Since the Republic of Cyprus joined the EU back in 2004 the property buying process has become even simpler for EU based real estate investors.
This is a guide to the property buying process in Cyprus for non-Cypriot purchasers and it features details of the fees, taxes and costs associated with making an investment into property in Cyprus.
The Republic of Cyprus is an exciting country for property investors and one which already offers fantastic capital growth and rental yields and which is likely to see improvements in these two profit areas over the medium term as Cyprus aligns itself for adoption of the Euro in 2008.
Furthermore an investor has an exceptionally strong year round tourist market to focus on as well as a growing second home market and a well established retirement market offering the right amount and type of investment diversity in one country that an investor requires when building a successful portfolio.
In 2005 CYPRUS WAS NAMED ONE OF THE TOP FIVE PROPERTY INVESTMENT HOTSPOTS IN THE WORLD. The attractions of the third largest island in the Mediterranean Sea for both visitors and property investors alike are linked to the fact that Cyprus is blessed with a perfect climate that consists of year round fine weather ranging from temperate or cool but sunny in the winter to hot and sweltering in the summer.
On May the 1st 2004 the Republic of Cyprus became a full member of the European Union and it is poised on the brink of joining the European Exchange Rate Mechanism within the next two years. These facts have resulted in the property sector in Cyprus receiving an intensification of interest, however there’s a great deal more to excite property investors examining this European hotspot.
Please note: this guide to Cyprus for property investors focuses on the Greek Cypriot controlled Republic of Cyprus.
The economy of Cyprus is robust and prosperous; it is built mainly on tourism and the financial services sector - however construction also plays a strong role in maintaining the health of the economy. Cyprus has many natural and economic attractions that made the island one of the top five real estate investment hotspots for 2005 and also ensured growth in the property sector hit 20% again as it has annually for the past 5 years.
With mild winters that bring welcome rainfall to the island, Cyprus manages to remain green and lush throughout the winter, spring and early summer. This ensures the island remains beautiful, that its many rare species of orchid blossom and that its agricultural sector delivers fine produce in abundance. As the strength of the summer sun intensifies so the numbers of tourists to the island increases and from May to October the many daily cheap flights to and from Cyprus from the UK and mainland Europe bring in thousands of visitors.
These visitors are not just attracted to the long sandy beaches, fantastic tourist facilities and amenities, stunning Trodos Mountain Range, warm waters of the Med and the heat of the sun, they come to view the historical remains and ruins that Cyprus has in abundance.
The ancient island of Cyprus is the birth place of the goddess of love and beauty Aphrodite, and its history dates back to aceramic Neolithic times. Throughout its long history and because of the island’s strategic importance lying between Turkey, Syria, Egypt, Israel and Palestine it has been fought over and invaded and depending on whichever ruler was in power at the time it has either prospered or suffered at their hands. Because of its rich and diverse history, the island is literally covered with sites of intense historical interest and this is yet another natural reason for the island’s attraction.
In terms of the economic attractions of the island for property investors - the tourists demand rental apartment and villa accommodation for a minimum of six months of the year and the tourist market in Cyprus is fast growing meaning that annual demand is increasing. Furthermore, the island attracts many retirees particularly from the UK because pension income in Cyprus is only taxed at 5% - this makes for a strong demand for resale properties and also long term rental properties. Property prices have been increasing annually in Cyprus at a rate of around 20% for the past 5 years and yet base property prices in Cyprus are still far below those asked for similar properties in the other sunshine destination favourites such as Spain and Portugal.
For larger property investors interested in establishing a company through which to operate and trade, corporate tax in Cyprus is only 10% and there are other incentives offered by the Cypriot government to bring in foreign direct investment.
As a country the Republic of Cyprus is politically and economically stable. It is a first world country with fantastic infrastructure, superior education and healthcare facilities, the cost of living is affordable and the country is a free market economy.
Oh, and of course Cyprus is quite possibly one of the most naturally beautiful countries in the world and it has the perfect climate and up to 320 days sunshine a year! All in all it is a real estate investor’s paradise, a second property owner’s heaven and an expatriate’s dream home destination. |
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Real Estate Investors 
