Buy a ready business in Cyprus
Today, along with locals, foreign citizens can also buy commercial property in Cyprus for investment. The island is a popular resort region, and hotel, entertainment, and catering industries bring good profits here. Investors can acquire a ready-made business such as a cafe, a restaurant, a hotel, etc.
Hotels and residential developments with apartments in Cyprus are some of the most accessible and popular investment properties among investors. In the Greek part of the island, the average annual rental yield is 2–5%. An investor can work with a management company and receive a stable 4% per year.
Many people prefer to invest in the catering industry. Businesses, such as restaurants and cafes, in the island generate a yield of up to 10% per year.
Since the country’s business sector is rapidly developing today, many people prefer to invest in commercial spaces in business centres. The average return of such properties is about 6% per year.
Another option is to purchase a warehouse. This type of investment provides a yield of up to 4.5% per year.
Commercial property in Cyprus
If you want to purchase commercial real estate in Cyprus, the process is simple. The buyer reserves the selected property and makes a deposit, after which they sign an agreement with the seller, make payment, and register ownership. Additionally, you must pay transfer fee, stamp duty, and VAT.
When choosing commercial real estate, one of the key criteria is location. For tourist facilities, the return on investment will be higher if the building is near the sea. For warehouses and industrial premises, it is best to select a location near major transport routes. To make a sound investment, it is worth studying the calculations of professional investment analysts. It is important to consider current ROI figures and prospects of the undertaking of your choice.
Commercial property prices in Cyprus
The cost is strongly influenced by the following parameters:
- Return on investment: the higher the expected profit, the more expensive the commercial property.
- Completion level: a ready-made business costs more than an off-plan unit.
- Location: good location increases the price.
- Total area, quality of interior and exterior finishes.
For example, a 180 m² ready-made cafe in Larnaca is priced at €220,000. In the same city, a 93 m2 office can be purchased for €225,000. A 16-room hotel in Paphos will cost the buyer €3.5 million.
Commercial property investment in Cyprus
Cyprus is highly popular among investors for a number of reasons. Below are some of them.
- The corporate tax rate in the country is only 12.5%, which is lower than in most of Europe. For some IT companies that qualify for the preferential IP box regime, the rate can be reduced to 2.5%.
- Mortgage interest rates are affordable and range from 1.9% to 7.5%. Foreign nationals can also use a mortgage to make a purchase. Those holding a residence permit can take it out from any bank. Non-residents can only get a loan from a few banks.
- The number of construction land plots in the island is limited. As the region is a sought-after tourist destination, commercial real estate here has been gradually going up in price since 2013.
- In recent years, the island has been turning into a business hub with the headquarters of many large companies and start-ups, which has also attracted more people and investments to the area.
- Property in Cyprus has a quick payback period due to its high returns.
Buying commercial properties in Cyprus
The Cypriot market offers a wide array of commercial real estate. On our website, you will find various investment properties: offices, warehouses, shops, hotels, and villas in Cyprus. For your convenience, you can see listings’ prices in euros and dollars. We consistently update the catalogue so that you can keep up with new offerings on the market. Start selecting a high-yielding property for a future purchase now. With us, it is as convenient and easy as it gets.