Cyprus GDP reaches record high in 2021
The Statistical Office of Cyprus published economic indicators for 2021: the country’s economy grew by 8,4% compared to the previous year.
The growth of the Cypriot economy is helping property sales in the country, which are up 40% in the first four months of 2022.
We will tell you how the Cyprus economy is recovering and how it affects the real estate market in the country.
In April 2022, Cyprus published a report on the economic performance of the country. The Statistical Service of Cyprus revised the data on public finances and balance of payments. New data show that the country’s GDP grew and amounted to 23.4 billion euros in 2021.
About 15% of Cyprus' GDP comes from tourism. Tourism in the country has not yet recovered from the effects of the pandemic. But other sectors of the economy went up. The recovery of the Cypriot economy began thanks to an increase in:
private consumption — by 5,9%;
export of goods and services by 15%, import — by 10,7%;
taxes on production and imports — by 16,7%;
wages in the country — by 6%;
companies' revenues by 3%.
The economy has also benefited from government support measures, such as reducing non-performing loans.
The Cypriot government hopes that tourism will be able to overcome the effects of the pandemic and recover by early 2023. Cyprus is a popular travel destination. The island has year-round sunshine, mild climate, beaches, sea, mountain scenery, and many historical and cultural attractions.
How the demand for real estate in Cyprus has grown
Sales of Cypriot real estate increased by 30% in 2021: 10,347 sales contracts were registered by the Department of Lands and Research of the country.
The number of transactions for the sale of real estate in Cyprus is also increasing at the beginning of 2022: sales increased by 40% in the first four months, compared to the same period in 2021.
938 sales contracts were registered in April 2022. This is the highest monthly figure in the last 14 years.
Prices for Cypriot housing in Cyprus fell by 5,3% in 2021. This conclusion was made by the Statistical Service of the country. Despite the fact that the price index has decreased, individual properties have increased in price. For example, apartments in modern residential complexes in Limassol on the first and second lines from the sea have risen in price by 10‑15% in 2021 compared to the previous year.
Wealthy people prefer to have housing in Cyprus for holidays in the country or for renting it out. Investors also buy property in order to obtain permanent residence in Cyprus under the investment program.
How to get permanent residence in Cyprus for the purchase of real estate
Cyprus has a program of permanent residence by investment. To become residents of Cyprus, investors buy real estate or securities of the country in the amount of €300,000.
It is allowed to buy residential or commercial property. If an investor chooses a commercial facility, he will also have to buy or rent a home in the country. Under the terms of the permanent residence program, the investor must have a permanent address of registration in Cyprus.
The investor has the right to buy one or two primary properties for a total amount of €300,000. VAT is paid separately: the standard rate is 19%, but when buying a single home for yourself, it is reduced to 5%. It is not possible to invest in resale property.
Immigrant Invest offers proven properties, including those at the excavation stage. You can buy them without commission. Our lawyers organize trips to Cyprus and accompany investors when choosing an object.
Examples of investment properties in Cyprus
Residents of Cyprus enjoy almost the same rights as citizens: they have the right to live, do business and study in the country without restrictions. Investors can also optimize taxation: in Cyprus there are no taxes on foreign income and inheritance, low rates of property and income tax. The corporate tax rate in the country is one of the lowest in Europe — 12,5%.
After five years, the investor has the right to apply for citizenship. The Cypriot passport opens up even more opportunities for living in the country and traveling around the world: Cypriots visit 176 countries of the world without a visa, including the EU states, the UK, Japan and Singapore.
Immigrant Invest is a licensed agent of the permanent residence program in Cyprus for investment. If you want to become a resident of Cyprus and buy property in the country, please contact investment program experts for advice.