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Investments
Why invest in Cyprus
Property prices have seen significant growth over the last few years and it is widely accepted that this trend is expected to continue in the near future, with Capital Growth expected to be in the region of 12-18% per annum.
Entry into the EU in 2004 will result in a significant economic uplift, as well as a higher demand for property from both the existing and new EU member countries looking to invest in the Cyprus property market.
In order for Cyprus to adopt the Euro in 2007 it will have to decrease interest rates from the current 5.5% (Central Bank of Cyprus Base Rate) to the European Central Bank rate of 2%. This can only serve to strengthen the rising property market.
There is a significant demand for property in Cyprus from England There is also a fast growing demand from Central Europe, resulting in demand far out-stripping the supply of property in Cyprus.
The high price of property in Spain is encouraging people to consider alternative, more price effective locations such as Cyprus for their second homes, resulting in a very large upturn in the number of people selecting Cyprus, as extensively covered by the press in recent weeks.
Cyprus is now classified as a tax efficient location with numerous tax advantages including: Capital Gains Tax at 20%, Corporation Tax at 10% (Property and Contracts can be held in a Cypriot Limited Company), Pensions from abroad being subject to a flat 5% rate. There is also double taxation treaty eliminating double taxation for foreigners.
Inevitable future reunification with the Turkish inhabited north of the island is worth an estimated Euro 600m in aid from the European Union. This will lead to a huge increase in prosperity.
So with pensions and shares becoming a riskier investment property abroad has become an attractive investment prospect with the added bonus that you can spend a holiday in your investment.
Rental
Dream Villa can further help you to maximise your investment with their maintence and rental service below is a guide to the income you could receive:
Summer up to per week
2 bedroom.......3 bedroom.......4 bedroom
£400 to £500....£600 to £700....£600 to £700
Winter up to per week
2 bedroom.......3 bedroom.......4 bedroom
£150 to £200....£250 to £300....£350 to £470
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