An Introduction to Buying a Holiday Home in Cyprus
Many people buy a holiday home in Cyprus with a view to living there permanently or semi-permanently when they retire due to the many benefits of the classic, slow-paced Mediterranean lifestyle.
Traditionally, Cyprus has been a sought after location for overseas buyers looking for a holiday home or secondary investment property.
The Cyprus property market has regained stability after a downturn caused by the global recession. Cyprus property investment can provide outstanding value and, in comparison to other EU countries can give foreign investors a safe ROI or return on investment.
The market on the island is buoyed by the government’s increased investment in infrastructure and the five new approved marinas and golf courses that are currently being developed.
Cyprus property developers have a large inventory of sites and builds available in various locations. There are many apartments, villas and houses all over the island and both re-sale and new-build properties are available and can provide equally good value for investment.
- If the intention is to use the property for holiday rental income then it’s important that it be located close to the tourist centres.
- Work with a reputable estate agent or Service Provider that has a working knowledge of the tourist industry and the towns that are most attractive for the owners of rental property.
- When investing in property for the purpose to rent or lease, your next step will be to secure a trustworthy and dependable property management company that will provide all required services such as completion of the necessary documentation and repair of any furnishings, including general tenant management.
For more information on the buying procedure in Cyprus, click here.
Property tax is due annually and the rate varies from area to area, and varies according to the property type: land, a residential house, commercial property etc. As taxable gain is calculated as gross selling price of the property, minus any acquisition and improvement costs in Cyprus; property owners must pay CGT or capital gains tax at a rate of 20%.The Cyprus taxation system has income tax for retirees living in Cyprus at a fixed, favourable flat rate of 5%.
For more information on property tax or buying a second home, contact us, we have local property experts that can assist you.