Cyprus has long held many attractions for British retirees and holiday makers alike. The warm climate, beautiful beaches, countryside and sedate lifestyle, as well as great tax benefits for older folk, make it an ideal location.
However, the pace of life may well be changing with the latest announcement of exciting new plans for development towards the west coast of the island, in particular Pathos. In addition, a new international airport, a marina and a 1 billion dollar development are all planned for completion in 2008. The new development will cover a 250-acre site and will be known as Neapolis. A wide range of facilities are planned here, including a brand new hospital, a university, an international business centre, as well as a large leisure and cultural centre. What is more, the government has also launched a new golf policy which will increase the number of 18-hole golf courses on the island from 3 to 14. These factors, along with continued property development all over the island, indicate significant economic growth, which can only be good news to foreign investors.
Since its joining of the EU in 2004, Cyprus has enjoyed capital growth of 30-40% while property prices remain considerably lower (up to 30% lower) than in France or Spain. Former property purchase restrictions on foreigners were lifted and deposit levels have fallen to as low as 10-15% in some areas. Swiss franc mortgages are now available with rates of just 3.25%, making borrowing more affordable than ever.
There is no shortage of good value property in several areas, including Paphos and Limassol. A three-bedroom detached villa with a pool currently costs around €360,000 in a prime location. This amount would probably only stretch to a large two-bedroom apartment in the south of France.
Why Cyprus is a Good Choice
- The property market is one of the fastest growing in European Union. Prices are increasing by an annual average of 20%
- Property prices are still lower than in many other European countries
- Increase in the number of golf properties available. Golf property prices fetch up to 40% more.
- Comparatively low tax rate, including a Double Tax Treaty with the UK.
- Capital Gains Tax of only 20% and Corporation Tax for Cypriot limited companies (through which you can own your property) at only 10%
- UK pensions can be received tax free in Cyprus
- Foreign residents permanently residing in Cyprus pay only a 5% flat rate of income tax
- 340 days of sunshine a year make it a comfortable and enjoyable place to live
- High standard of living, with good facilities, including top class golf courses
- Low cost of living • Comparatively low crime rate and friendly people
- Excellent medical facilities, education and offshore business advantages
- Tourism is predicted to grow by 4.6% over the next 10 years, contributing some 13.9% to the country´s GDP by 2014
- British based legal system, where English speaking lawyers abound.
- British based banking system, making choosing mortgages and managing your money similar to “back home”
- Predicted entry to the Euro in 2007
- Very efficient land registry with straightforward and well administered procedures.
And finally, a word from the UK’s best selling overseas property magazine ‘ A Place in the Sun’ (September 2004 edition): "Cyprus is currently experiencing the beginning of a property boom as it becomes more and more popular with British buyers, after Spain and France."
Written by
Tina Andlaw
Tina is a regular contributor of articles for the Moroccan property experts Sunseekerhomes Homes. www.sunseekerhomes.com.