Cyprus: where luxury and international property and development meet in Limassol.
Limassol is a charming town in Cyprus, becoming famous in the international scenario for the new luxury development and property scenario.
Many clients of mine are contacting us asking about where to invest in the international markets and why Cyprus is becoming the queen city for investments. I’ve then decided to pool my answers in this quick guide for you.
Let’s begin our journey, shall we?
1 – LOCATION, LOCATION, LOCATION
You can invest everywhere in the world, but the location will be always the King.
Cyprus sits between Africa, Europe, and Asia. This strengthens its position as a major Eastern Mediterranean trading post as well as a renowned international business and services center. This vintage positioning allows Cyprus to act as a point of exchange between these three continents, therefore, offering businesses easier access to new markets.
This positioning also makes the island an active transshipment center that facilitates the shipment of goods into and out of the European Union effectively qualifying it as a business hub.
2 – POLITICAL AND ECONOMIC STABILITY
Cyprus enjoys a stable political climate, with a prosperous democracy. The age of recession is now a memory of the past and official report highlight the return back to growth and economic stability.
Cyprus is also untouched by terrorism and racism (typical sores in Europe and the Middle East). Therefore, international clients (especially from Russia and China) are feeling more confident in investing here.
3 – AN HAPPY TAX SYSTEM
Cyprus boasts an efficient and attractive tax structure which fully adheres to EU, OECD, and International regulations.
Although there is a new legislation discussed at the moment to attract further international investments, the Tax System has already the following highlights:
- Cyprus has the lowest corporate income tax rate in the EU, with tax residents companies taxed a flat rate of 12.5%.
- Foreign sourced dividends are generally exempt from tax when received by Cypriot tax resident companies.
- Low individual income-tax rates: individuals earning less than €19,500 per annum pay no income tax, while those earning more than €60,000 pay a tax of 35%
- Disposals of shares and other qualifying securities (such as corporate bonds) are exempt from tax provided the disposed of a company does not hold any immovable property in Cyprus.
- Generally no withholding taxes on payments from the island.
- Profits of a foreign Permanent Establishments (PE) are exempt from taxation, under easily met conditions.
As we can see, the results of this flexible tax regime bring more holding companies, finance institutions, IP companies and value chain transformation companies to Cyprus. Taxes incentives reduce costs in making business, reflecting into competitive prices and also higher profits.
4 – PASSPORT FOR RESIDENTS
Foreign investors (including property and development ones) have the golden opportunity obtain a Permanent residence Permit or EU/Cyprus citizenship. The Government would run a scrupulous check on the applicant, but usually, it takes 3/4 months to obtain your brand new passport.
The main requirement asked by the Government is to invest in Cyprus.
5 – BANKING AND PROFESSIONAL SERVICES
This golden island has a large number of highly educated and efficient public accountants and advocates offering prime services. They are also multilingual, proficient in English, Greek, Turkish and Russian. Liaising with international clients is therefore not a problem and an international investor can access to top-notch legal services, accounting, management consultancy, and financial advisory.
Cyprus has also a strong banking system offering asset management, syndicated loans, retail banking, custodian services, private banking, and investment banking.
6 – LEGAL STRUCTURE
The legal structure in Cyprus finds its roots in the English Common Law, promoting transparency end efficiency in dealing. Foreign investors will also find a familiar and easy legal system to deal with.
The most relevant elements within the Cyprian legal system are:
- Banking law
- Investment services and Regulated Markets Law
- Trustees law
- International Trusts Law
- Cyprus Stock Exchange Law
- Company Law Chapter 113
- Law on the Prevention and Suppression of Money Laundering
- Insurance services law
- Merchant Shipping law
- Limited and Unlimited liability partnership chapter 116
7 – THE ENERGY OPPORTUNITY
This country and the European Union at large, are highly dependent on energy imports.
The EU produces 48% of its energy needs and imports the remaining 52% from Russia, Algeria, and Norway.
The island’s substantial oil and gas reserves could change the European Union’s energy narrative. According to US Geological Surveys, the level of untapped oil and gas reserves in that region is immense. As a result, the government is on course to construct an energy center that will have storage facilities, transit equipment as well as exploitation mechanisms.
Hydrocarbon exploitation will not only solve the countries’ energy deficits but also attract business people from all over the world.
8 – THE BEAUTIFUL LIVING
Cyprus is a dazzling island, boasting lavish sea shores, fiery sunsets, friendly people, glorious mountains, long sunshine exposure, inclination towards arts and culture, and beautiful property scenario.
Besides its beauty, this paradise has a low crime rate (the country has been ranked the safest smaller country in the world and fifth worldwide by ValuePenguin), lower costs of living when compared to other business locations and a stimulating economic system.
Cyprus has been ranked the 23rd country in the world regarding the quality of life.
These elements, including as well lower street, are just the keys elements to boost business to the stars.
9 – CYPRUS AND THE EU
On the 1st May 2004, Cyprus gained its membership into the European Union and adopted the Euro in 2008.
This means that Cyprus has access to to the European currency and also the European legislation, granting more stability and benefits. It also remarks the trust given to Cyprus, as the membership to the Union is a vote of confidence which is useful in guaranteeing stability and safety for investors.
10 – STRONG INFRASTRUCTURES
Cyprus has invested heavily in telecommunications, shipping and road and air transport. It is home to sophisticated roads with multiple lanes which allow for faster and efficient movement between points. These roads complement their two world-class international airports; one in Larnaca and the other in Paphos which see approximately 10 million visitors come to the island. These airports also play a pivotal role in linking Cyprus with numerous global destinations.
It also has two deep sea ports located in Larnaca and Limassol. Limassol is a popular pause point for international cruise liners. Besides, it handles freight cargo, and it utilizes advanced logistic solutions which reduce costs and increases efficiency.
This country is considered a telecommunications center, with satellite and submarine fiber optic cables connected it to the rest of Europe, Asia, and the Middle East. The Eastern Mediterranean Island also has fast internet connectivity.
Furthermore, an English-based system of education, reliable and affordable health services, booming tourism industry as well macroeconomic stability boosts Cyprus’ credentials as a desirable investment destination.
Having established why you should invest in Cyprus, it is imperative you determine investment opportunities available. The property and development scenario is definitely a profitable opportunity waiting for you.
Could Cyprus be the goose that lays the golden egg?
If you have a question about Cyprus or Limassol, just let me know!