High-End Residential Living in Cyprus
There are numerous high-quality homes around Cyprus in the region of €1.5 – €5 mil. (plus), whose main interest comes from the foreign market, since by local standards this is a considerable amount for such an investment.
Approximately 60% of the Cyprus real estate demand comes from foreign buyers (i.e. non E.U. countries) mainly comprising of Russia, Ukraine and to a lesser extent from China, a recently introduced market. The rising economy of India and the recent problems in Hong Kong, is another source of increasing demand be it at a very low level at this point of time.
The Cyprus investment scheme which require a residential investment of €2.0 mil. (+ another €150.000 for Governmental housing and innovative industries) seem to be quite attractive to the international market, relating to the securing of Cypriot passports. Our favorable tax system, which in addition to other benefits reduces the income tax to very high salary earners/international employees by almost 50%, the booming shipping industry, tourism and other activities, have also turned the attention of international high end residential demand to Cyprus.
To the foreign market and as a projection to it, we have some locals who earn unusual high amounts of money and which comprise of the more known business people and some accountants, advocates, auditing firms and doctors, who are all in the local market for such a type of property.
In addition to quality, location is a major criteria of choice, as is the plot size (around 1.500-3.000 m2 of gardens), high technology (smart homes) and facilities provided, such as swimming pools, large reception areas, cinema room, mature gardens, views and so on comprise the basic buyers criteria.
The favorite spots of demand for the foreign market is mainly Limassol town/outskirts, as well as that of Paphos (to a lesser extent) and even less that of Nicosia, with the bottom scale being the Famagusta and Larnaca regions.
The high-end houses do not have a wide and ready demand, but the prices required as compared with the recently developed sky-scrapers apartments, which appear to have nowadays a ready market, are by comparison a better deal.
Nicosia has, by comparison to other areas the lowest prices of such a standard, as opposed to comparative prices in the Limassol region being around ½ of this town. Yet for the foreign market having sea views/being close to the beach is the main prerequisite for the price set up.
In general, Cyprus real estate, as compared with other countries and in addition to the acquisition cost, it has low transfer fees-stamp duties (halved from the previous requirement) and no property tax, no estate duty and even low Municipal taxes. By comparison, ownership taxes are very low as is the VAT (5% for permanent residential units by the buyers – as compared with the 19%, 24% etc., in other countries).
Non important as it may sound, the security of living (2nd lower crime rate in the E.U.) and the attraction offered by foreign speaking schools, colleges and universities, which are connected at a higher level with mainly U.K. universities, is another attraction which has a reflection on the housing/family living attraction, as is the clean atmosphere and sunny weather for 300 days p.a.
For those who want to combine living here and business, the second has low overhead cost by comparison, in terms of rents/cost of staff, as is the availability of high quality of the latter, whereas at the end a major attraction is the widely spoken English language (90% of the locals speak English and 100% of the professionals and others).
The short distance and the well-connected areas/towns through a motorway network with a maximum driving distance of 45’-1 hour is another plus, as is the proximity of 4 international golf courses (another two golf courses pending) and blue flag beaches/sea, the availability of 3 completed marinas and 2 under development and the international casino (Las Vegas type) now under development with a completion date in 1½ years’ time.
Having acquired a home, living cost and eating out is at a very reasonable cost depending on the places you go. Similar food/drinks are at least ½ less the prices that in the tourist areas within the towns/beach ones, whereas drink cost is one of the lowest in Europe. Experience the out of town eating especially in small villages with the costs next to nothing. For the younger generation and those who feel young, entertainment of all sorts and sporting clubs are abundant.
This is a most attractive country for family living.