Economic-business motives to Cyprus Real Estate

Cyprus is perhaps the world's most ideal business and investment gateway to the EMEA region.

Economically, Cyprus is going through some major challenges and changes, especially with a complete overhaul and restructuring of its banking sector. This is however, in an effort to make the country a lot more sustainable in the long term. Cyprus continues to boast key business and corporate advantages, making it an ideal business, trading and investment gateway to the EMEA region.

Key economic sectors in Cyprus include professional corporate service, tourism and hospitality, maritime and shipping (3rd largest in the EU and 10th in the world), property and construction, food and agriculture, as well as fast emerging as a leading international education centre. More recently, Cyprus discovered extensive reserves in hydrocarbons (natural gas and possibly oil). These are currently being explored by US based organisations, Russian and European-French. No doubt, such developments have the capacity to dramatically alter the dynamic of the economic landscape in Cyprus, and significantly boost economic activity. With this will come major investments, both direct and indirect in real estate.

Cyprus is also well known for its professional corporate services, remaining one of the most favourable jurisdiction vehicle for holding companies to be used as part of international tax structure, and as an investment gateway to the EU and wider EMEA region. This is mainly due to its low (lowest in the EU at 12.5%) corporate tax rate, extensive network of double tax treaties with other countries, as well as a host of other possible intra-group synergies, such as no financial transaction tax, dividends as well as gains from disposal of shares/bonds are exempted from taxation, no withholding tax on dividends or interest paid to non-resident, etc). Business-friendly government and infrastructure is well placed to support these services in taxation, legal, accounting and finance, including highly skilled, educated and multilingual workforce – In fact maintains the highest tertiary education rate in the EU. Little wonder why Cyprus has fast become a popular choice as a business and investment hub to the EMEA region, especially for emerging BRIC nations Russia, India and China to trade in the European Union, Europe, Middle East and Africa. This then drives further demand for real estate in Cyprus.