Buy-to-Let and Investment Property in Cyprus

Information on the possible financial benefits gained from buying development property in Cyprus...

Traditionally, Cyprus has been a sought after location for overseas buyers looking for a second (holiday) home or investment property.

The Cyprus property market has regained relatively stability after a downturn which was primarily caused by the global financial crisis. Cyprus property investment can provide good value and, in comparison to some other European countries can provide foreign investors a safe return on investment.

The market on the island is buoyed by the government's increased investment in infrastructure and the five new approved marinas and golf courses that are being developed.

Choosing an Investment Property

Cyprus property developers have a large inventory of sites and builds available in various locations. There are many apartments, villas and houses all over the island and both re-sale and new-build properties are available and can provide equally good value for investment.

  • If the intention is to use the property for holiday rental income then it's important that it be located close to the tourist centres
  • Work with a reputable real estate agency that has a working knowledge of the tourist industry and the towns that are most attractive for the owners of rental property
  • When investing in property to rent or lease it's also important to secure a reliable and reputable property management company or team that will provide all necessary services such as repair of damaged furniture and preparing the home between guest visits

Taxes

Cyprus property is liable to capital gains tax of 20 percent, while corporation tax is charged at 10 percent. The Cyprus taxation system has income tax for many retired people fixed at a very favourable flat rate of 5 percent.

Relations with the European Union

Cyprus has adopted the British-based banking and legal systems which simplifies the purchase process for those familiar with the British systems. Cyprus became a full member of the European Union (EU) in 2004 and adopted the euro as its currency in 2008. This further simplifies the purchase process for EU citizens without permanent residency status.

Information contributed by Phillip Menicou of Demari Developers, Paralimni Tel 23 744 100 / Fax 23 744 101 / e-mail / Website Copyright © 2010 All Rights Reserved