Anastasia Yianni of Cyprus Sotheby’s International Realty writes:
For overseas property investors looking for an investment in 2024, Cyprus continues to stand out as an exceptionally attractive destination.
More than just a sun-soaked tourist hotspot, Cyprus offers fantastic lifestyle opportunities, a permanent residency programme, promising investment potential, and an attractive tax regime.
We have seen that Cyprus ranks among the top destinations for FDI, thanks to its rapid economic development and advantageous business environment. Its attractive lifestyle offer is backed by an excellent healthcare system and well-established education sector, as well as highly competitive residential property prices.
Additionally, Cyprus offers overseas buyers a fast-track procedure for obtaining a permanent residency permit, granting permanent residency status for life to all family members, including dependent children up to the age of 25 – provided all relevant conditions are met. Other advantages include the relatively short application time, the possibility to do business in Europe while living in Cyprus, and the lower investment threshold compared with other EU countries.
Cyprus also boasts one of the lowest corporate tax rates in Europe (12.5 per cent), coupled with an extensive network of Double Tax Treaties (circa 67 countries), and a geographical position that provides access to markets in Europe, the Middle East and The Maghreb.
Cyprus is committed to transparency when it comes to property purchases, taxation, and acquisition of visas and citizenship. Every sales contract is registered in the Land Registry, along with analytical tools made available to buyers. In addition, property and investment laws in Cyprus are constantly evolving to better accommodate foreign buyers, aided by the fact that regulations are clear and concise.
The most sought-after regions in Cyprus among foreign investors have consistently been Pafos, Limassol, Larnaca, and Famagusta, particularly given that they are all coastal cities, and foreign investors tend to favour properties in seafront areas. Among these, apartments stand out as the property type that tend to generate the highest rental yields and return on investment. Moreover, when it comes to property construction and urban planning, Cyprus is increasing its efforts to offer sustainable living by introducing more green sources of energy, better insulation and quality, and more eco-friendly materials.
When considering investment in Cyprus real estate, overseas buyers should prioritise factors such as legal permits, quality of construction, and the reliability and financial standing of the developer. I strongly recommend that buyers engage with a licensed agent, who will undertake the necessary due diligence on properties.
Given the Cyprus government’s commitment to fostering foreign investment, I anticipate continued sustained growth from foreign investors in Cyprus property over the next five-ten years. Compared to other emerging property investment destinations in Europe and the Mediterranean, Cyprus is experiencing a faster rate of development, evolving rapidly into a robust educational, medical, financial and business centre in the Mediterranean region.
Anastasia Yianni is chief executive officer of Cyprus Sotheby’s International Realty.
