Learn Why Buying Real Estate in Cyprus is Such a Good Idea
In 2014, Knight Frank, the famed independent Real Estate Consultants, included Cyprus among the 5 best real estate investment destinations around the globe – in fact, Cyprus and Switzerland were the only European states ranking in this list.
So, it is undeniable: Cyprus is a premium field of action for real estate investors, but knowing the exact reasons behind this fact often proves much more convincing. Let us see the most important of them and better understand why buying real estate in Cyprus is considered such an excellent idea.
1. Great Short-Term & Long-Term Financial Prospects
Being the crossroad of Europe, Asia, and Africa, Cyprus has been, is and will be the focal point of most significant commercial transaction between the 3 continents. Besides, its rather advantageous taxation system and cutting-edge infrastructure and services have made Cyprus the ideal destination for an array of business expansions, including:
- banking services,
- Forex,
- Trading,
- Tourism,
- Marine and Shipping,
- Corporate Services,
- and, during the last 2 – 3 years Energy – indeed, recent discoveries of vast gas reserves in Cyprus’ exclusive economic has already attracted a high number of international investments and guarantees the island’s future economic prosperity.
Apparently, Cyprus boasts a rather promising short and long-term financial future, and that alone makes it an excellent choice for real estate investors from overseas.
Cyprus’ housing market has traditionally ranked amongst the most stable property markets in Europe, mainly because of its strategic location. Despite the recent financial crisis, factors such as the low cost and high standards of living have always attracted the interest of people seeking to move abroad (for their retirement or merely because they prefer warmer climates and Mediterranean landscapes) or invest in another country.
2. Favorable Exchange Rates
Being a full member of the Eurozone, Cyprus has Euro (€) as its official currency since 01/01/2008. While Euro has suffered some blows recently and depreciated compared to other currencies, but most currency experts expect it to regain most of its might during the next 3 years, a development that will enhance ROI, as well as act as a diversification tool for several high net worth investors seeking to diversify their property investments.
3. Taxation & Legal System
As already mentioned, Cyprus has developed a tremendously appealing taxation system, offering an array of benefits for entrepreneurs and international investors. Things are made even better with the Republic’s numerous double taxation treaties with more than 40 different states and its corporate tax of 12.5% - by far the lowest in Europe.
Furthermore, Cyprus’ legal system has developed out of the cradle of British law (a heritance afforded to Cypriots through their years as a British-controlled territory) and have been further enriched and improved by international and EU law standards.
These factors have combined and formed an extremely favorable and reputable business environment – ideal for foreign firms that seek expansion, as well as property holders that can provide these companies with the necessary space for their ventures and headquarters. In fact, several reputable companies have already moved their international headquarters on the island.
4. Ties with Europe – and with the European Union
Cyprus has strong ties with Europe – in fact, Cyprus is Europe’s most vibrant and beautiful eastern corner and much more “western” than many other European countries of the East. Its cosmopolitan air, cultured, tolerant and highly-educated people, superb legislation and a great democracy, bestow the island with this distinctive European soul that’s almost impossible to imitate.
In 2004, Cyprus joined the family of the European Union and 4 years later was fully accepted to the Eurozone, a development that eliminated several real estate restrictions and triggered an unprecedented financial boost, which undeniably suffered a blow in 2009 but didn’t prove enough to eliminate it – not even suspend it.
To Sum It Up
When Cyprus was listed among the 5 best real estate investment destinations around the globe a couple of years ago, it did not strike as a surprise to knowledgeable Real Estate experts. Cyprus has long been in their most – favorite – destinations list, and recent developments could only make things better for the island’s property market and financial prospects.