Why Buy in Cyprus?

Investment Property in Cyprus

The beautiful island of Cyprus offers exceptional opportunities for international property investment. Boasting a consistently growing economy, banking and legal systems based on those in the UK, as well as low property prices, the island is a prime property location if you're looking for a real investment in the sun.

Geography and Climate

Cyprus is the third largest island in the Mediterranean Sea, boasting up to 340 sunny days per year and offering one of the longest tourist seasons in Europe. The island has nearly 500 hundred miles of coastline, with sandy beaches, rugged outcrops and outstanding olive and citrus groves. Geographically, the island is located at the crossroads of three continents and, historically, forms one of the trading paths of the first merchants of antiquity.

Cyprus is currently rated as the number one destination for British retirees and remains one of the most popular holiday destinations for UK tourists. With significant redevelopment already underway, the island offers property purchasers the opportunity of an inexpensive, relaxed lifestyle with plenty of investment potential.

General Living

Access to and from Cyprus couldn’t be easier, with two international airports in Larnaca and Paphos and a wide network of air routes connecting the island with Europe, the USA, Asia and Africa. Airlines currently serving Cyprus include: British Airways, Cyprus Airways, Excel Airways, My Travel Airways, Flyglobespan, Thomas Cook Airlines, Thomsonfly.com, KLM, Monarch Airlines and Easyjet from 2008

Once on the island, excellent road networks ensure that all resorts are easily accessible and traveling around remains easy and stress free. In addition, telecommunication services rank amongst the most efficient in the world and postal services are reliable and fast.

Language barriers will not prove a problem either as English is used significantly throughout the island. Crime rates are also significantly lower than those found in the UK and medical care is offered at an advanced level.

And if all these factors weren’t tempting enough, relocating from the UK has never been easier since Cyprus joined the EU on 1st May 2004. As a result, Cyprus has a growing British ex-pat community, seeking sun and solace on the island, with a cheaper and more relaxed way of life.

Government and Economy

Around 3 million visitors come to the island annually, 65% from the EU and the Government's successful encouragement of the offshore sector, has led to the development of a European-standard in both the commercial and financial infrastructure. International links are, also, particularly strong in the shipping and banking sectors.
Economy and taxation

Cyprus provides a fairly high European level standard of living, with low unemployment and inflation rates. The overall cost of living averages about one to two thirds of that experienced in most parts of Europe (including the UK), as well as Japan and the USA. A recent survey identified that most towns on the island have a lower cost of living compared with those found in the developed nations and in Cyprus, the low living costs are obviously an added incentive for the potential property investor, offering a full, but inexpensive way of life.

The Greek Cypriot economy is stable, with a high proportion of GNP (around 40%) based on tourism. In terms of currency, the Cypriot pound is divided into 100 cents and is managed by the Central Bank using the Exchange Control Law Cap 199 (although, on the whole, legal and banking systems are based on UK law). Generally, banks on the island target stability against the Euro and offer the second lowest inflation rate in the EU, after Malta.

For property investors, it is important to recognise that the capital value of property is currently increasing at around 15 - 25% per annum, and Inheritance Tax, unlike the UK, has been abolished. As if it couldn’t get any better, Cyprus also boasts 5% taxation on pensions compared to 14% in the UK. Cyprus investment policy is also completely liberal, allowing 100% foreign participation in most sectors of the economy.
Infrastructure

Infrastructural regeneration of the island began in early 2003 with the development of three main roads to and from Larnaca, with both social and economic benefits expected as a result.

Development In Cyprus

Development in Cyprus is already well and truly underway and infrastructure will, undoubtedly, continue to expand, largely, due to rising incomes, low interest rates and a significant increase in spending in this area.

Developers on the island are also currently working towards the Strategic Plan for Tourism 2010 which aims to upgrade facilities and resorts in line with changes in tourism trends. For investors, the plan demonstrates a long-term effort to bring Cyprus into the 21st century, focusing on increasing the amount of tourist arrivals as well as per capita tourist expenditure, length of stay and repeated visits. The Strategic Plan will also focus on the development of tourist attractions including theme parks, agro/nature tourism, marinas and golf courses, designed to cater for the diverse interests of today’s tourists. Implementation of the plan can already be seen with two major golf courses currently under construction in the south east of the island.

Long term, the aim is to continue urban development throughout Southern Cyprus, including improved roads and highway construction, regeneration of port and airport facilities and improvement of storm water pipe, wastewater and sewer systems.

More generally, Cyprus has an excellent communication and telecommunication infrastructure, undoubtedly contributing to the progressive development of the island. This, coupled with widespread use of the English language and a legal system largely based on English law, makes the island a very convenient and effective business base and investment opportunity.