If you’re thinking about investing overseas but not sure where to look, you might want to consider Cyprus. The Mediterranean country is rapidly becoming a popular location for savvy buyers. Property investors are reaping the benefits of the island, with property prices rising consistently over the past few years.
Because of its location, Cyprus has been a vital trade hub for thousands of years. Recently, as a result of the 2013 financial crisis, it’s been on the rise again. Cyprus offers many benefits for foreign investors, such as a prime location and a qualified labour force, along with a reliable transport and communications infrastructure.
The country continues to be attractive – not just for overseas businesses, but also for expats, with a rising number of Brits, Russians and Chinese moving there. Chinese and Russian investors have played a big role in the economic recovery of the country, with industries like construction reaping the benefit of the increasing demand for housing.
Foreign investors have influenced the economy so much that they’re now specifically targeted by the real estate industry and Cypriot government. In an attempt to encourage more foreign investment, the government has introduced a citizenship scheme, where investors can get Cypriot citizenship by investing €2 million—as well as making two €75,000 donations.
Here are five more reasons why Cyprus is so attractive to overseas investors.
Cyprus joined the European Union in 2004 and the Eurozone in 2008. The island suffered from a banking crisis in 2013, but it’s been on the road to recovery since then. Cyprus continues to draw more investors and tourists every year. Since joining the Eurozone, Cyprus has given foreign investors a path into the European market, not to mention lower costs, fewer risks, and access to the single currency.
With Brexit, however, it is currently uncertain whether Brits will have the automatic right to live and work in Cyprus following the completion of the transition period at the end of 2020 – so it pays to keep an ear to the ground at this time. Nevertheless, it is unlikely that Brexit will affect the Cypriot government’s drive to attract global investment, so avenues will likely still remain open for investors.
Cyprus has one of the most attractive tax systems in the world for businesses, with a corporate tax rate of 12.5%. It also offers foreign investors low start-up and operational costs. The Cypriot government provides business-friendly legislation that helps investors to hit the ground running – like tax benefits, as well as residence and work permits.
The island has a stable telecommunications system, including national Wi-Fi networks and mobile coverage that serves the whole of Cyprus. It also has strong transport infrastructure, with two international airports (Larnaca and Paphos) plus two deep seaports. All the cities are linked by a well-maintained and ever-improving highway system.
Sandwiched between Europe, Asia and Africa, Cyprus has always been a great location for global trade. It’s also an ideal transhipment centre, with Cypriot companies working alone and with foreign partners to ship goods in and out of the EU via Cyprus. More recently, oil and natural gas have been discovered below Cypriot waters, which has bolstered the importance of the island’s location.
Cyprus offers a fantastic working and living environment, with notable arts, culture and cuisine available on the island. Which means there’s plenty to do when you’re winding down from business. The country offers a slower pace of life than the UK, with shorter commutes giving you more chances to enjoy the year-round sunshine.
So, with all that the country has to offer, if you’re thinking of investing in Cyprus get in touch with us to see how we can help you with your currency exchange needs, with a number of tools and services available that will save you money and make your currency transactions seamless.
*The information in this article is correct at the time of publishing (February 2020). It could change depending on what is agreed between the UK and the EU during the 2020 transition period.
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