Why Buy Investment Real Estate In Cyprus

T he twenty-first century         5%, interest earned on foreign     has heralded a gold-rush of     capital imported into Cyprus is    vacation property               tax exempt, and investment income  purchases. For personal use or       remitted to Cyprus by foreign      for investment, people from           nations is taxed at a flat rate    Western countries are buying up       of 5%. Even the corporate tax      property in the Caribbean, the        rate is a flat 10%. Cyprus also    Mediterranean, and other choice       has signed double taxation         locations in warmer climates.         agreements with many countries,                                          including the United Kingdom. A   One island that is seeing renewed     Capital Gains Tax of 20% is        interest is Cyprus. Having           payable on the sale of immovable   recently become a member of the       property in Cyprus, but no         European Community, Cyprus            capital gains tax is payable on    properties are also in demand         gains from investments. Personal   because English is widely spoken      income tax rates range form 0 -    as a second language.                30%.                                                                                                        Being part of the EEC is expected     Interestingly, there is            to be a precursor to increased        increasing demand for Cyprus       property prices, making Cyprus a      properties from non-traditional    good investment for real estate.      sources, including the Middle      The stable and growing economy is     East, Russia and its former        expected to continue as a result.     states and United States, as                                             well.                              Cyprus is almost like a tax haven                                        within the European Community.        According to Glen Young of         There is no inheritance tax or        http://www.SunSeaker.com , the     gift tax, pensions from abroad        island has the twin benefits of    are taxed at a flat rate of just      being popular for retirees and     tourists. Retirees buy property      Unlike in many other sunshine      in Cyprus for their own use,          destinations, the legal system in  largely to bask in the warm           Cyprus is mostly based on the      Mediterranean sun and escape the      British legal system and is        snow and cold winds of winter.        designed to safeguard the          The attraction of Cyprus as a         property purchaser. This makes it  second home (or a new first home)     particularly attractive to UK      is helped by a skilled work           investors. Once the contract of   force, relatively affordable          sale is signed and a deposit is    prices and a friendly, welcoming      paid, the contract is registered   population.                           at the land registry office. This                                        procedure protects the             But Cyprus is also a popular          purchaser's ownership rights       tourist destination, with             until the title deeds are issued   frequent inexpensive flights from     and transferred to his or her      major European cities. Visitors       name. The contract in the hands    need quality accommodation, such      of the Land Registry cannot be     as villas and apartments. This       withdrawn by anyone, and           makes Cyprus property a good          therefore the property cannot be   investment, earning an income         leased, sold, transferred or       until the owner wants to sell and     mortgaged. Only the purchaser      cash in...or until the owner          himself can alter this status.     decides to retire and use the                                            property for his own purposes.        With so much going for it, even                                          Cyprus is not perfect. Sometimes   Of course, over 320 days of           it does take patience to buy       sunshine certainly don't hurt         property in Cyprus. As with many  land values on this Mediterranean     sunny locations, the bureaucrats   island.                               don't always see the need to rush                                        and paperwork can take longer      than an eager buyer would             one that requires only 30% to be   sometimes like.                      paid down over the period of                                             construction, making financing     In the case of buying property        affordable to average investors.   "off-plan", it can often take a                                          couple years for the development      With a little planning and         to be completed...meaning that        patience, property in Cyprus can   the buyer might need some bridge      be easy to obtain and well worth   financing until the property can      the investment. And with          be let and income starts rolling      retirement on its way sooner or    in. Mortgages, usually up to         later, it's never too early to     75%, are readily available, and       stake out your favorite beach.     the wise investor will look for                                       About the Author: David Leonhardt runs a freelance writer agency: http://www.seo-writer.net/freelance/writer.html SunSeaker Properties: http://www.SunSeaker.com/ Read more about Cyprus properties: http://www.SunSeaker.com/cyprus/index.asp Read more articles by: David Leonhardt Article Source: www.iSnare.com