INVESTING IN CYPRUS
Investing in Cyprus has become a very attractive proposition in recent years. There are many reasons why you should invest in Cyprus, not just the highly rewarding government-backed Cyprus Permanent Residency Programme”.
The third largest island in the Mediterranean Sea, Cyprus boasts a warm climate and beautiful coastline, making it popular with visitors and holidaymakers from around the world. Cyprus is also a dynamic and forward-looking country, both in terms of business culture and property development. There are several convincing arguments for investing in Cyprus. Let’s examine some of the main reasons why Cyprus can provide a good return on investment for overseas investors
Attractive tax system
Cyprus offers one of the most attractive tax systems in the EU for investors. Corporate tax rate is just 12,5%, with capital gains tax exemption. There is no withholding tax and no taxation on dividends, shares or trading profits. Personal taxation is low, with a tax-free threshold up to €19,500, zero inheritance tax, and no tax on immovable property.
Low cost of doing business
The competitive taxation rate mentioned above, combined with a growing double taxation treaty network across the EU, means that the cost of doing business in Cyprus is low. The corporate tax rate of 12,5% can be reduced further, by using the Cyprus IP (Intellectual Property) tax regime, to yield an effective tax rate as low as 2.5%.
Friendly business environment
Cyprus has a robust economy, mainly in the services sector, characterized by openness and simplicity. The common law legal system, EU membership and close ties with the UK, make it a business-friendly place to invest. It only takes 2-3 days to register a business and the business taxation rates make it highly attractive.
Real estate investors that are not native Cypriots can acquire permanent residency permit. The requirements are that investments of €300.000 are made in Cyprus-based properties. Other criteria include having a clean criminal record, annual personal income of at least €30.000 and bank deposit of minimum €30.000 in the Cypriot bank.
Cyprus is notable for its resilient economy. It was quick to exit the EU-IMF bailout scheme, and has managed to maintain a growth rate. Particular effort has been put in by the Cyprus government to ensure that the island operates on a robust and sustainable fiscal footing, encouraging foreign investment and promoting new areas of growth such as education and banking.
Hydrocarbon (oil and gas) opportunities
The EU is very dependent on energy imports from Russia, Norway and Algeria. US Geological surveys revealed that there is an immense amount of untapped oil and gas reserves in Cyprus, enough to solve the lack of energy resources in Cyprus and the EU for many years to come. This will also attract more investment in Cyprus and encourage a booming economy.
Access to EU markets
As a member state of the EU, Cyprus offers access to the EU single market, which guarantees free movement of goods, capital, services and labour between all 27 member states. The internal market of the EU consists of more than 500 million people and can be accessed instantly, without paperwork or bureaucracy.
High quality of life
Cyprus boasts a warm climate, friendly and welcoming people, and low cost of living. The infrastructure of the island is good with excellent transport links, well maintained highways, and good communication provision. The Cypriot coastline is very attractive and well-cared for with 57 beaches achieving the EU Blue Flag for quality.
WHY INVEST IN LIMASSOL?
If you’re considering investing in Cyprus, then the city and region of Limassol is a great place to start. Located near the southern tip of the island, Limassol has a lively city centre that is a popular tourist destination due to the historical medieval castle, ancient Greek ruins and remains, as well as the attractive marina and harbour. Limassol also has a thriving industrial sector, due to its port and harbour.
Due to its economic success, Limassol has become a popular place to live and work, as well as providing a good investment opportunity, especially in the growing property development market. Let’s explore some of the advantages of investing and living in Limassol.
International business centre
Limassol has become a hub for foreign investment and international business. The main reasons for this are low taxation (12,5% corporation tax across Cyprus), good industrial infrastructure, and excellent shipping links.
Fastest developing city in Cyprus
Limassol has seen substantial investment from Russia, the Middle East, Far East and other countries in recent years. Most of this investment has been in property development. Population growth from approximately 43,000 in 1960 to 240,000 today, has led to high demand for property.
Large number of accounting and legal firms
Limassol has seen a growth of financial services such as banking and fund management in recent years. This has also led to an increase in accounting and legal firms to manage and assist this sector of the economy.
Limassol is home to the largest port and harbour in Cyprus, with numerous global shipping companies operating from the city. Annually, more than 4 million tonnes of cargo is handled, and over 1 million cruise and ferry passengers arrive and depart.
Cosmopolitan city with a skilled workforce
With its growing industry, shipping status and thriving economy, Limassol has become a popular place for skilled workers to relocate from around the world. Engineers, construction workers, manufacturers, managers, and financial service providers are among some of the most popular occupations.
New “City of Dreams” casino
A symbol of Limassol’s success and tourist popularity is the new City of Dreams casino. Due to open in 2021, it’s the first integrated casino-resort destination to be built in Europe. This will bring extra tourism, money and employment to the area, leading to yet more demand for residential property.