Real Estate Investor Magazine South Africa May 2016 | Page 58

CYPRUS INVESTMENT

Life on the

Mediterranean Ocean
Cyprus offers great potential as an Investment Destination
BY JENNY ELLINAS

A

s the largest island in the eastern
Mediterranean yet the third smallest country
in the European Union (EU), Cyprus
offers attractive investment opportunities through
its citizenship by investment programme for those
looking for a good rand hedge and solid returns.
Property investment in Cyprus is currently a
prudent one to make, as investors would be entering
the market at the bottom of the cycle, always the best
time to invest in property. “The returns that investors
who bought property at the bottom of the cycle are
expected to make are always higher as they will be
able to take advantage of the capital appreciation as
the market gains traction and prices increase
In order to qualify for the citizenship by
investment programme, applicants will need to
purchase residential or commercial property within
the Republic of Cyprus to the minimum value of
€2,500,000. This investment amount can be made up
of multiple properties to reach the required value. In
addition to making a financial investment, applicants
must also have a valid passport, have no criminal
record and provide documents supporting the source
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MAY 2016 SA Real Estate Investor

and origin of the declared funds for investment.
Various application and professional fees are also
payable by applicants.
What is often appealing to many applicants of the
citizenship by investment programme are packages
where the property that is purchased already has
a lease agreement in place. Investors can expect
to achieve returns of between 3% and 5% on these
properties, and some developments are even providing
guaranteed rental returns for a fixed period of two
years, with rental returns in the region of 5.5% paid up
in advance. This gives investors a prime opportunity
to reinvest.
Aside from great property investment opportunities,
Cyprus has a rich archaeological history and natural
beauty, and can offer investors all the benefits of EU
citizenship. Cyprus offers the perfect combination
of lifestyle benefits and financial reward, especially
considering that it also offers the lowest legitimate
corporate tax rate onshore in the EU of around 12%.

RESOURCES
Cypriot Realty
www.reimag.co.za