Cyprus real estate market seems to be awaking gradually from the deep recession and it is estimated that the second semester of 2014 and first semester of 2015 will be the perfect time to invest in Cyprus and especially in real estate and properties.
The above are based mainly on the following predictions:
(a) Cyprus economy is expected to start showing positive growth by 2015,
(b) A number of significant projects are under study and other on-going projects will be completed by the end of 2014, especially in coastal cities, that will improve the standard of living of the particular area and will boost tourism and the economy in general.
(c) Prices of properties will remain low and are expected to reach the bottom line during the second semester of 2014 before start rising slowly again during 2015.
(d) Until the end of 2014 there are NO transfer fees payable to the government for the purchase of new properties (transfer fees are the fees that a buyer is obliged to pay when purchasing a property and a separate title deed is issued in his name)
(e) The Council of Ministers has approved, in certain occasions, the enforcement of even more favourable criteria for granting the Cyprus and EU citizenship to foreign investors and businessmen. More specifically, the Council of Ministers has now the discretion in certain occasions to reduce the current required investment limit of €5million in either government bonds (A1 category) or public companies’ shares and bonds (A2 category) or real estate and developments (A3 category) or registration and participation in private companies in Cyprus (A4 category) or a combination of the above as follows:
(i) to €2.5million if the investors are participating in a collective investment fund, provided that the total investment is at least €12.5million; and
(ii) to €2million if the investors are participating in a collective investment fund, provided that the investment is more than €12.5million (this provision was enforced only until 1 June 2014).
Furthermore, in order for the Council to be able to exercise its discretion according to points (i) and (ii) above, the investment of either A1 to A4 category is possible to come from various and different sellers or providers (natural or physical persons), not just one.
It is also important to note that in case the investor/businessman is not investing in real estate but in other areas as mentioned above, then there is a condition that he has to be the owner of a permanent residence in Cyprus of purchase value €500,000.
Therefore, in any case, investment in real estate is inevitable when an investor intends to apply for Cyprus citizenship. However, investing in real estate in Cyprus is not always a straight forward case, especially when it comes to title deeds and charged properties, so it is always advisable to use expert legal professionals to assist you in this regard.
Valentinos Ant. Soteriou,
ANTONAKIS SOTERIOU & ASSOCIATES LLC