Cyprus is a tax haven

Read the article entitled Entering the Cypriot Property Market to find out just how easily and cheaply you can invest there. Plus, the British based banking and legal systems make the process extremely comfortable and transparent. There is no Inheritance Tax or Wealth Tax, Personal Tax lies at just 20%, with Corporation Tax lower still at 10% and Pension Tax is often less than 5%. Sound interesting? That leads us on to the first of the big questions – will the property increase in value?

High projected price rises

While cast-iron guarantees can never be given in this area, the facts suggest that Cyprus is certainly more of an investment than a speculation. Since early entry into the European Union in May 2004, property prices have steadily increased and the corresponding alignment of regulations and services has seen a massive flood of investment into Cyprus. Indeed, over the next ten years, economic activity is expected to double to £5.2b. A quick tip: popular, easily accessible areas ripe for development, such as Larnaca, will see much of the EU investment and, as such, are wise areas to buy in.

Joining the Euro in January 2008

The final step for Cyprus becoming a full EU member will take place in January 2008, when it enters the Euro. For all other Mediterranean countries, this has had a considerable positive impact on the economy and, more importantly for investors, on property prices. That it does the same for Cyprus is almost guaranteed.

Extensive investment in infrastructure

If you’re not planning to live in your Cypriot property on a permanent basis yourself, then the strength of the rental market is of vital importance to your investment and this is another area that has benefited from EU money, with the government spending on infrastructure, facilities and raising the profile of the country internationally. Mercifully, Cyprus has always been at the higher-end of the European tourism spectrum, yet more and more visitors arrive every year. This is reflected in the £200m that has been invested in Pathos and Larnaca airports.