Cyprus is the third largest island in the Mediterranean. It is one of the most suitable places for living, recreation and business. Every year thousands of tourists from all over the world come here to enjoy the excellent climate and take advantage of the excellent geographical position in the Mediterranean. And low taxes attract many members of the business elite who do business in Cyprus and invest in it. For this reason, real estate prices in Cyprus have always risen.
Investing in real estate in Cyprus offers many benefits. The editor has highlighted several economic aspects for you:
Cyprus is a member of the European Union
Cyprus is already a member of the European Union, the Commonwealth of Nations and a eurozone country, and will soon become a member of the Schengen Agreement.
Cyprus has huge energy reserves and its economy is growing rapidly.
Cyprus is often called "European Dubai" because it has huge energy reserves, just like Dubai. On December 13, 2019, Cyprus and an international consortium officially signed a contract for the construction of natural gas production and liquefaction infrastructure worth 290 million euros. It is said to be the largest energy project in the history of Cyprus and an important stage in the country's development. Thanks to oil, Dubai has transformed from a small fishing village into a world-famous metropolis in just a few decades. It is obvious that the availability of energy creates unlimited potential for the development of a country or city. Therefore, the prospects for economic development in Cyprus and investment in it are certainly very impressive.
Cyprus has an excellent business and investment environment with low tax rates
Cyprus is a member of the EU and levies corporate income tax at the rate of 12.5%. Cyprus is also one of the three countries with the lowest taxes among EU member states. Investors who invest in Cyprus can benefit from various tax benefits, such as the ability to manage international business due to foreign affiliates and the income tax exemption of international business partners. Dividend taxes are also not levied, and profits from permanent establishments abroad are fully exempt from income tax. In addition, Cyprus has signed double taxation agreements with more than 65 countries. There are also no time limits for the transfer of tax losses. Such losses may be covered under the Tax Exemption Compensation Act. Inheritance of shares of a foreign company in Cyprus is exempt from inheritance tax.
Cyprus' GDP and real estate sales in Cyprus continue to grow
GDP and real estate sales continue to grow. The number of real estate purchase agreements in Cyprus for the first 11 months of 2019 increased by 12% and reached 9456 compared to 8442 for the same period last year. According to the professional data platform Trading Economics, the economy of Cyprus grew by 3.4% on an annualized basis in the third quarter of 2019, continuing to grow for 19 consecutive quarters. Compared to the previous quarter, GDP in the third quarter of 2019 grew by 0.4%. According to the Cyprus Bureau of Statistics (CYSTAT), in the year ending the first quarter of 2019, the national residential real estate price index rose by 4.3%. This is the tenth quarter of consecutive growth and the largest annual growth rate since 2008. According to the official data of the Ministry of Land and Natural Resources of Cyprus, from May to July, monthly real estate sales in Cyprus reached the highest level since the global financial crisis, increasing year on year by 72%.