| Buying a vacation property has become more than | | | | But Cyprus is also a popular travel and leisure |
| just trendy ? it has become an important part of | | | | destination, with regular affordable flights from major |
| anyone's financial portfolio. People from Western | | | | European cities. Visitors look for quality |
| countries are increasingly snapping up vacation | | | | accommodation, such as villas and apartments can |
| properties in the Caribbean, the Mediterranean, and | | | | offer. This makes Cyprus property a good investment, |
| other choice locations in warmer climates. | | | | earning an income until the owner wants to sell and |
| One island that is seeing renewed interest is Cyprus. | | | | cash in...or until the owner decides to retire and use the |
| Being a relatively new member of the European | | | | property for his own purposes. |
| Community, Cyprus property are also seen a surge in | | | | Of course, over 320 days of sunshine certainly don't |
| demand because English is widely spoken as a | | | | hurt land values on this Mediterranean island. |
| second language. | | | | Unlike in many other sunshine destinations, the legal |
| Being part of the EEC is expected to be a precursor | | | | system in Cyprus is mostly based on the British legal |
| to increased property prices, making Cyprus an | | | | system and is designed to safeguard the property |
| excellent long-term investment for real estate. The | | | | purchaser. This makes it particularly attractive to UK |
| stable economy is expected to continue to grow as a | | | | investors. Once the contract of sale is signed and a |
| result. | | | | deposit is paid, the contract is registered at the land |
| Investment properties in Cyprus are like tax havens | | | | registry office. This procedure protects the purchaser's |
| The exciting news for any property investor is that | | | | ownership rights until the title deeds are issued and |
| Cyprus is almost like a tax haven within the European | | | | transferred to his or her name. The contract in the |
| Community. There is no inheritance tax or gift tax, | | | | hands of the Land Registry cannot be withdrawn by |
| pensions from abroad are taxed at a flat rate of just | | | | anyone, and therefore the property cannot be leased, |
| 5%, interest earned on foreign capital imported into | | | | sold, transferred or mortgaged. Only the purchaser |
| Cyprus is tax exempt, and investment income remitted | | | | himself can alter this status. |
| to Cyprus by foreign nations is taxed at a flat rate of | | | | Cyprus investment properties might require some |
| 5%. Even the corporate tax rate is a flat 10%. Cyprus | | | | patience |
| also has signed double taxation agreements with | | | | With so much going for it, even Cyprus is not perfect. |
| many countries, including the United Kingdom. A Capital | | | | Sometimes it does take patience to buy property in |
| Gains Tax of 20% is payable on the sale of | | | | Cyprus. As with many sunny locations, the bureaucrats |
| immovable property in Cyprus, but no capital gains tax | | | | don't always see the need to rush and paperwork can |
| is payable on gains from investments. Personal income | | | | take longer than an eager buyer would sometimes like. |
| tax rates range form 0 - 30%. | | | | In the case of buying property "off-plan", it can often |
| Interestingly, there is increasing demand for Cyprus | | | | take a couple years for the development to be |
| properties from non-traditional sources, including the | | | | completed...meaning that the buyer might need some |
| Middle East, Russia and its former states and United | | | | bridge financing until the property can be let and |
| States, as well. | | | | income starts rolling in. Mortgages, usually up to 75%, |
| According to Glen Young of SunSeaker Properties, a | | | | are readily available, and the wise investor will look for |
| Cyprus real estate company, the island has the dual | | | | one that requires only 30% to be paid down over the |
| benefits of being popular for both retirees and | | | | period of construction, making financing affordable to |
| vacationers. Retirees buy property in Cyprus for their | | | | average investors. |
| own use, largely to bask in the warm Mediterranean | | | | With a little planning and patience, Cyprus properties |
| sun and escape the snow and cold winds of winter. | | | | are easy to obtain and promise to carry a positive |
| The attraction of Cyprus as a second home (or a | | | | return on investment. Sooner or later, everyone retires; |
| new first home) is helped by a skilled work force, | | | | it's never too early to stake out an investment |
| relatively affordable prices and a friendly, welcoming | | | | property on your favorite Cyprus beach. |
| population. | | | | |