Real Estate Investor Magazine South Africa May/June 2019 | Page 53

“W ealth is determined by purchasing power and soft currencies lose purchasing power as they self-destruct. If you live in South Africa, you live in an emerging market. We make up less than 1% of global GDP; we lack many future-forward industries and economic growth and our currency is uncertain. As seen below the self destruction of the RAND is shocking but with planning you can overcome this!” says Quality Group SA’s International Marketing and Sales Director, Costas Souris. If you’re serious about your wealth and preserving your lifestyle you need to diversify offshore into hard currency, passive income generated by property. Property is an asset class, which is least disrupted by the fast changing world we live in. After food we all need shelter to survive and even if we live on Mars we need shelter. Four walls and a roof! Passive income by property is an investment protecting family and wealth. Rentals increase protection against local inflation and rentals in hard currency protect against soft currencies like the rand. Further, the taxman allows many deductible expenses as rental property is treated like a business. Finally, the cherry on top, when the property is sold capital returned is in hard currency. Passive income can also provide additional benefits like golden visas -Permanent Residency (PR) and immediate EU Citizenship in a country such as Cyprus; a rich European nation which enjoys one of the fastest growing economies in the EU. Rated the 5th best relocation destination in the World (The respected Knight Frank) and with the lowest crime rate in the EU (Value Penguin). Cyprus was a former British Colony and today is a member of the Commonwealth and a EU country since 2004. Cyprus makes use of the Euro and has been an independent country since 1960. Although they share and enjoy common cultures, food and religion, Cyprus has always been independent of Greece. It is commonplace to see road signs in both Greek and English in Cyprus, one drives on the left side of the road, the Legal System is based on English common law and 90% of residents speak English. The tax system is fair, with the first €19 500 of rental income being tax–free. Corporate tax is 12,5 %, the lowest in Europe, and dividends are tax–free. Cyprus welcomes some 4 million tourists each year and over 200 000 expats have made Cyprus their home. A country blessed by natural beauty, with over 64 blue flag beaches, forests planted by Winston Churchill, snow skiing in Feb- March and where eating is a considered a celebration. Cyprus enjoys a 9month tourist season with something for everyone! Potential tourists exceed 800 million within 3 to 4 hours flight. Foreign investors own one in four properties in Cyprus as it makes a compelling argument for wealth preservation, personal use and passive income in €uro. Quality Group Cyprus, whose origins date back to 1991, has one clear goal; to work with families and high-net-worth individuals to Future-Proof Family and Wealth – particularly in uncertain times. Quality Group offers a wide range of property from residential villas and apartments to commercial multi-use complexes, including offices, shops, hotels, hospitals & frail care centres and on campus student accommodation. Joint ventures are welcomed and qualify for the PR and Citizenship programs. Prospective investors are invited to visit Cyprus “to see, touch and feel” hosted by Quality Group. For more information email us at [email protected] or contact Rose to arrange a confidential consultation [phone]. RESOURCES Quality Group SA Real Estate Investor Magazine MAY/JUNE 2019 51