Why Invest In Cyprus?
The reasons for investment in Cyprus are many and diverse. Alongside the points on capital growth and buy to let figures found further below in this article, there are several other factors that are combining together to make Cyprus a unique investment opportunity.
The double tax treaty with the United Kingdom assists in producing a comparatively low tax rate. Capital gains tax is capped at a flat rate of 20% and a corporation tax for Cypriot limited companies (through which you can own your own company) is charged at only 10%. UK pensions are received tax free in Cyprus, a great plus point.
A recent survey conducted by the local tourist board stated that well over half of Brits would strongly consider emigration. This is consistent with official figures stating that the number of people emigrating was up 30% over the ten years leading up to 2004. Cyprus, with its high standard of living, warm climate, affordable and efficient healthcare systems and incredibly low crime rate is proving an ever more attractive destination. The legal and banking systems are based on British systems, making choosing mortgages and the whole "moving in" process a comparatively straight forward one.
Here are some statistics to highlight the investment potential of Cyprus.
Capital Growth
* Since joining the EU in 2004, Cyprus has enjoyed a capital growth of 30-40%
* Cyprus is rapidly becoming one of the fastest growing property markets in Europe, with annual property prices increasing in the order of 15-20% per annum.
* Continued investment in infrastructure of the island, the growing popularity and accessibility of Cyprus, entry into the Euro in 2008 and the relatively low prices compared with the likes of other popular European destinations such as France and Portgual, support the expected continued growth in property prices for the foreseeable future.
Buy To Let Potential
* The climate of Cyprus and proximity to central Europe makes it an ideal holiday location all year round.
* Cyprus rental yields are not restricted seasonally, due to its beaches, lifestyle and beautiful scenery.
* It was reported that Cyprus was the second most popular holiday destination for the British in Easter 2006.
* In the Paphos area, 60% occupancy would typically result in a yield in the order of 9-10%.
Demand is outstripping the supply in Cyprus at the moment and with the population estimated to grow significantly beyond the current one million in the next 15 years, it seems that prices are set to soar and we could be approaching a "boom" period in the market. The financial economy in Cyprus is extremely strong and it is expected to join the Euro as early as January 2008, and as such has to meet very stringent financial targets, all good signs for the investor. These include the reduction of interest rates to fall in line with the European Central Base Rate, this can only serve to strengthen the rising property prices. Cyprus, is at present on track to meet all financial targets. History suggests, and Independent financial projections forecast, a subsequent boom in the property market, making now an ideal time to purchase in the short, medium and long term.
Further developments in the Republic of Cyprus are contributing to the investment potential. Large scale redvelopments and expansions of the two major airports on the island (Larnaca is expected to soon have the capacity for 9 million visitors a year) will produce an inevitable increase in the number of flights to the island and therefore a decrease in flight prices, this all contributes to an expected tourism boom of around 4.6% over the next five to ten years.
New highways are in the advanced stages of planning to complement the islands already ample infrastructure, opening up new locations to develop and providing sound investment opportunities. A wide range of facilities are planned, such as several new golf courses (properties near golf courses can fetch up to 40% more when the course is completed), a series of redesigned and extended marinas, new hospitals and a wide range of cultural and social attractions.
Cyprus really is a wonderful island for investment, come and see this for yourself. Request one of our brochures now.......click here