Why Invest In Cyprus?
- Cyprus became a full member of the EU on the 1st May 2004. Membership afforded the country many advantages, including increased EU financial assistance and access to a significant single market.
- It is expected that the EU will invite Cyprus to adopt
the Euro as its national currency on the 1st January 2008.
In preparation the government has reduced budget deficit to less
than 3% and interest rates will undergo reductions
in order to create parity with ECB rates in advance of euro entry.
- Following EU membership in 2004, it is widely expected that
the law restricting foreign ownership of property to just
one per person will be lifted by 2009, generating considerable
overseas demand.
- The economy has performed extremely well in recent years with
very favourable growth rates. Economic growth for 2007
is predicted to be in the region of 3.8-4%, well above
the EU average.
- Property prices have grown between 15-20% in recent
years. Growth rates, which are one of the fastest growing
in Europe, have been fuelled by a global demand, which continues
to be very strong. Similar growth rates are expected in the coming
years.
- Despite high demand rates, property prices in Cyprus
remain among the most favourable in the EU, particularly
in the North of the country. This ensures a significant return
on investment.
- Cyprus is currently one of the most tax efficient countries
in the world. Double taxation agreements with over 40
countries are in place in addition to bilateral investment agreements
with 16 countries. Taxes are calculated according to the value
of the property and are approximately 3% while VAT is 5%.
- In 2006 tourist numbers reached almost 2,700,000. The government
has developed a Strategic Plan for tourism, which involves significant
investment into the product and services. It is expected
that tourism will grow by 4.6% over the next 10 years, contributing
13.9% to the country's GDP by 2014.
- 90% of the population speak excellent English. In addition the
banking, legal and land registry systems are based on
the English systems and therefore provide clarity, ease
of communication and security to any investor. A very efficient
land registry with straightforward and well-administered procedures
makes property purchase a safe option.
- A wide variety of competitive mortgage and loan products
are readily available on the market. Mortgages currently
offer favourable rates in the most competitive currencies.
- Cyprus has the lowest crime rate in Europe.
The safe environment is highly appealing to many tourists, hence
the substantial number of return visitors and the large population
of overseas residents.
- Cyprus is very accessible with a variety of low cost
airline flights available throughout the year. An average
of 340 days of sunshine a year guarantees demand for year round
tourism
- Cyprus is a solid, low risk investment. Return
on investment is high, demand for property growing, the economy
stable and buy-to-let conditions favourable. The climate and lifestyle
appeal to many European and US visitors who return year on year.
With capital growth currently reaching 20%, there has never been
a better time to invest in Cyprus.
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The information contained in these pages is, to the best of our knowledge, true and accurate at the time of publication. It is intended solely for information purposes and as such Hegarty Properties accepts no liability for any loss or damage howsoever arising as a result of use of or reliance upon this information, whether authorised or not.
