As the largest island in the eastern Mediterranean yet the third smallest country in the European Union (EU), Cyprus offers attractive investment opportunities through its citizenship by investment programme for those looking for a good rand hedge and solid returns.
Property investment in Cyprus is currently a prudent one to make, as investors would be entering the market at the bottom of the cycle, always the best time to invest in property. “The returns that investors who bought property at the bottom of the cycle are expected to make are always higher as they will be able to take advantage of the capital appreciation as the market gains traction and prices increase.
In order to qualify for the citizenship by investment programme, applicants will need to purchase residential or commercial property within the Republic of Cyprus to the minimum value of €2,500,000. This investment amount can be made up of multiple properties to reach the required value. In addition to making a financial investment, applicants
must also have a valid passport, have no criminal record and provide documents supporting the source and origin of the declared funds for investment.
Various application and professional fees are also payable by applicants. What is often appealing to many applicants of the citizenship by investment programme are packages
where the property that is purchased already has a lease agreement in place. Investors can expect to achieve returns of between 3% and 5% on these properties, and some developments are even providing guaranteed rental returns for a fixed period of two years, with rental returns in the region of 5.5% paid up in advance. This gives investors a prime opportunity to reinvest.
Aside from great property investment opportunities, Cyprus has a rich archaeological history and natural beauty, and can offer investors all the benefits of EU citizenship. Cyprus offers the perfect combination of lifestyle benefits and financial reward, especially considering that it also offers the lowest legitimate corporate tax rate onshore in the EU of around 12%.