Investment projects in Cyprus
The Republic of Cyprus is very attractive for profitable investments. This is facilitated by a loyal tax policy, favorable interest rates and the state's interest in attracting foreign investors.
If you decide to invest in the island's economy, we suggest that you get acquainted with the most profitable investment projects with high profitability, which will allow you to consistently make a good profit.
Advantages of investing in real estate in Cyprus
When placed correctly, investments can generate high returns. For short-term rentals, the main base is the ever-growing tourist flow. Long-term rentals are attractive due to the growing number of international companies opening branches on the island.
What are the advantages of investing in real estate in Cyprus:
- Progressive reforms of the island government (attracting investment, residence permit program)
- Income tax is lower than in other EU countries – 12.5%
- Zero rate for most other taxes (property, investment, inheritance, etc.).)
- High standard of living and security, good education and healthcare systems (this increases the attractiveness of long-term rentals).
When choosing to invest in real estate in Cyprus, you need to be prepared for the associated difficulties. Sometimes it can be difficult to find a reliable tenant. Do not forget about the additional costs of maintaining proper technical condition.
Types of investments and their payback
All investors who choose to invest in real estate in Cyprus can be divided into 2 categories. Some people buy the most inexpensive properties that help maximize their profits. Others prefer expensive and luxury properties that provide a high level of prestige.
Especially high payback is typical for short-term rental of real estate. Budget housing is in high demand, which is due to the forced reduction in rental costs amid the pandemic. At the same time, luxury beachfront villas and penthouses remain desirable and in demand.
What types of real estate can you invest in:
- Individual houses, apartments and apartments
- Apartment building
- Residential complexes
- Pool of multiple apartments
- Land plots with a construction permit
- Current hotels
Profitability depends on a number of factors, primarily on the rental potential. This is a possible income from renting out real estate.
When you get acquainted with investment projects in our database, you can immediately compare them by the internal rate of return – the IRR indicator, which is indicated in the card of each ad.
IRR is a certain limit on the return on investment. The higher the value, the more attractive the object is for monetary investments, since it allows you to get more profit by attracting a loan of a smaller amount.
If his bid is less than the IRR, then you are guaranteed to secure a potential profit. Thus, taking into account the rate of return, you can choose the most profitable investment project.
In which regions to choose real estate for investment
To ensure that investments in real estate in Cyprus bring a good profit, when choosing a project, you should pay attention to the area of the island.
The highest growth in the cost of various objects is observed in large tourist centers, which include::
- Pathos. Due to its large number of historical sites, it is included in the UNESCO World Cultural and Natural Heritage List. They provide a constant flow of tourists who need housing for short-term rentals.
- Limassol. It offers a large number of expensive and prestigious properties. Choosing investment projects in this city, you can be sure of a stable and almost year-round rental yield.
- Larnaca. It is considered a relatively inexpensive place for a relaxing family holiday and a long stay on the island. Therefore, you can choose properties for short-term and long-term rentals here.
Investment process and features
For any investment in Cyprus, several conditions must be met: the age of the investor is at least 18 years, there are no criminal records and problems with the law, as well as violations of EU migration rules.
Capital invested in the Cypriot economy is also subject to verification. They must be obtained legally. Therefore, it is important for an investor to take a serious approach to the formation of a package of documents.
For example, when selling real estate, you can provide a contract of sale, and when receiving dividends – an extract on the decision to pay dividends and a tax return.
You can use borrowed funds to purchase real estate. The presence of an issued loan often speeds up verification, since it serves as proof of the legitimate origin of the money.
The transaction sequence is as follows:
- Choose an investment project from our database. We will help you choose, and you will save your time.
- We conclude a preliminary contract and reserve the object. At this stage, we will check all the documents for the property.
- We sign the main contract for real estate. You don't have to be present at the transaction.You can transfer the responsibility to our lawyer by issuing a power of attorney.
You can purchase several items at once. But keep in mind that this will affect stamp duty. When buying up to 170 thousand euros, it will be 0.15%. Anything higher will be taxed at a rate of 0.2%, but not more than 20 thousand euros.
Citizenship by investment in real estate in Cyprus
In 2020, the state program for obtaining citizenship of Cyprus for an investment of 2 million euros was canceled. The government plans to develop a new program, but so far there is no exact information about the resumption of the process.
Cyprus citizenship by investment was profitable, as property ownership gave investors confidence in the future. The most popular investment was in family housing.
After 5 years, they could be disposed of at their own discretion. The program also provided for the possibility of obtaining citizenship when buying commercial real estate.
The investment amount was supposed to be from 2 million euros.
Instead of the canceled passport program, there is a new one for obtaining a residence permit. In the case of real estate, this requires investment:
- At least 300 thousand euros per house or apartment
- At least 300 thousand euros in commercial real estate, such as offices, hotels, shops
To obtain a residence permit, an investor must confirm an annual income from abroad of at least 30 thousand euros. For each dependent family member, it is increased by 5 thousand euros, and for a dependent parent-by 8 thousand euros.
Why you should contact Dom Real Estate Agency
Do you want your investment in Cyprus to be 100% successful? Then contact the Dom Real Estate agency:
- We will advise you on the selection of an investment project
- We will select several offers that meet your criteria
- We will provide a full report on the selected object
- We will help you with the legal registration of the transaction and will support you throughout the entire process
In our database, you can get acquainted with objects from developers and owners with whom we have direct cooperation. This ensures that all information is accurate.
Ads are updated every 12 hours, so prices, descriptions and characteristics of each investment project are up-to-date at the time of review.
For advice and answers to any questions, please contact us in any way: by phone, in an online chat or by e-mail.