Ten Reasons to Buy Property in Cyprus

1. Property rises of around 50% over the last three years.
2. Abundant choice of international brands and merchandise.
3. World class golf courses plus skiing in the Trodos Mountains.
4. Over 300 days of sunshine per year.
5. Well structured and effective banking system.
6. Extensive, unspoiled golden beaches.
7. Foreign investment is actively encouraged: numerous concessions for tourism related ventures.
8. Potential long term rental returns from golfers and holidaymakers.
9. Lower cost of living than northern Europe.
10. Largely unaffected by global financial crisis.

Key Facts

• Full Name: Republic of Cyprus
• Capital City: Nicosia
• Area: 9,251 sq km
• Population: 794,000
• Time Zone: GMT +2
• Languages: Greek. However, English is the most widely used foreign language for business, although French and German are also useful.
• Religion: Greek Orthodox
• Currency: Euro

Foreign investment is actively encouraged, and those willing to invest in Cyprus can be sure of a positive Government attitude.

1. Leasing of land for extended periods at favourable rates.
2. Import duty exemptions for goods concerning the project.
3. Government contribution to charter risk.
4. Contribution to brochure/advertisement expenditure up to 75%.
5. Exemption from income tax and corporation tax for a period of ten years in the case of investment in tourist accommodation units.
6. For public companies which have shareholders in excess of 50, tax exemption can be extended.
7. Annual interest and principal instalments of foreign loans enjoy a transfer guarantee.
8. Tourism establishments or hotels may deduct each year 20% of their annual foreign exchange gross earnings from taxable income.
9. Free transfer of proceeds in case of liquidity of investments.
10. Repatriation of profits without restriction or limitations.
11. Employment of foreign personnel who are not available locally.
12. Transfer of net income earned by foreign personnel is free.
13. Exemption of constriction licence fee.
14. Also deductible when calculating annual taxable profit are all travel expenses related to promotion and marketing, plus all kinds of advertisement, promotion and marketing expenses.

Investment Procedure

With reference to the registration of a company, the legal form widely used for business undertakings, both by foreign investors and by local businessmen, is the private limited company. The provisions concerning the limited company are almost identical with the UK's Company Act of 1948.

Permission is obtained from the Council of Ministers for foreign ownership of registered companies, usually within two or three months of application. The foreign ownership can be from 49% to 100%.

A business permit is also required for residents, which may be obtained from the Immigration Office.