The Cypriot property market is at an 11-year high, following a rush of applications to the country’s ‘Golden Visa’ citizenship programme.
According to the Cypriot property developer Leptos Estates, the flurry of interest from overseas property investors has been boosted by the government’s ‘Golden Visa Programme’. Buyers can gain residency, work and live freely within the EU and Schengen zone in return for a property purchase of €300,000.
The scheme has attracted an estimated €4 billion worth of investment in the Cypriot property market since 2013 and contributed a 20 per cent increase in foreign buying activity, compared to this time last year.
Foreign purchasers also made up 44.6 per cent of all property sales in Cyprus between January and May 2019. Of these properties, 71 per cent were purchased by non-EU nationals.
The country’s tax system also continues to entice international buyers; the corporation tax rate for all companies is just 12.5 per cent. The first €19,500 of earned annual income is tax-free, while foreign pensions above €3,420 are taxed at just 5 per cent – both reasons why more foreigners purchased homes than Cypriots in 2018.
In addition, Cyprus has also invested heavily in its infrastructure to create a cosmopolitan destination in line with top global hotspots, including a new DP World cruise terminal, the construction of Europe’s largest casino resort, private jet and yachting services, golf courses and new designer retail offerings.
Paphos remains the most popular location for EU and non-EU buyers and entrepreneurs, contributing 40.6 per cent of all sales between January and May 2019 according to Pantelis Leptos, deputy president of Leptos Group of Companies.
He said: ‘Paphos was followed by Limassol with 29.5 per cent of all sales, Larnaca with 15.3 per cent, Farmagusta with 7.4 per cent and Nicosia with just 7.2 per cent.
‘Prime residential developments (€1 million plus), have seen the greatest surge in value over the past year, increasing by 27% on average, compared to properties below this bracket, which have seen an average growth of approximately 6 per cent on the previous year.’
The Cypriot property market is going from strength to strength, aided by overseas property investors.