Big opportunities for investors in the Real Estate Industry of Cyprus (Copy)
Over the last two decades, the little island in the Mediterranean grew inordinately in practically every sector, from tourism, and entertainment to business, education and real estate. Cyprus’ investment potential has increased rampantly with no plans of slowing down.
Why do investors choose Cyprus?
Quality of life.
While there are many countries with warm weather and delicious, fresh seafood, investors who relocated their families to Cyprus enjoy one common aspect on the island: the quality of life that the island offers. However, the 300 days of sunshine throughout the year and the island's strong propensity to culture and art are not the only aspects that make Cyprus an extremely desirable place to reside.
In comparison to other European countries, Cyprus has a substantially low cost of living yet at the same time, the island was ranked 27th at the Economist Intelligence Unit's 2019 Quality of Life indicator. When compared to countries with similar population size, like Slovenia, Cyprus has reduced crime rates, and frequently ranks “Top 5 - Safest Nations Globally”.
2. Business Environment.
Cyprus is strategically located between three continents - Europe, Africa, and Asia. This has established the island as a key international business hub of the Eastern Mediterranean and a major trading point. The island has been an important transshipment center when transporting goods into the European Union. This has led multiple major shipping companies, to establish their offices on the island such as Columbia Shipmanagement, MSC Shipment and Interorient.
In addition to the island’s convenient location, it has one of the lowest tax rates within the European Union Countries. Cyprus has an attractive yet transparent tax structure that complies with EU and international laws and has double taxation treaties with over 50 countries worldwide.
Cyprus tax resident companies are taxed at a flat rate of 12.5%. In addition to this, disposals of securities and foreign-sourced dividends are exempt from tax. Capital gains made on the sale of shares are generally not taxed in Cyprus and there is no on the transfer of assets between spouses and family members up to the third degree. There is also no inheritance or succession tax – assets will be passed to heirs without having to pay any local tax.
These attractive features have helped develop and improve the island’s business infrastructure immensely. Cyprus is the home of multiple international business such as the large games developer Wargaming, telecom services company Amdocs, and large forex companies like FXTM, eToro, BD Swiss, EuropeFX and XM. Emerald Group offers bespoke corporate solutions for different business and ventures in Cyprus.
3. Tourism & Leisure.
Before the little island became a popular base for international businesses, it was an ultimate tourist destination. With so much to offer on a small piece of land – the island is only 240 km long – Cyprus is a popular destination for different travelers across the globe. The sea, sun and sand come to mind first, since the island boasts over 600 km of beautiful coastline. The island is blessed with idyllic beaches on every corner where travelers can lounge, swim or engage in watersports like kiting, wind surfing, sailing and more.
In the recent years, Cyprus became renowned for agrotourism too. Just an hour drive from any major city leads you to rich forests filled with natural trails, camping sites (or better yet, glamping sites) and local taverns. But for those who prefer a more luxurious getaway, there are numerous boutique hotels nested in the mountains, such as the spa hotel Casale Panayiotis and Ayii Anargyri.
Another significant hospitality project in Cyprus, has been the casino resort (ICR) which is bound to open in 2021. The casino will be Europe’s biggest casino and will facilitate a range of attractive and activities. The budget of the project is set to exceed €600 million and will contain a Las Vegas-style entertainment center. The project will contribute about €700 million per annum to the economy of the island and will account for 4% of it’s annual GDP.
But why Real Estate?
In 2015, property sales in Cyprus jumped by over 10% due to the Cyprus Citizenship by Investment Program . The next few subsequent years were revolutionary for the island’s real estate market. From standard apartment buildings and moderately designed homes, the island quickly caught up with modern real estate trends. Some critical projects include the Trilogy and One which is bound to be the biggest skyscraper on the island upon completion and many more.
RESIDENTIAL REAL ESTATE
However, the multi-million projects are not the only new developments on the island. Multiple developers opted to transform the housing market by creating more affordable housing that could either be used as personal home or as an investment. Affordable real estate in prime locations is great for those seeking to lease their properties out on long or short-term basis. A difficulty that many foreign buyers have come across when looking for real estate in Cyprus, is finding a reliable enough real estate agent. Emerald Group can offer advice and support to clients looking for properties. Thorough due diligence when selecting and purchasing a property is very important.
Rental prices have grown in Cyprus, and many foreigners have turned to investing in both residential and commercial properties. The new developments are not the only available option for investors. The market is filled with high-quality, 10-year old properties that are priced well and in great condition.
For example, Emerald Group’s exclusive hotel investment opportunity in Larnaca which is a 5-floor building with a total building surface of 895 m² that comprises ten 2-bedroom apartments . The property is offered as a fully operational business model, that would act as an all-year hotel apartment property with an average occupancy rate of 70%.
COMMERCIAL REAL ESTATE
Since many companies have moved their businesses to the island, the demand for luxury, well-located office space has increased too.
Along Limassol’s coastline, multiple new buildings have popped up such the famous Oval, Vashiotis Seafront, and Cedar Oasis. In Nicosia, Cyfield 360 became the city’s tallest landmark at 34 floors.
Final thoughts
We have listed the numerous advantages the island offers, and biased as we may be, they are all true. Cyprus is the top destination for those seeking a comfortable, beautiful life in a cosmopolitan island.
Real Estate purchase, sales and investment are the key areas of specialization of Emerald Group. Our company has a spherical view of the Real Estate industry on the island and we have handled numerous acquisitions and sales for over 20 years, from private home purchase to multi-million investment projects.
Our team of experts are available for a no-commitment first meeting or virtual call to discuss your Real Estate needs in Cyprus and offer you tailor made solutions in order to legally secure your acquisition and the best ROI on your personal or professional investment.
A special thank you to Daniel Abdalla for allowing us to use some of his beautiful photography. Give him a follow on instagram -> @dans_eyeinthesky