Making the decision about buying commercial property is an important step in generating additional income. Cyprus is one of the most promising places to invest in real estate due to its active economic growth. Particularly high demand for it is observed in sectors such as retail, hospitality, and tourism.
In this article, we will tell you about the advantages of commercial real estate investment and why it might interest you as an entrepreneur.
Is Buying Commercial Property in Cyprus Beneficial?
The stable economic growth of this Mediterranean island is one of the main advantages for property investors. This is also because Cyprus is very popular as a resort. Over 2 million tourists come here annually, renting accommodation and actively visiting establishments, entertainment complexes, and shops.
However, it’s not just the tourism sector that’s thriving here; in recent years, the country has become a major business hub. This is evidenced by the large number of modern headquarters and well-equipped offices of technical, financial companies, and leading startups.
Let’s discuss the other benefits of purchasing local commercial real estate in more detail.
Low Tax Rates
An attractive feature of the island for entrepreneurs is the corporate tax rate of 12.5%. It is one of the lowest in the EU. Income from the sale of bonds, stocks, and other financial instruments, as well as dividends in foreign currencies, are not subject to tax. This also applies to income from foreign permanent establishments.
Benefits of EU Membership
Since Cyprus is an EU member, it uses the euro as its official currency and has access to the international market and customs union. It’s worth mentioning the opportunity to travel between European countries visa-free.
Moreover, if you buy commercial property in Cyprus worth €300,000 or more, you can apply for residency and citizenship. This service is available to members of your family as well!
Qualified Professionals
Talented and highly educated workers in Cyprus are a valuable resource for foreign entrepreneurs. The professionalism and English language proficiency of employees facilitate communication with foreign clients, colleagues, and partners. This ensures the integration of international business into the island’s business sphere.
Linguistic advantage guarantees that companies can count on competent employees in almost any industry. This is supported by an efficient education system in Cyprus. International companies can easily find and hire expert workers, immediately integrate them into the workflow, and easily overcome the challenges of the global market.
Developed Infrastructure
Many areas of Cyprus are potentially beneficial for doing business, including when it comes to commercial property for sale. The island is characterized by constant development and improvement of the logistics, transportation, and telecommunications sectors due to substantial investments. Well-thought-out infrastructure ensures easy business management and comfortable living.
Transit systems facilitate movement throughout the island. Two deep-water seaports in Limassol and Larnaca, along with two international airports, connect the island with other countries of the world. This is why investing in real estate commercial is so popular here.
High Standard of Living
The educational system, along with healthcare, is one of the best in the country. A wide choice of public and private schools and universities recognized by international educational ratings and scientific organizations offer programs in multiple languages.
The social security system is noteworthy too. Local authorities have introduced insurance that covers many risks associated with working conditions, health, and pensions. Cyprus’ national healthcare system offers a variety of medical services completely free of charge to all island residents.
Features of Cypriot Commercial Real Estate
The most popular investments in Cyprus are buildings for grocery stores, cafes, beauty salons, and pharmacies. New areas and suburban zones, which are rapidly developing, are expanding their infrastructure by constructing various shops, clinics, sports studios, and children’s centers. It is particularly advantageous to purchase property in areas with high foot traffic and high population density.
Interesting Fact: Cyprus is one of the best locations for relocating IT companies. As early as 2022, there was an increase in demand for office buildings and spaces, which attracted developers to invest in commercial real estate construction. Rental rates have also increased. Therefore, investing in office-type buildings can provide a steady income in this growing market.
What to Consider When Choosing Real Estate in Cyprus?
The island’s commercial real estate market boasts a variety of premises of any configuration and layout suitable for setting up offices, warehouses, entertainment complexes, and retail spaces.
Limassol – a city in the south of the island – attracts investors with its location. It is not only a port center but also the “business heart” of Cyprus, as it is home to the headquarters of major corporations.
The Troodos region in the mountains should also be noted. Picturesque landscapes and unique natural surroundings have made this location popular for summer hiking. In winter, it is a magnificent ski resort. Implementing tourism projects with an emphasis on environmental friendliness is advantageous here. Nicosia, the capital, the resorts of Ayia Napa, Paphos, and the industrial districts of Larnaca are also popular in terms of income generation.
Investors predominantly choose multifunctional buildings that include both residential and commercial properties. It is necessary to consider not only the geographic location of the properties but also the most advantageous stage of construction.
Based on this, investment in buildings at such stages of development is available:
- Fully constructed buildings ready for purchase.
- Premises in the process of finishing.
- Real estate in the early stages of construction.
- Properties approved for development but in the pre-construction phase (off-plan).
Investing in real estate at the initial stages offers the opportunity to save approximately 30% of its final cost. This is beneficial if you have the means and time to wait for the completion of the property construction and income from its rental.
Conclusion
Cyprus is a wonderful location suitable for peaceful living and doing business. Among the main advantages of investing in commercial properties are low tax rates, the possibility of obtaining citizenship, developing infrastructure, and a high standard of living.
Moreover, local assets are liquid, meaning they can be both rented out and resold. Resorts and major cities can bring investors up to 10% annual returns.
If you also wish to join their ranks, reach out to experts at one of the well-known commercial real estate companies, Anisad! We will gladly assist you in choosing and advising on the most profitable investment options.
