Why invest in Cyprus? If you are considering which country's real estate is profitable to invest in, you should consider the island. In this article, we will talk about the opportunities that await you on this beautiful Mediterranean island. Thanks to its unique combination of rich history, stunning scenery and favourable market conditions, real estate investing in Cyprus is becoming more popular every year.
Content:
- Why is Cyprus real estate a profitable investment?
- #1. Strong and stable market
- #2. Tax benefits
- #3. Wide range of properties
- #4. High quality of life
- #5. More affordable prices
- #6. Additional Income
- #7. Permanent residency for property purchase
- #8. Buying property with cryptocurrency
- #9. Growing economy
- #10. Tourist attractiveness
Why is Cyprus real estate a profitable investment?
Is it safe to invest in Cyprus real estate? Investing in Cyprus properties is an excellent way to diversify your portfolio and acquire a highly liquid asset. The island nation, with its strong economic foundation, attractive tax incentives and thriving market, offers numerous advantages for both experienced buyers and those just entering the market.
Let's look at 10 reasons to invest in Cyprus.
#1. Strong and stable market
The real estate market is expanding, making it a successful investment option. The problems that have affected European countries in recent years have bypassed the island. It's worth noting that there hasn't been a Spanish or British boom here, but investors have been able to benefit differently. Stable annual price growth from 2014 to 2020 confirmed that property in Cyprus has serious advantages in terms of high profitability and sustainable growth. This stability is further reinforced by the government's efforts to promote and support the construction sector, including the implementation of various initiatives and investment programs. Investing in Cyprus for foreigners is a decision that instils confidence in the capital growth potential.
#2. Tax benefits
One of the reasons to invest in Cyprus real estate is the presence of tax advantages. The country boasts a competitive tax system that allows property owners to generate high incomes. One notable advantage is the reduction of income tax rates for owners, allowing them to retain a significant portion of their rental income. In addition, the country has a low capital gains tax and a complete exemption from inheritance tax. These advantages also contribute to high profits. In addition, low property tax rates in the country ensure that you spend less on maintaining your villas in Cyprus. A favourable corporate tax rate of only 12.5% allows businessmen to feel more confident.
#3. Wide range of properties
The country offers a wide range of locations and housing options, making it an ideal place for investment. Apartments in Cyprus cater to a variety of preferences. Whether you are looking to live in a seaside home with stunning sea views, a secluded country cottage surrounded by nature, or a modern city apartment in a bustling area, the island has a suitable property.
In addition, each location on the island has its unique advantages, such as proximity to Blue Flag beaches, access to amenities, or the presence of international schools and businesses. This diversity allows you to find a property whether you are looking for a holiday home, a rental property or a permanent home.
#4. High quality of life
The island offers a high quality of life, making it an attractive place to invest. Thanks to the pleasant climate, you can enjoy a Mediterranean paradise with more than 300 sunny days per year. The island boasts numerous beaches where you can enjoy a relaxed coastal lifestyle and a variety of water sports. In addition, Cyprus offers a vibrant cultural life with festivals, art exhibitions and tours of historical sites. The island maintains a high level of services, including excellent medical facilities, modern infrastructure and a safe environment. The presence of international schools, universities, and a thriving business community adds to the convenience.
#5. More affordable prices
The average housing price in the country is EUR 2,054 per square metre, making it one of the most affordable in Europe. In comparison, the average price in France is EUR 13,462 per square metre, in Milan, Italy – EUR 5,271 per square metre, and in Portugal – EUR 4,800 per square metre.
The average prices per square meter of residential property in Cypriot cities are as follows:
- Limassol – EUR 2,420
- Paphos – EUR 1,950
- Nicosia – EUR 1,930
- Larnaca – EUR 1,435
#6. Additional Income
Is it profitable to invest in real estate in Cyprus? Let's look at the numbers. The return on investment here is one of the highest and most stable in Europe - up to 12% annually. Cypriot real estate prices increase by up to 4% annually. You can also earn more by renting out the property daily and by dealing with commercial properties. In most cases, the net rental income exceeds the mortgage payment.
#7. Permanent residency for property purchase
Foreigners who purchase property in the country for more than EUR 277,000 can obtain permanent residency through a simplified process. Document processing time is approximately three months. Along with the buyer, their family members can also obtain the permit.
After five years of permanent residence, the buyer can apply for Cypriot citizenship, which allows visa-free travel to non-Schengen European countries.
#8. Buying property with cryptocurrency
One way to invest in Cyprus is to pay with cryptocurrency. The use of digital assets (e.g. Bitcoin, Ethereum, USDT) for real estate transactions is gaining momentum, while adhering to regulatory requirements, including KYC and other relevant measures. This development allows for faster, safer and more economically efficient transactions, especially for international investors. By using cryptocurrency, buyers can bypass traditional banking systems and avoid currency conversion fees.
#9. Growing economy
According to IMF forecasts, the country is expected to end 2023 with a growth rate of 2.5%. Experts expect this figure to rise to 2.8% in 2024. The country's economy is expected to grow by 12.9% over the next five years, resulting in an average GDP growth rate of 2.6%.
Economic development is directly linked to increased demand for both owned and rented housing, which is a favourable factor for investors.
#10. Tourist attractiveness
The island is known for its friendly and hospitable atmosphere as well as its unique culture. Its tourist infrastructure is strong without sacrificing authenticity. Cypriots take pride in their country and are always welcoming to tourists interested in exploring the island. Whether you're looking for exciting hikes or just want to relax with a refreshing drink on the beach, you'll find either to be an inviting option in Cyprus.
But what is Cypriot culture? The island's traditions are incredibly interesting. The food and language are mainly Greek, the roads and infrastructure have a strong English influence, and in the cities, you can find remnants of Ottoman mosques everywhere. The island harmoniously blends different influences into a unique culture.
Think of the beaches you've seen on Pinterest from Greek or Italian islands. Now imagine them without the overwhelming number of tourists. That's what you'll find on the island. The locals have made the most of their location on the shores of the Mediterranean, so you can find beautiful, well-maintained beaches on every coastline. Cities like Paphos and Ayia Napa have plenty of resorts for a relaxing vacation. One of the most famous is the stunning Nissi Beach in Ayia Napa. It is a pleasure to explore! And if you're looking for a more secluded atmosphere, head to the south coast to see the Rock of Aphrodite.