Cyprus has become a hot spot for property investment due to the improving economy and growing interest in Cyprus tourism. Cyprus is located in the Eastern Mediterranean. This tiny island country has beautiful beaches and quaint old world-style villages that offer travelers a romantic and relaxing escape from the busy world. There are few factors that make Cyprus property investment a promising opportunity and moreover, the time to do it is now.
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CYPRUS ECONOMY CONTINUES TO GROW
The Cyprus Real Estate market has bounced back from years of economic downturn. Things are now looking up. The economy and property market are stabilizing and improving.
Home sales increased by 46% in February 2018, and in March sales rose by 29%. In April, sales transactions saw a 29% increase. According to the Land Registry Office, in May, property sales increased by 23% compared to a year ago. Prices for apartments increased by 7.4%.
ADVANTAGES OF CITIZENSHIP BY INVESTMENT
Non-Cypriot investors are attracted to Cyprus for its citizenship by investment scheme. Once you earn dual citizenship in Cyprus, you can go to over 100 EU countries without a visa. This is just one of the many features that Cyprus investors enjoy.
The housing boom that’s occurred in Cyprus is partly driven by the country’s recovering economy. The economy grew by 2.8% in 2016. That was a big improvement from the year before annual growth of 1.7% (source: International Monetary Fund). The economy continues to improve to this day which is good news to real estate investors.
Cyprus’ housing market is divided into the urban centers of Limassol, Nicosia, Larnaca, Paphos, and Famagusta. Larnaca’s real estate market is driven primarily by local demand, however, many foreign investors are taking note of the area and demand is increasing.
CYPRUS REAL ESTATE MARKET OUTLOOK
The Cyprus real estate market is projected to continue improving due to economic growth and banking system improvements. Property prices are surprisingly inexpensive, and this is one of the main reasons that real estate investors flock to Cyprus as well as its stunning beauty and vacation-worthy seascapes. Property prices are around €1,300-1,800 per square meter. Even though rental returns are moderate, the low prices make up for this. An apartment with 120 square meters may cost around €700-800 per month to rent in Larnaca.
There’s good news on the tax front, too, for investors. The first 19,500 of earned annual income is tax-free. Pensions exceeding 3,450 euros are only taxed 5%.