Investing in Real Estate in Cyprus

Cyprus real estate investment is particularly profitable due to the island’s landscape, location, thriving industries, and tax incentives. If you are searching for business or residential properties, investing in real estate in Cyprus is definitely worth considering. The island provides multiple benefits for investors, including a geostrategic position and a favorable tax regime. Every district on the island has something to offer investors.

Assessing the market outlook allows real estate investors to acquire a sense of the area before investing into it. Cyprus’s economic strength stems from its thriving tourist and information technology sectors, and the island has surfaced on the European real estate landscape like never before in recent years. Because of the numerous infrastructure and property development projects that have revitalized the country’s economy and real estate market, the country has seen extraordinary and constant growth.

According to experts, the Cypriot real estate market would rise by a stunning 3.5% each year until 2023. This expansion has been fueled by a combination of factors, including an inflow of visitors and expats wishing to migrate, as well as an increase in the number of new development projects. Cyprus is focusing on luxury developments, which have piqued the interest of European and Israeli developers as well as expats seeking tax-free riches throughout the world, but also offers a great potential for investments in lower budget apartment and housing developments, as local residents are rather buying than renting.

Cyprus Real Estate Investment: Residential Property

Market predictions in recent years have showed constant increase in the Cypriot housing markets. Home prices and sales were continuously growing, and the introduction of new housing projects, particularly high-rise constructions, has supported market growth even more. The housing market in Cyprus has benefited immensely from an inflow of visitors and expats looking to migrate and buy property.

Because Cyprus has a flourishing tourism economy, renting luxury homes or flats to visitors is rather simple.
The government has launched a number of programs to revitalize and enhance the real estate sector, and these efforts have paid off handsomely. New residential, commercial, and corporate developments, as well as sophisticated infrastructure advancements, have set the way for a stable and thriving ecology.

Cyprus Real Estate Investment: Commercial Property

Cyprus real estate investment includes not only residential property but also commercial properties and investments. Many individuals believe that commercial and tourism property investments are riskier than residential property investments. Cyprus, on the other hand, offers some attractive prospects. If you have an eye for recognizing up-and-coming districts or know where there is a big demand for hotels or other touristic assets, or apartment buildings, investing in commercial and/or touristic property is great for you.

By investing in the Cypriot real estate market, you will not only enjoy the climate and the relaxing surroundings, but you will also enjoy the island’s other perks. Among these advantages are tax benefits. One of the most tempting qualities that creates Cyprus investment potential is the low corporate tax rate. The company tax rate is 12.5 percent, one of the lowest in the European Union, and fully conforms to EU and OECD regulations. The benefits extend beyond the low tax rate. Dividend revenue from the sale of shares, bonds, and other financial instruments, as well as dividends from foreign exchange (FX) and revenues from Overseas Permanent Establishments (PEs), will be tax-free.

Member of the EU

Cyprus is a member of the European Union that utilizes the Euro as its currency. The island enjoys access to the European Union’s single market and customs union.
Cyprus is particularly appealing to High-Net-Worth persons because it offers a perfect mix of lifestyle, a healthy business climate, and a lavish lifestyle. Real estate investment in Cyprus has been extremely advantageous and is continuing to rise across the country.

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Further information about Cyprus Real Estate can be found online i.e. here (Source: PWC)