars are driving more and more Israelis to head to Cyprus. For many, the nearby island is turning from a vacation and investment destination into a place to settle. In some cases, into a kind of "plan B" - in case the situation in Israel worsens.
This is exactly how several Israelis, whom DW spoke to on condition of anonymity, describe their decision. "I want to have a plan B in case the situation in Israel worsens," said one of our interlocutors. He recently bought a home in a large residential complex in the Limassol area of Cyprus.
Another points to the proximity and familiar atmosphere of Cyprus as an advantage. "The flight takes 40 minutes, the landscape is the same, the climate – too. It's like you're in Israel, without actually being there."
A third links his move to business, noting that many Israeli companies have transferred part of their operations to Cyprus, which facilitates their trade with EU countries.
First and second homes
The population of the Republic of Cyprus is under one million people. And according to some estimates in the Israeli media, at least 3,000 Israeli families currently live permanently in Cyprus, with their number increasing by several hundred every year.
Tens of thousands of Israelis have already purchased property on the island, according to various Israeli publications. The newspaper "Israel Hayom" for example, reports that around 20,000 Israelis own property in Cyprus without living there year-round.
Data from the Cyprus Cadastre presented to parliament show that between 2021 and 2024, a total of 3,851 property transfers and sales contracts to Israeli buyers were registered in the coastal districts of Larnaca, Paphos and Limassol alone.
Construction projects with Israeli participation
However, Israel's interest in Cyprus extends beyond apartments and holiday homes and encompasses land, tourist complexes and large investment projects.
One of the most prominent examples is the Israeli hotel group Fattal, whose investments in Cyprus are estimated at hundreds of millions of euros and include hotels in Limassol, Paphos and Larnaca.
In Larnaca, investors with Israeli interests are also behind the reconstruction of the historic "Palm Beach" hotel - an investment worth over 110 million euros - and behind the "Aqua Residence" project, worth around 40 million euros, which envisages the construction of two 15-storey towers along the coast.
In the Limassol area, an Israeli investor plans to revive a village that has been abandoned for decades, restoring around 60 houses and building tourist facilities, a campsite and a winery. The project is located in a "Natura 2000" protected area and has sparked resistance and investigation by the competent authorities after some construction work began without the necessary planning and building permits.
Signs of a more permanent presence
At the same time, infrastructure designed for the Israeli community is becoming increasingly visible. Places of worship, shops and services for Israelis - such as restaurants offering kosher food - are open in Larnaca, Limassol and Paphos.
Advertisements in Hebrew can also be seen on the roads - including political campaign materials. Last summer, billboards of Gadi Eisenkot's "Yashar" party appeared on Cypriot highways, targeting Israeli voters.
Perhaps the clearest sign of the increasingly permanent nature of the Israeli presence is the planned construction of a private Jewish school in Polemidia, near Limassol, with a capacity of up to 1,500 students.
Reminiscent of the influx of Russian capital after 2013
All this has given further impetus to the increasingly fierce political debate over foreign investment and property ownership in general. The increased Israeli interest in Cyprus is reminiscent of the massive influx of Russian capital - a process that accelerated after Cyprus expanded its citizenship-by-investment program in the wake of the 2013 financial crisis.
AKEL, the main left-wing party in Cyprus, which is currently in opposition, has warned of the uncontrolled sale of Cypriot land to foreigners, specifically targeting purchases by Israeli citizens and the creation of gated communities with their own infrastructure.
A MP from the "Direct Democracy" party went even further, declaring that "Israel is buying Cyprus" and warning that the Cypriot economy risks becoming too dependent on Israeli capital.
These positions have provoked a sharp reaction from the Israeli side. The Israeli ambassador to Cyprus, Oren Anolik, rejected allegations of excessive Israeli influence, pointing out that the thousands of Israelis who live and do business on the island have become part of its social and economic fabric. He also warned that highlighting a specific nationality and invoking stereotypes of "foreign economic power" could fuel anti-Semitism.
Government seeks to attract foreign investment
The Cypriot government has made attracting foreign investment a key economic priority. President Nikos Christodoulides has repeatedly stated the goal of establishing Cyprus as an attractive destination for international investors.
As for Israeli investment specifically, a statement on the subject by former Minister of Energy and Trade George Papanastasiou is indicative of the Cypriot government's approach. Last year, while in office, he noted with satisfaction that "Israeli entrepreneurs are present in many sectors of the Cypriot economy", including tourism, technology, energy, healthcare and the real estate sector.
Debate in Parliament
The discussion has already reached parliament, where legislative proposals have been submitted by the country's two main parties - the left-wing AKEL and the center-right "Democratic Coalition" (DISI) - to impose restrictions on land purchases by citizens of non-EU countries.
According to AKEL, the issue of mass and uncontrolled purchases of properties by foreign citizens is also important in this context, as they are one of the factors that push property prices to levels unaffordable for the average Cypriot resident.
Author: Luciano Louritsas