Owning Cyprus property is considered to be a solid investment as the Cypriot economy shows clear results of improvement. Lauded as an 'economic miracle', the Cypriot economy grew by 1.6% in 2016 and is expected to expand by another 2% in 2017.
Cyprus property legislation is straightforward, and the market offers viable options for both business and personal needs. Divided into two major hubs, the Cyprus property market consists of the urban centres of Nicosia, Limassol and Larnaca - mainly driven by local demand and the coastal area of Paphos, mainly driven by foreign demand.
Countering the risks
Drawing upon our expertise, we are able to ensure that the buyer is fully protected when purchasing Cyprus property. In this respect, it is crucial that one is aware of the possible risks, which include; the purchase of property in the North of Cyprus and the availability of the title deed relating to the property.
Ownership of property in the North of Cyprus is sometimes disputed, with many claims to ownership from people displaced during the events of 1974. Purchasing such property may indeed result in potential pitfalls. Another matter to keep in mind is the importance of having the title deed readily available - which essentially confirms that title searches have been carried out and have been effectively cleared - the absence of which, gave rise to a number of challenges during the Cypriot financial crisis.
Tone at the top
In an effort to protect buyers, the Cypriot authorities are carrying out improvements in the Cypriot legal framework to encourage growth in the sector. In 2015, the newly issued 'Trapped Buyers Law' has paved the way for enhanced transparency and additional benefits to buyers. More specifically, the Law has provides for exemption from future capital gains taxes, as well as the benefit a 50% discount on title deeds transfer tax.
The housing market is expected to continue improving in the coming months, amidst economic recovery, improvements in the banking system, and increased investor confidence due to the passing of new legislation offering tax incentives and offer homebuyers the protection that is required.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.