For the last couple of years, Cyprus has become an incredibly attractive place for life, business, and international investments. The country has all financial benefits – it is a member of EU, British Commonwealth, WTO and World Bank. Additionally, it has got extremely favorable taxation conditions which are the final argument for investment actions.
Fortunately, the economic crisis for Cyprus is far behind. According to the data of 2016 the GDP was 2.8% and in 2017 it leaped over 3%. The country is facing a serious growth in the field of real estate trading. During the period of 2014 and 2017, the number of successful operations in Limassol grew by 179% and by 190% in Pathos. The two cities are the most important centers of dwelling and real estate business due to geographical location and a wide spectrum of offerings for the wallets of all sizes.
Pathos is the most elite resort on the island. This is an attractive city for rich people who want to buy a place for the families. This is the area with a top level service in all spheres of social life. This is a peaceful territory with numerous quiet harbors and beaches. It is also possible to find first-class restaurants and lots of sights.
Limassol is a total mirror reflection of Pathos. It carries a proud title of the most cosmopolitan city of Cyprus. The place is bursting with entertainment all year round and it is visited by people who are searching for having some fun. A well-developed infrastructure offers a wide selection of options to enjoy for people of all ages. It is not only a marine resort but also an economic and cultural center of the country.
The Peculiarities of Investments in Cyprus
The investment attractiveness of the resort cities is stimulated by Cyprus taxation policy that influences the whole island. The most outstanding financial feature is the possibility to acquire economic citizenship in case of investment of over 2 million euros and permanent residence right for people who invested over 300 thousand euros.
The real estates of Cyprus are characterized not by high income but by a great reliability. It is possible to invest in commercial and living real estate with an average yearly income of 5-7.5% and 5-8%. The leasing brings 3-5% of yearly income. Due to the well-developed sector of tourism, it is more advisable to invest in living premises as they will be more requested by potential customers.
Limassol is mostly dominated by the apartments of lux level and commercial real estates while Pathos is advisable for those who are searching for bungalows, villas, and townhouses. Additionally, the average rate for a square meter in Limassol is 6 thousand euros per square meter, while in Pathos it is 60% lower. Such a difference in price is caused by a great level of demand for buying area for hotel building.
Starting with January of 2017 the immovable taxation was canceled. It is paid by municipality according to the rates that were established in 1980. The buyers are free from property transfer fees taxation and there is 50% discount for transfer of ownership rights. Additional value taxation is often implied at a discount of 5% from general object’s value. That is why Cyprus is growing so popular and it will develop further on.