Buy to Let Investment Benefits & Cyprus Property
When Cyprus entered the security of the EU (European Union) in May 2004, real estate property prices accelerated their financial returns year on year. This fuelled popularity within buy to let investment portfolios, due to the high demand from Europe, mainly the UK, proving a secure investment funnel and capital appreciation.
Cyprus Property Buy-to-Let Investments:
Depending on your investment return requirement, buy to let property offers either long-term gains to increase your pension and income with excellent capital appreciation, or short-term gains to maximize capital appreciation for the next buy to let property purchase.
Tax Residency and Domicile in Cyprus for UK Buy to Let Investors and the Advantages:
Foreign Investment: Buy to Let property investments become ‘Foreign Investments' with no Capital Gains Tax
No Inheritance Tax: Being a permanent resident in Cyprus, you have no inheritance tax, but this has other implications, requiring professional advice. Contact Us
Capital Sums: No tax on capital sums from approved funds, i.e. pensions
Profits of Sale: No tax on profits of sale of private companies
Overseas Dividends: No tax on overseas dividends and interest
Sale of UK Properties: No tax on profits from the sale of UK properties, including investment properties
Equities Exempt: Profit from the sale of equities exempt from capital gains tax
Lump Sums: No tax on lump sums on retirement
Retirement: Income taxed at 5%
Cyprus Rental Market:
The expected ROI (return on investment) for the buy-to-let Cyprus property market is averaging 7% gross yield. With professional management, marketing and advertising, this will increase up to 10%. After deduction of management costs, services, repairs and maintenance expenses, this will provide a net return of 5%-7%. We provide rental management services throughout Cyprus although we advise all our clients to use other property managements companies to promote their rental property. Why? To expose your investments to other web sites to increase rental occupancy levels, although only one web site may hold the rental calendar, with the other web sites reporting bookings, etc.
Refinancing in Cyprus:
This is always an important issue for the serious investor to release equity for the next buy-to-let Cyprus property investment. Cyprus does not have any problems to release equity and our local banks will advise accordingly.
Reselling your Investment in Cyprus:
Cyprus has 50,000 expatriates living here full time, enjoying the gracious laid-back life style, with over 300 days of sunshine each year. The Cyprus real estate market is growing rapidly, providing an excellent resale environment with clients looking for quality homes in the best locations. However, with the present economic world crisis, great care is needed in all investment considerations.
Cyprus Investment Locations
Paphos has historically provided excellent rental returns on buy to let properties and continues to do so, with an excellent set of rental Management Companies available.
Kato Pafos, Tomb of the Kings, Coral Bay, Sea Caves Tala, Peyia and anywhere on or near the three golf courses offers the best investment location. Latchi and Polis are just pure nature and are a bit of a secret but well worth looking at. Because they are so far behind the market in every sense, prices can only go up and up.
Cosmopolitan Limassol has great opportunities on the beachfront in the East Beach area, better known as the tourist area. Limassol has developed in to a community for all, and as such, will continue to grow from within and expanding all directions.
Larnaca is up and coming:
With dramatic property sales being concluded on and around the new golf course, a new airport is under way with $2 billion investment in roads, telecommunications; and a new marina. Larnaca is a dark horse in the stable, ready to take off.
Ayia Napa, Protaras and Paralimni:
Offer the best beaches, a quiet location with beachfront properties providing the best returns for buy-to-let. There are many excellent property management companies in Ayia Napa areas with online account checking for each client and password login facilities.
Nicosia is a bit of a dark horse with most investors forgetting the capital of Cyprus in favour of the beach towns. Boasting the largest population, Nicosia is the headquarters for government, banking, businesses and universities and is the most dynamic business centre in Cyprus!