1)The entrance to the program "Citizenship for investment" is reduced
The main thing is that the entrance investment amount from € 2.5 million was reduced to € 2 million. And Investor is entitled to sell its investments after 3 years, however he must hold possession of at least 500 000 Euro worth of residential property.
Where can you invest? In all types of real estate - residential, commercial, land for building etc.
2)Passports can be issued for parents from both sides
Previously, only husband, wife and all financially dependent children up to the age of 28 could receive a Citizenship. From 2016 applicant’s parents are also entitled to apply for Cyprus citizenship by exception provided that they own a lifetime residence of at least €500.000 (excluding VAT).
3)Tax residents "Non dom" do not pay taxes on global income
In 2015, the status of "non-domiciled tax resident" was introduced in Cyprus by analogy with Great Britain. Therefore the tax payable by a Cyprus resident non-dom on interest income will be zero.
This privilege has already attracted a lot of wealthy foreigners from around the world, including Russia, CIS countries, China, Arab countries, and made Cyprus a very attractive jurisdiction for tax planning of individuals' incomes.
4)Annual Property Tax was cancelled
From 1st of January, 2017, owners of all types of properties – apartments, villas, townhouses – do not have to pay Immovable Property Tax (IPT).
Previously, annual taxes in Cyprus were charged on the value of real estate in 1980.
5)The privilege on payment "Transfer fee" was prolonged
Another reason to invest in Cyprus property is the benefit of the Property Transfer Fees, which the buyer pays when making a transaction.
It was introduced in 2015. It was assumed that the preferential tax regime will remain in effect until December 31, 2016, but in July 2016 the authorities decided to extend it.
Therefore, in 2017 if you are buying a real estate where VAT is paid (new buildings), Transfer Fee is not charged at all, and when buying real estate in the secondary market where there is no VAT, the transfer of ownership tax is reduced by half from 8% to 4%.
6)The real estate market pushed off from the "bottom"
Since 2009, the Cyprus property market was in crisis. During this time, prices fell by 30-40%. The decline affected all classes of real estate (from the cheapest to the premium) and all regions of the island.
In 2016, for the first time in many years, Cyprus registered a rise in prices both for residential and commercial properties. Square meter has not yet begun to increase rapidly – for the year it added only a couple of percent. But judging by the dynamics of the number of transactions – there is a jump of 43% compared to 2015.
The best price-quality ratio for the buyer will be seen in 2017, and then prices will gradually return to the pre-crisis level.
7)Foreign demand and quality of construction are growing
Foreign buyers are extremely important for Cyprus. During the boom in the market, for example, in 2007, foreigners bought 11,000 objects per year, even more than the local residents. During the crisis years, the activity of foreign investors decreased, but in 2016 – again, for the first time in a long time period – again began to grow.
Therefore, now in Cyprus we can see a large selection of high-quality real estate, and, in different price segments – from € 150 000 to several millions.
Более подробную информацию о налогах и сборах при покупке недвижимости на Кипре вы можете получить на нашей странице.
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