El Dorado, the legendary cradle of wealth that once excited the imagination of adventurers from Europe – a myth no doubt, but has since been the emblem of golden opportunities for people with perception and audacity.
Lo the question then: is Cyprus today's El Dorado for real estate investors?
Let us consider some interesting facts.
2018 is the third consecutive year that Cyprus economy see a surge in its economy, marking an impressive 3.9% growth rate and setting the cornerstone of how sound an idea is to make a well-studied investment there this period.
Still, this could also be misleading if it wasn’t supported by numerous others figures, rates and reports that depict a well-founded and, most importantly, steady momentum regarding Cyprus’ financial state and prospects.
Namely, Cypriot economy’s growth rate surpassed the EU average for the year 2016, with the house prices rising in the first three months of 2017 by an impressive 4.1% and, consequently, taking along with them the construction section, which saw an unprecedented 9.7% rise – against an EU average of merely 1.1%! Indicative of the fact is the first five months of 2017, the number of issued building permits undergone a 36.2% increase, amounting to a total value of 108.6 million Euros.
These numbers are further corroborated by the Cyprus Land Registry, which has recently announced that Real Estate Sales saw an even more impressive growth of 20% in the first half of 2018 compared to the previous year, with a staggering total sales value of 1,7 billion Euros!
Permanent Residency & Citizenship Schemes
The residency schemes were surely one of the main factors that boosted the national economy and the real estate market all these years, enabling third country investors to get EU citizenship along with sought-after properties on the island. The rather favourable taxation system in Cyprus, with a corporate tax of 12.5% and a 50% tax exemption on investments in innovative and new companies.
The Impact of Banking System’s Revival
Cypriot banks and credit institutions have revived after the crisis of 2010, adding fresh capitals and augmenting their liquidity. As a result, property transfer fees dropped considerably, several exemptions started to apply capital gains tax, and new residences have now a smaller VAT, making Real Estate market, along with tourism, which has always been Cyprus’ greatest capital, the most vivacious financial sector on the island.
Appealing Business Environment
The rigorous protection of business initiative, the modernisation of public services, the consolidation of taxes, and the numerous double taxation treaties with around 40 different countries have already shaped a rather appealing business environment, friendly to investors, both local and foreign.
Other Favourable Factors
There are several other factors that have contributed and will obviously continue to do so to Cyprus’ highly favourable business environment. For example, its excellent geographic position, its prominence as a tourist destination, its cosmopolitan environment, excellent educational system, as well as the fact that is officially considered one of the five safest countries in the world.
Facts, not rumours, should always be the cobbles forming the path a serious investor takes; and all that mentioned above constitute concrete, fully verifiable facts. Cyprus is and will remain for years to come a truly excellent destination for real estate investors, especially those who seriously consider moving there permanently with their families.
If you have already made up your mind, you can actually find your next home by clicking here.Back to News