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For more information to complete the application form.
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COUNTRIES |
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CLUB RATING. |
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Rentability |
Developed and mature rental market Steady & Strong |
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Capital Appreciation |
5-10 year plan, Too early to tell |
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Long term rating |
Excellent airports and direct flights |
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Country History
A former British colony, Cyprus became independent
in 1960 following years of resistance to British rule. Tensions
between the Greek Cypriot majority and Turkish Cypriot minority
came to a head in December 1963, when violence broke out
in the capital of Nicosia. Despite the deployment of UN peacekeepers
in 1964, sporadic intercommunal violence continued forcing
most Turkish Cypriots into enclaves throughout the island.
In 1974, a Greek Government-sponsored attempt to seize control
of Cyprus was met by military intervention from Turkey, which
soon controlled more than a third of the island. In 1983,
the Turkish-held area declared itself the "Turkish Republic
of Northern Cyprus," but it is recognized only by Turkey.
The latest two-year round of UN-brokered talks - between
the leaders of the Greek Cypriot and Turkish Cypriot communities
to reach an agreement to reunite the divided island - ended
when the Greek Cypriots rejected the UN settlement plan in
an April 2004 referendum. The entire island entered the EU
on 1 May 2004, although the EU acquis - the body of common
rights and obligations - applies only to the areas under
direct Republic of Cyprus control, and is suspended in the
areas administered by Turkish Cypriots. At present, every
Cypriot carrying a Cyprus passport has the status of a European
citizen; however, EU laws do not apply to north Cyprus. Nicosia
continues to oppose EU efforts to establish direct trade
and economic links to north Cyprus as a way of encouraging
the Turkish Cypriot community to continue to support reunification.
Country Facts
Location: Middle East, island in the Mediterranean Sea, south of Turkey
Land Area: total: 9,250 sq km (of which 3,355 sq km are in north Cyprus) land: 9,240 sq km water: 10 sq km
Land Boundaries: total: NA; note - boundary with Dhekelia is being resurveyed border countries: Akrotiri 47.4 km, Dhekelia NA
Coastline: 648 km
Climate: temperate: temperate; Mediterranean with hot, dry summers and cool winters
Terrain: central plain with mountains to north and south; scattered but significant plains along southern coast
Environmental Issues to consider: water resource problems (no natural reservoir catchments, seasonal disparity in rainfall, sea water intrusion to island's largest aquifer, increased salination in the north); water pollution from sewage and industrial wastes; coastal degradation; loss of wildlife habitats from urbanization
Population: 784,301 (July 2006 est.) 0-14 years: 20.4% (male 81,776/female 78,272) 15-64 years: 68% (male 270,254/female 263,354) 65 years and over: 11.6% (male 39,536/female 51,109) (2006 est.)
Government Type: republic. capital city - Nicosia, note: a separation of the two ethnic communities inhabiting the island began following the outbreak of communal strife in 1963; this separation was further solidified after the Turkish intervention in July 1974 that followed a Greek junta-supported coup attempt gave the Turkish Cypriots de facto control in the north; Greek Cypriots control the only internationally recognized government; on 15 November 1983 Turkish Cypriot "President" Rauf DENKTASH declared independence and the formation of a "Turkish Republic of Northern Cyprus" (TRNC), which is recognized only by Turkey
Legal System: based on common law, with civil law modifications; accepts compulsory ICJ jurisdiction, with reservations
GDP Republic of Cyprus: $16.85 billion; north Cyprus: $4.54 billion (2005 est.), Republic of Cyprus: $21,600 (2005 est.); north Cyprus: $7,135 (2004 est.) GDP Growth Rate Republic of Cyprus: 3.7%; north Cyprus:
10.6% (2005 est.) Inflation Rate: Republic of Cyprus: 2.5%
(2005 est.); north Cyprus: 9.1% (2004 est.)
Why Buy In Cyprus?
The Republic of Cyprus has a market economy dominated by the service sector, which accounts for 76% of GDP. Tourism and financial services are the most important sectors; erratic growth rates over the past decade reflect the economy's reliance on tourism, which often fluctuates with political instability in the region and economic conditions in Western Europe. Nevertheless, the economy grew a healthy 3.7% per year in 2004 and 2005, well above the EU average. Cyprus joined the European Exchange Rate Mechanism (ERM2) in May 2005. The government has initiated an aggressive austerity program, which has cut the budget deficit to below 3% but continued fiscal discipline is necessary if Cyprus is to meet its goal of adopting the euro on 1 January 2008. As in the area administered by Turkish Cypriots, water shortages are a perennial problem; a few desalination plants are now on line. After 10 years of drought, the country received substantial rainfall from 2001-03 alleviating immediate concerns.
The Turkish Cypriot economy has roughly one-third of the per capita GDP of the south, and economic growth tends to be volatile, given north Cyprus's relative isolation, bloated public sector, reliance on the Turkish lira, and small market size. The Turkish Cypriot economy grew 15.4% in 2004, fueled by growth in the construction and education sectors, as well as increased employment of Turkish Cypriots in the Republic of Cyprus. The Turkish Cypriots are heavily dependent on transfers from the Turkish Government. Under the 2003-06 economic protocol, Ankara plans to provide around $550 million to the "TRNC." Agriculture and services, together, employ more than half of the work force.
Why Buy In Cyprus?
On an island that
is now fifth most popular foreign destination, many
ex-pats have been attracted by the 300-odd days of sunshine
annually and the island’s low flat
tax rate for non-Cypriot residents of just five per cent.
The low cost of living is an added bonus that reportedly
has encouraged 60,000 Britons to buy a second home in Cyprus,
where many have bought on newer developments.
In the tourist resort
of Paphos, on the island’s
west coast, an average two-bedroom apartment costs CY£67,000,
a two-bedroom holiday villa CY£130,000, and a three-bedroom
house from CY£185,000. In Larnaca, a town becoming
increasingly popular with Britons due to keen pricing, a
two-bed apartment costs from CY£42,000, and a two-bedroom
holiday villa from CY£97,000, an increase on the previous
year.
Prices look set to
continue to rise too, fuelled by the investment opportunities
that joining the EU will bring by the opening up of the
island’s previously closed ‘buy to let’ market.
The rule of thumb for investors is to buy a two-bedroom
property because they let (and sell) the easiest! If you
can afford it, buy a place with its own pool and as near
to the sea, town, nightlife and amenities as possible as
this will again be attractive to tenants."
Conditions of Buying:-
- Once an offer is made on a property, it is normal to pay a deposit of between CY£1,000 and CY£2,000 to reserve the property. Upon signing the contract the buyer pays 20-30 per cent of the value of the property, and the balance thereafter.
- With the joining of the EU, certain property ownership restrictions currently in place will be relaxed. At present, however, a non-Cypriot is: permitted to buy for personal use a house or piece of land up to 2,675 sq m, not allowed to let the property for personal gain.
- Transfer taxes on the purchase of a property are 3% on the first CY£50,000; 5% on CY£50,001-100,000; and 8% on CY£100,001 and over.
- Stamp duty is levied at CY£1.50 per CY£1,000 on the purchase price up to the value of CY£100,000, and thereafter at CY£2 per every additional CY£1,000.
- Annual property tax is charged at 2-3.5% of the market value of the property. In the case of individuals, however, the first CY£100,000 of house value is tax exempt.
- Property sales are subject to Capital Gains tax at the rate of 20% on the gain, although the first £10,000 gain is exempt.
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Useful Information: |
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Time Difference: +2 GMT |
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Currency: Cyprus Pound(CYP) |
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Flying Time: 4 1/2 Hours |
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Visa Required: Yes, Over 90 days |
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Major Airports: Larnaca, Paphos |
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Work Visa Required: Yes |
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Dialing Code: 00 357 |
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Electricity: 240V/50Hz |
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