Cyprus property deals hit an all-time high
The Home Move website has stated that Cyprus’s appeal as an investment market is spreading across the world and it has attractive financial propositions. Cyprus property deals till September, 2007 surged by a stunning 42% and that amounts to CYP 1.7 bln or EUR 2.9 bln from CYP 1.19 bln in September, 2006. Due to the imposition of capital tax on property gains, Cyprus government is racking in huge gains from capital gains taxes. The income has catapulted to155% to CYP 200 mln till Sep, 2007 compared to CYP 79 mln in the same period in 2006 and CYP 38 mln in 2005.
Real estate experts explained that the flurry of activity in property deals is mostly due to the impending imposition of VAT on land sales and easy credit by banks. Cyprus economic statistics are impressive for potential overseas investors. The interest rate of Central Bank of Cyprus stands at 4.5 per cent. The tolerant Cyprus Investment Policy permits complete foreign participation in all sectors of the economy. The laws in acquisition and development of land are same for both EU nationals and non-EU investors.
There are no exchange control restrictions and overseas investors don’t have to prove that property was purchased from external funds.
Cyprus enjoys a trendy life style and is ranked highly among other European economies for its lower cost of living and lesser taxation, especially for retirees with the further benefits of no inheritance tax. Home Move praised Cyprus for offering a strong and growing economy, which has led to capital growth in its housing market.
Recently Cyprus Mail has reported that the reason for Cyprus’ popularity among overseas investors is that it offers best quality properties, regardless of the fact that buyers have the benefit of prices which are lower than many other popular European destinations.
Popularity: 55% [?]
