Cyprus Economy Continues to Grow

June 5th, 2017   •   Citizenship, Cyprus, Economy, Property   •   Comments Off on Cyprus Economy Continues to Grow   

The most recent RICs property price index report shows more promising signs of economic growth in Cyprus. With improved confidence in Cyprus’ banking system, resulting in higher transactions taking place in the final quarter of 2016, the Cypriot economy is once again looking up. Last year, the economy saw an overall GDP growth of 2.9%, which was a great example of how successful the Golden visa programme is proving for the country. According to the Minister of Finance– approximately two thousand golden visa were issued to non-EU citizens last year, equating to around 4 billion euros worth of investment, which in turn makes up around 25% of Cyprus total GDP.

Compared to Q4 of 2015, rental values have also noticeably increased by 6.6% for apartments, 8.7% for houses, making the average rental yield between 3-4% p.a.

The countries Citizenship by Investment programme still holds it’s place as Europe’s quickest CBI programme. Following an investment of €2,000,000 + costs, it is possible to obtain an EU passport within just 6 months which in turn allows one to live, work or study anywhere in the EU.

Paphos luxury apartments DomusLa Vida have a wide selection of real estate investments to offer in Cyprus, including the following brand new project which has just recently been launched in the popular area of Pafos. Citizenship investors could consider purchasing a number of properties in this particular development to total the required amount of €2,000,000. With prices starting from just €240,000, this project also offers excellent choices for Permanent Residency applicants too. The developers are also offering a guaranteed rental programme of 3% p.a for a three year period. An ideal option for those who are looking for a low maintenance investment which will generate a steady ROI.

 

If you would like further details on either the citizenship by investment programme or the available real estate projects, please do not hesitate to contact us.

Cyprus Real Estate Shows Growth

February 7th, 2017   •   Cyprus, Investor Visa, Property, Real Estate   •   Comments Off on Cyprus Real Estate Shows Growth   

cyprus-real-estate-shows-growth According to the most recent RICS Property Price Index Report for Cyprus in 2016, there has been some promising signs of growth within the real estate market. Paphos was one of the strongest regions with an average price increase of 1.77% on residential houses. The prices of flats also rose steadily in Limassol at a rate of 1.4% on average; and there was an overall growth of 1.6% for holiday apartments throughout Cyprus.

Rental values have also increased across Cyprus by 0.7% for apartments and 3.3% for houses. The average ROI for rental property now stands between 3-4% per annum.

It seems that the economy and real estate market are finally stabilizing following the economic crisis back in 2013 and according to a recent report from KPMG this is primarily a result of the government’s Citizenship by Investment scheme. In the first two quarters of 2016, the total number of property deeds of sales increased by over 28% in comparison to 2015.  Tourism, financial services and real estate account for nearly 80% of Cyprus’s GDP, so a rise in the property market will have a great effect on lifting the overall economy.

Now that the market seems to have bottomed out in most area’s, there has never been a better time to buy in Cyprus with great potential for future capital appreciation. We foresee further price rises in 2017, making it an excellent time to buy.

Cyprus remains the fastest Citizenship by Investment programme in Europe offering investors a second passport within just 6 months following a real estate investment at €2m. Dependent children up to the age of 28 years old can be included under a family application and grandparents can also be included for just an additional €500,000. The real estate investment must be held for 3 years, after which investors only need to retain a residential investment of just €500,000 for the future.  As Cyprus is a full EU member a passport here will enable one to live, work and study in any EU country, currently still including the UK.

For more details on this scheme, please contact our specialist consultants today for further advice.

Cyprus Citizenship Meetings in London

January 19th, 2017   •   Cyprus, Meeting, Taxation   •   Comments Off on Cyprus Citizenship Meetings in London   

cyprus-citizenship-meetings-in-london

Venue: Conrad Hotel

Date: Week beginning February 27th 2017

Arrangement: By prior appointment only.

Cyprus is the most popular investment programme in the EU for obtaining European citizenship. It is the only programme that guarantees citizenship of the EU through pure investment in real estate.

The investment required is €2.0 million. In addition Cyprus has a separate residency programme. Permanent residency can be gained through investment of €300,000 into real estate.

Both programmes are popular with Middle Eastern, African and Asian investors. In particular the family options are generous allowing the inclusion of up to three generations (parents with children and grandparents).

Not everbody wishes to travel to Cyprus to discuss such matters so we will be holding individual meetings throughout the week of 27th February at the Conrad Hotel in London.

We will have our Cypriot lawyers available for one to one meetings plus our usual advice and guidance from our real estate consultants on a wide range of property options from apartments through to villas and commercial property that qualifies for the scheme. Our lawyers will be able to give advice and guidance of all aspects of residency in Cyprus including programme requirements and initial tax advice.

Meetings are strictly by appointment and as with many of our location timetables with the free unconditional advice on offer, times and availability get booked out quickly.

Contact Edwina Keyser in our UK office on +44 207 060 1475 or complete this form for further details or to schedule an appointment.

Investing for Residency and Citizenship in Cyprus

March 30th, 2016   •   Cyprus, Property, Real Estate   •   Comments Off on Investing for Residency and Citizenship in Cyprus   

Investors who invest in Cyprus real estate can gain residency or citizenship depending on the level of investment:

  1. Residency : €300,000
  2. Citizenship €2.0 million

A key factor for many investors in addition to the residency visa and passport is the return on investment (ROI).
There are two factors affecting a property’s ROI and its profitability:
• Rental income
• Capital appreciation

Rental Income

They are two types of rental.
Long term rental – is for a period of one year and more. This rental is used by Cypriots and foreigners permanently working in Cyprus. Proximity to the sea for this type of lease – is not necessary. There are disadvantages of such proximity – high humidity, the tourist noise.
Short-term rental – is for the period from several days to several weeks. It is for holidaymakers and an alternative to accommodation in hotels. Property for such rental should be located close to the sea and have swimming pool.

Yields on long-term leases are around 4% per annum. Short-term rental yields are slightly more – about 5.0%-5.5%. However, in case of short-term lease some renovation should be made from time to time.

Capital Appreciation

Capital appreciation on real estate is a factor that ultimately provides investors with greater profitability potential.
The prices in the Cyprus real estate market will grow in the medium and long-term perspective. Our optimism has solid foundation based on key economic factors. Briefly the drivers of market growth are:

1. The growth of the whole Cyprus economy. According to IMF forecasts, the Cyprus economy will grow in 2016 by 1.4%. The European Commission estimates the Cyprus GDP growth rate – 1.5% in this year and 2% in 2017.

2. Start of industrial extraction of natural gas in 2019. Large offshore gas deposits have recently been discovered in the Exclusive Economic Zone of Cyprus. The value amounts to 300%-3000% of GDP. Naturally, the gas production will boost the island’s economy. In addition, new industry will require relocating to Cyprus many foreign workers and that will push up property prices.

3. Construction of the first casino resort is set to increase the number of rich tourists up to 1.0 million a year. This will add to 2.6 million tourists currently visiting the island every year. The casino resort is planned to be the largest in Europe. The growth of tourism will increase demand for rental property and hence the price of that real estate.

4. Reduction of property taxes:
• Capital Gains Tax. Capital Gains Tax on property purchased during the period between July 16, 2015 and December 31, 2016 and sold anytime in future for a bigger price, will not be charged
• Transfer Fee. Transfer Fee for property subject to VAT payment is not charged. For a property that is VAT exempt and is purchased before 31 December 2016 Transfer Fee rate is reduced by 50%.
• VAT. When property is purchased, a reduced VAT rate amounting to 5% (subject to a number of simple conditions) will be charged instead of the current rate of 19%.

5. Non-domicile tax residents of Cyprus are exempt from paying taxes on dividends and interest on deposits, earned in Cyprus and around the world. This means that foreigners who have moved to Cyprus, do not pay taxes on the dividends earned somewhere else (the rule is valid for 17 years after the move). It is expected that many wealthy foreigners will take advantage of this opportunity. They will need premium class properties for living, rising demand and prices in this real estate segment.

Selecting Real Estate

The following are our recommendations and approach for finding properties for our clients with the greatest growth potential.
1. Property must be new, not resale. Real estate, which was built in Cyprus in large quantities, say, 10 years ago, was designed for the British – then the main buyers of Cyprus property. Unfortunately, their low requirements thoroughly spoiled that property. For a number of reasons (for example, due to the fact that houses/apartments were considered only as holidays homes), the British did not mind that properties had no heating systems and proper insulation, and the internal and external design was primitive. Currently, such Real estate is obsolete and is not in demand, despite of falling prices.

2. Property must have high specifications of construction and finishing. There must be high ceilings, efficient heating systems, expensive flooring, tiles, sanitary and kitchen ware. Real estate should look stylish and modern. Such property can be sold in future with good profit.

3. We recommend to buy in the premium segment of the market. Generally, the Cyprus property market is shifting towards more expensive housing. This is evidenced by the dynamics of sales. In recent years, sales of expensive property have been increased, while economy class property stagnates.

4. If an investor buys a property at the initial stage of construction, he/she can expect a good discount to the price. This provides a good capital appreciation.

5. Real estate on the first line to the beach in Limassol and other cities is characterized by permanently good demand. The demand is high while the supply is limited (only few plots of land on the first line in the cities are available). This pushes the prices on sea front properties up.

6. Properties in the tourist area of Limassol, located in walking distance to the sea, are very popular among foreign buyers. Their prices steadily grow. First of all, this applies to large 3 and 4 bedroom apartments.

7. There are several prestigious hills in the nearest suburbs of Limassol. Buying a luxury villa on one of these hills – is a good investment for an applicant for passport.

8. Properties on golf resorts have good prospects. Not any golf property, but having certain specific characteristics. For example, the panoramic unobstructed sea views. Such properties are often sold before their construction is even started.

9. The growth of the culture of the Cyprus construction industry, combined with the increased requirements of buyers have led to the emergence of properties with unique (for Cyprus) and advanced (for the world) architectural solutions. These properties will give a high profitability due to its fashionable image. And also due to the fact that the time of design, obtaining of all necessary permissions and construction of such properties is so long, that they will never be in excess.

Estimations of ROI (Return on Property Investment)

Let’s now estimate the possible figures of ROI, which can be received from the Cyprus property recommended above. The total profitability is a sum of Rental income and Capital appreciation.

• The average annual rate of long-term rent in Cyprus is 4%.
• Property market value will grow (according to conservative estimates) by 30% over the next 5 years, an average of 6% pa.

Together combined this gives an average return of 10% per annum.

Next Steps

Our assessment of the Cypriot property market is very positive over the coming years. However investors should be aware that in any market, property prices can vary, they can fall and they may not achieve the predicted forecasts.

Please contact us on 0044 207 060 1475 for a personal assessment with one of our Cyprus real estate consultants.

Cyprus Citizenship Program “Simple and Fast”

November 6th, 2015   •   Citizenship, Cyprus, Investor Visa   •   Comments Off on Cyprus Citizenship Program “Simple and Fast”   

The investment immigration program in Cyprus has proven to be the most popular route for High Net Worth investors seeking a second passport in Europe. Since inception the investment programme has boosted the
economy by over €2 billion, according to Minister of Interior, Socrates Hasikos.

The Cyprus program offers full EU citizenship and a second passport to an investor and his or her family (including dependents up to age 28) within just 90 days and with no residency requirement currently. Although pressure from the EU may change this in the coming year. The scheme has a very high approval rate and the process and requirements are very straightforward. Unlike certain other programs in Europe such as Malta, the funds are invested, not donated, and Cyprus offers an exit strategy after just 3 years.

Cyprus Commerce Minister, Giorgos Lakkotrypis recently commented on the efficiency of the Cyprus citizenship program. “The process” he says. “Very simple.” Applicants fill out a three page form, invest €2.5 million in a villa, and pay €7,000 in fees. Then, as long as they’re able to produce a Certificate of Clean Criminal Record, “within 90 days, they can get their European passport.” “Within 90 days,” he repeats. “Lately, we even achieve 70 days. It’s a very fast and easy process and has very high approval rate.”

Rumours of changes to the program have circulated in recent months and change is expected in 2016 under pressure from the European Union for Cyprus to ensure applicants have greater ties with the island and potential residency requirements prior to approval of a passport. Such changes would not apply in retrospect to those investors who had already gained their passports.

Cyprus Capital Gains Tax Boost for Investors

July 10th, 2015   •   Cyprus, Investor Visa, Property, Real Estate, Taxation   •   Comments Off on Cyprus Capital Gains Tax Boost for Investors   

Applicants for the golden visa programme in Cyprus who are investing in real estate have received a boost following changes to the Capital Gains Tax law in Cyprus. Those acquiring a property in Cyprus before 31 December 2016 will avoid any capital gains tax on sale of the real estate irrespective of the date of sale of the asset.

The change is part of a package of measure introduced by the Cypriot government and enacted into law on 9 July 2015. A key change is the exemption from taxation for personal investment income for non-domiciled individuals who will no longer be subject to the Cyprus Special Defence Contribution (SDC) of 17% on dividends and 30% on interest.

Together with existing income tax exemptions this means that non-domiciled individuals will pay zero tax in Cyprus irrespective of whether the income is earned in Cyprus or abroad. The measures have been introduced to encourage high net worth investors to invest and reside in Cyprus.

Cyprus Prepares to Join Schengen

April 30th, 2015   •   Cyprus, Investor Visa, Passport, Residency, Schengen Travel   •   Comments Off on Cyprus Prepares to Join Schengen   

Clients investing €300,000 for residency in Cyprus will soon benefit from being able to travel across the Schengen zone in Europe.

Cyprus has begun preparations to join Schengen which it hopes to achieve by August 2016. Before the island becomes a full member of the visa-free area there are a number of assessments that need to be completed including air boarders, visa control, police co-operation and personal data protection.

The Schengen Agreement has led to the creation of Europe’s borderless Schengen Area. Currently, 22 of the 28 EU member states participate in the Agreement. Of the six EU members that do not form part of the Schengen Area, four – Bulgaria, Croatia, Romania and Cyprus, are legally obliged and wish to join the area, while the other two – Ireland and the United Kingdom maintain opt-outs.

In addition, all four European Free Trade Association (EFTA) member states – Iceland, Liechtenstein, Norway, and Switzerland – have also signed the Schengen Agreement, even though they are outside the EU. One of the main benefits of being part of the agreement is that people can move freely across the boarders without the need for separate visas or passport checks. In the past, tourists entering the EU would have needed a separate visa for each country they wanted to visit. It was designed to promote trade and integration between different nationalities as well as encourage tourism from emerging markets such as China and India.

Those investing €2.5 million for citizenship and an EU second passport are not affected by such changes. A Cyprus  passport allows freedom to live, work and travel throughout all countries in the EU.

Pafilia

May 18th, 2012   •   Cyprus, Property   •   no comments   
Pafilia

These exquisite sea view apartments are ideally situated in the heart of Limassol, set on a fabulous plot within walking distance to the beautiful sandy beaches and town centre. Its contemporary architecture and luxury finishes are a unique feature and furniture packages can be included upon request.