The Cyprus real estate market has always been highly attractive to foreign investors and lifestyle purchasers due to the beautiful natural surroundings, highly developed infrastructure, ideal location and attractive tax system amongst other reasons. Over the past three years, the Cyprus economy has witnessed considerable growth, this can be attributed to the significant activities in the shipping, tourism, oil and gas, and financial service sectors. The real estate market has also seen significant growth, particularly for high-value properties. According to official land registry statistics unit sales to foreigners rose by 34% in 2016 compared with 2015, while H1 2017 saw a 106% increase over H1 2016.
The figures also show that 92% of property transactions with a value over €1.5M occur in Pafos and Limassol. As with all markets, prime properties, including seafront and integrated resorts, offer the best value and security of investment. To enhance FDI, the Cyprus government has introduced several tax incentives, for example, properties subject to VAT are exempt from transfer fees, while first time investors can benefit from a reduced vat rate of 5% instead of the prevailing rate of 19%. What’s more as of 1st January 2017 immovable property tax has been abolished. It’s an excellent time to invest.
ONE, the tallest seafront residential tower in Europe
Immerse yourself in the beauty of life at MINTHIS
In addition to the above flagship developments, Pafilia has a vast and varied portfolio across the southwest of the island, the area most popular for foreign investment.
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