Real Estate Investor Magazine South Africa March 2014 | Page 54

CYPRUS

ALEXANDRA BURGER

Where Europe meets the East
Cyprus, a Mediterranean centre for international business

C

yprus (now the Republic of Cyprus)
is, according to Greek mythology, the
birthplace of the Goddess Aphrodite.
Visitors f lock to Cy pr us for its idyl l ic
Mediterranean charm, its natural beauty and
its fascinating history which spans more than
10,000 years through Ancient civilisations to
medieval knights. The Phoenicians settled in
Cyprus, The Assyrians, Egyptians and Persians
all laid claim. Cyprus was part of Alexander
the Great’s empire and then the East Roman
Empire Byzantium. Richard the Lionheart’s
Castle stands in good form in the town square
and the Knights Templar were followed by the
Venetians, ottomans and the British ruled until
1960 and still have a naval base on the island.
Strategically situated at the crossroads of
Europe, the middle East and Africa, it has
served as a major trade route from ancient times
and today it is an internationally renowned
shipping centre, home to some of the world’s
leading names in the global shipping industry.
Despite the major set backs in the banking
system in 2013, the islands financial services
industry is still robust. The number of Cypriot
issuers f loating on the New York Stock
Exchange, the LSE, Irish, and Hong Kong
exchanges is steadily increasing .
Cyprus is the third largest island in the
Mediterranean and has been a member of the
Eurozone since 1 January 2008. The Republic
has a streamlined tax system which has made
it an attractive base for international trading
businesses. Cyprus has one of the lowest tax

52

March 2014 SA Real Estate Investor

rates in the EU set at a f lat rate of 12.5%, a
network of double tax treaties with 46 countries
and zero withholding taxes on any dividends,
interest or royalties paid to non-residents. It has
an aircraft register and a notable intellectual
property regime.
Foreigners invest in the Republic for a number
of reasons including the natural beauty, lifestyle
benefits and situation, the island provides good
access to Europe, the East and Africa. Many
major airlines fly to Cyprus and there are direct
flights to the United Kingdom all year round. It
can thus provide a home with attractive lifestyle
and a good place to establish an international
business due to the advantageous tax system
language, and common law legal system. The
island’s infrastructure is excellent including the
roads, telecommunications, power supply and
airports at either sides of the island.

“There is a wide range
of properties to suit all
tastes and bank balances”

The oil reserves in the Levantine basin,
estimated at 3.5 trillion cubic meters, are
expected to propel the island into a new era
of prosperity. The exploration and production
memorandum has already been agreed between
the USA, Israel and Cyprus.
There is a wide range of properties to suit
all tastes and bank balances from spacious
modern apartments to family homes, stylish
SUBSCRIBE

villas and even plots of land for development.
Dream holiday homes in Paphos, limassol,
Larnaca, Famagusta and Nicosia are marketed
internationally. For the young at heart, Aiya
Napa is the party city which rivals Ibiza but
the island is also home to many expats from
Northern European countries moving to warmer
climes and even as a weekend breakaway for
people working in the middle east.
Visitors to Cyprus are never disappointed
and there are over one million British tourists
who visit the island along with Europeans,
Scandinavians, and travellers from Middle East
and Russia. The island boasts a very low crime
rate and is world renowned for its yachting
marinas and pristine golf courses.

Property investment in Cyprus
The Cypriot property market boomed till 2007
with investors from Europe, Scandinavia, Russia
and the Middle East but since then the prices
have fallen on average between 15- 21% in some
areas, making this possibly an opportune time
to invest. Despite the recession there are new
developments on the island appealing to affluent
investors and in Paphos in particular.
There are a number of distinctly different
areas which attract foreign buyers. Paphos has
been the top choice in recent years and is the
fastest growing area on the island and, even
with the slump in property prices since 2007,
property values have held up reasonably well.
The area boasts a rich mélange of magnificent
scenery, historical treasures, marinas or
village, The prices range from EU70 000 for
www.reimag.co.za