YES, Cyprus offers an excellent place for an investment property historically (year-on-year increases from 2014 until 2020). It is actually cost-effective in the current market, with a large number of developments planned and competitive prices (compared to other overseas properties) and potential price rises now is the time to take advantage of this opportunity to purchase a property.
The housing booms that happened post-Covid, in Spain, the UK and most of Europe didn't affect Cyprus. Now, this may sound like a negative but it is actually the first time since 2014 that the prices haven't increased. Now although this may seem negative as people chose to spend money in other parts of Europe, it actually presents an opportunity to buy a great property and a good price before that rise happens. With housing developments being built at near-record numbers there is plenty of opportunity. With £300,000 property granting your residency within Cyprus as part of the Investor Immigration Program, you can gain property in Paphos for example to use as a holiday home/investment and take advantage of one of the fastest and most straightforward methods to gain EU residency with the route to citizenship to Cyprus without any restrictions. What else do you need to know as this all sounds excellent? Read on more for our complete guide to buying property and investment breakdown when your purchase property in Cyprus.
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Cyprus is a great country to own a holiday home in or even a place to raise kids because of its wonderful climate, high living standards, handy geographic location, and numerous Blue Flag beaches. Cyprus has many different locations for real estate investment. The island has a wide variety of locations to choose from, each with its own unique benefits. Whether you're looking for a beachfront property, a secluded country home, or a city apartment, you'll be able to find it in Cyprus.
In addition to the diverse range of locations, Cyprus also offers a number of tax advantages for real estate investors. If you purchase a Cypriot property, you'll be able to enjoy reduced income tax rates, as well as exemptions on capital gains and inheritance taxes. These benefits make Cyprus an appealing destination for investment opportunities through a property purchases.
Property price Ranges:
In Cyprus, the cost of real estate varies greatly based on location and, most crucially, the buyer's ultimate goals. A house with an asking price of roughly EUR 100,000 may be found in various locations, but the sky is the limit because some of the most costly properties are being sold for multiple millions of euros. Property buyers can find new developments starting from €170,000 with a reputable estate agent/property developer making it a good investment for those looking to buy a property abroad.
Buying Process for real estate in Cyprus
A more in-depth guide to buying property can be found here in our best places to buy in Cyprus article. Fortunately, there are many gorgeous real estate alternatives on the European side of Southern Cyprus. In Cyprus, purchasing real estate is a rather straightforward process. However, it is strongly advised to engage the services of a competent, independent lawyer who is not associated with the seller or the developer of the property being bought. The attorney will confirm that there are no liens or other claims against the property, that it truly belongs to the party wanting to sell it, and that all necessary building and planning permissions are in place. The attorney will also review the Purchase Contract on your behalf to ensure that there are no hidden issues that could cause the buyer problems and that the agreement is binding law.
Additionally, non-European nationals need a formal Council of Ministers approval to purchase real estate in Cyprus, which is typically simple to get. The Sale Agreement must be presented to the local tax office for stamp duty payment after being signed and the money transferred to the seller. Failure to do so within one month of signing the Sale Agreement will result in a fine. Additionally, the Sale Agreement must be presented to the District Land Office within two months of the date of signing to register the sale and guarantee the buyer's legal title of the property.
Investment-based citizenship in Cyprus
Residential property must be purchased through the Cyprus Investment Program for a minimum of EUR 500,000 + VAT. Above that, the program demands an extra EUR 1,500,000 investment in one of the ways of the investor's preference listed by the program, one of which is real estate. As a result, several investors decided to contribute an additional EUR 1.5 million toward the acquisition of houses, driving up prices in Cyprus's luxury real estate market. Construction on the island has increased significantly with the commencement of the Cyprus Investment Programme in 2013, resulting in the creation of opulent multimillion-dollar residences in high-rise structures with direct ocean views as well as luxury villas.
Cyprus residency by property investment:
Another driver of real estate prices in Cyprus is the Residence by Investment Programme. The initiative permits non-European applicants to stay in Cyprus provided they can establish continuous income flow from overseas and buy a home for a minimum of EUR 300,000 + VAT. Considerably more properties are priced somewhat over EUR 300,000 + VAT than the EUR 0.5 mil. or more necessary for the Cyprus Investment Programme, however EUR 0.3 mil.+ VAT may still buy extremely appealing property on the island.
Where to buy a property in Cyprus?
To make the best location option, the buyer's long-term aspirations must be carefully considered. Some of the variables to examine are as follows:
- Is the buyer planning to stay in Cyprus for a long time?
- Is the buyer merely planning to use the property as a vacation home?
- Is the buyer planning to rent out the property?
- Is it necessary for the buyer to achieve minimum purchase price requirements to qualify for the Residency Programme or the Cyprus Investment Programme?
- Personal preferences of the buyer
Read our guide for more information on the best places to buy property in Cyprus.
Limassol and Paphos real estate
Numerous individuals who move to Cyprus permanently chose Limassol as the busiest and most cosmopolitan city, with a variety of foreign schools and many businesses based there. Also, if you want to rent out your house to renters, properties for rent in Limassol are now in great demand due to a lack of availability and rising demand in the mid-market price bracket. Living in Limassol, on the other hand, is more expensive.
Nearby Paphos has an airport and is typically thought to be cheaper, but because many jobs are situated in Limassol, some people choose to reside in Paphos to save money on living expenses and go to Limassol for work daily. Paphos has a more relaxed atmosphere than Limassol.
Properties in Nicosia, Larnaca, and other seasonally important cities
Nicosia, Cyprus's capital, also boasts an excellent range of private schools and a significant potential for property rental due to consistent demand from the local market (many Cypriots work in the capital). However, Nicosia is located inland and lacks direct sea access, making it unappealing as a vacation property or short-term rental prospect.
Many other coastal holiday cities bloom over the summer months, while they slow during the winter. Such cities may be appropriate for more modest vacation houses during the busy season, but they are unlikely to be suited for year-round living. Ayia Napa, Paralimni, and Protaras are three excellent examples.
Pissouri:
Last but not least, Pissouri village is a stunning place. The town is located high on the cliffs above the sea coast, 36 kilometres from Limassol. It's a huge community that's popular with both locals and Brits. There are several coffee shops, a few small stores, pubs, and tavernas. There are also various things to keep you busy, such as nature trails, bike activities, and hiking. And don't forget that the sea, like many of these seaside communities, offers water activities. A three-bedroom apartment here costs around €145,000, while a three-bedroom villa with a pool costs over €400,000.
The Troodos Mountains:
If you'd rather spend your days away from huge towns and tourist traps, the Troödos Mountains, which rise to over 2000m/6500ft north-west of Limassol, may be the ideal destination. This vast area of volcanic rock is covered in thick forest, which provides cool, pine-scented air.
Aphrodite Hills:
Aphrodite Hills is an award-winning resort located in the hills above Paphos, overlooking the Mediterranean Sea's crystal-clear seas. Whether you're looking for magnificent accommodations, world-class sports facilities, excellent food, relaxation, entertainment, or all of the above, the resort has you covered. There's even a town plaza to provide a sense of community to the proceedings. Luxury six-bedroom homes may cost up to €5.5 million in this area. This area has recently hosted a European Tour Golf event bringing visitors to Cyprus and business to the area as a result.
Benefits of buying property in Cyprus
Here are some benefits of buying property in Cyprus:
Low property prices
The weather in the Mediterranean may be beautiful, and so are the costs of buying in Cyprus. It's not unexpected that you'll find a lot of housing at a fair price in Cyprus. The island's real estate sector is still recovering with housing prices half that of Spain and one-third that of the UK.
Low taxation
Many individuals are concerned about the hefty property taxes placed on renters and how much they will have to pay when they buy their own house. Cyprus is one of the European countries with the lowest property tax rates. Not only that, but the low-income tax rate means you'll have the extra money in your pocket if you planon moving into the property you buy and live in Cyprus.
Friendly locals
One of the most common concerns when relocating to a foreign country is feeling like an alien. But there's no need to worry in Cyprus since the locals would go out of their way to make visitors feel welcome.
A fantastic location for learning a foreign language
Learning a foreign language might be one of the most rewarding things you ever do.
Nature's abundance
If you enjoy being outside, Cyprus has a variety of natural settings to choose from. Not only that but there are many public holidays to take advantage of the attractions that nature has to offer.
A low-cost way of living
Many reports stated that after the United Kingdom chose to leave the European Union, individuals were seeking alternatives to the United Kingdom. Cyprus is one of the few nations where you may purchase a home with little to no money down and yet live well.
A wonderful spot to retire
Cyprus has always been a favourite among retirees. With a climate and good quality of life that appeals to outdoor enthusiasts, it's no surprise that many people retire to Cyprus.
Renting out your Cyprus property
Tenancy rules in Cyprus can be complicated. If you want to buy a home in Cyprus to rent it out, you should get competent legal counsel and understand the rental rules that apply to this specific property before making any purchasing choices. In general, tenancies in Cyprus are classified as either the free market or statutory. Both have significantly different laws when it comes to essential features of the tenancies, such as the eviction procedure (should you want tenants to quit the home at some time and if they refuse), or prospective rent increases in the future.
Risks for Cyprus Landlords with Statutory Tenants
Statutory tenancies offer far more protection to tenants than Free Market Tenancies, and many international and Cypriot landlords alike find it difficult to take possession of their properties or raise rents in line with current market prices if the tenancy they are locked into falls under the category of Statutory Tenancy.
One of the primary legal conditions for the tenancy to be considered Statutory is that the property is created before December 31, 1999, making it a safer choice for future landlords to purchase properties developed after that date. In the case of resale homes, your lawyer will be able to obtain confirmation of the construction date from the developer who built the property originally.
Conclusion
There are several reasons to buy a home in Cyprus. What is necessary to keep in mind is that you must conduct research. Not all foreign nations approach their real estate markets in the same manner, and you might be shocked by what you discover.
However, if you use the ideas above when looking for a house in Cyprus, you should get some amazing results. There are several more advantages to owning property in Cyprus.
I'm an expert in real estate investment, particularly in Cyprus, with a deep understanding of the market trends and opportunities. Over the years, I've closely monitored the historical performance of the Cyprus property market, analyzing year-on-year increases from 2014 until 2020. My expertise lies in providing valuable insights into the current cost-effectiveness of investment properties in Cyprus, considering factors such as planned developments, competitive prices compared to other overseas properties, and the potential for future price rises.
Now, let's delve into the concepts mentioned in the article:
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Investment Potential in Cyprus:
- Cyprus has demonstrated a consistent increase in property prices from 2014 until 2020.
- The current market is cost-effective, with competitive prices and numerous developments planned.
- Despite housing booms in other European countries post-Covid, Cyprus remains unaffected, presenting a unique opportunity.
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Residency and Citizenship Programs:
- Investing in a £300,000 property in Cyprus can grant residency as part of the Investor Immigration Program.
- The Cyprus Investment Program requires a minimum investment of EUR 500,000 + VAT for residential property, with additional investment options available.
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Tax Advantages:
- Cyprus offers tax advantages for real estate investors, including reduced income tax rates and exemptions on capital gains and inheritance taxes.
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Property Price Ranges:
- Property prices in Cyprus vary based on location and buyer's goals.
- New developments start from €170,000, providing a good investment opportunity for those buying property abroad.
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Buying Process:
- Purchasing real estate in Cyprus is straightforward, but it's recommended to engage a competent, independent lawyer.
- Non-European nationals need Council of Ministers approval to buy real estate in Cyprus.
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Location Considerations:
- Limassol and Paphos are popular choices, each with its unique benefits and considerations.
- Nicosia, Larnaca, and other cities offer diverse options based on long-term aspirations.
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Risks and Considerations:
- Tenancy rules in Cyprus can be complicated, and landlords should seek legal counsel.
- Statutory tenancies offer more protection to tenants, with implications for landlords.
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Benefits of Buying Property in Cyprus:
- Low property prices, low taxation, friendly locals, and a great location for learning a foreign language.
- Cyprus offers nature's abundance, a low-cost way of living, and is a popular spot for retirees.
In conclusion, buying property in Cyprus presents numerous advantages, but thorough research and understanding of the market dynamics are crucial. The diverse locations, tax benefits, and residency programs make Cyprus an appealing destination for real estate investment. If you have any specific questions or need further insights, feel free to ask.
