Property investment > investment

A recent report in leading British Sunday newspaper the Sunday Times entitled: “Revealed: the best places in the world for retirement,” put Cyprus firmly in the top slot for Britons seeking a more attractive destination in retirement.  So there are even more reasons to buy property in Cyprus now it seems – because after this report details why Cyprus is so appealing, a nation of British retirees will be packing their bags and moving to Cyprus in search of a new home to buy or rent!

The Cyprus investment property market has long been dominated by buyers searching for front line or well positioned property with amenities that will be appealing to the summer holiday set – but now there is a whole new market to directly and specifically target, and that’s the retirement one.

As a property investor in Cyprus you can choose to buy-in on multiple units off-plan for example, and market and resell these to arriving retirees.  Alternatively you can consider finding attractive rental property that will appeal to those on a lower budget, those who do not wish to commit to a purchase, those waiting for a home to be completed, or wintering British snowbirds - increasing numbers of whom choose to spend just the colder months in Cyprus’s milder climate.

The reasons why Cyprus is so appealing are sustainable – which is important for any investor to know and keep in mind.  For example, British retirees who can prove permanent residence in Cyprus are only taxed at 5% on their pension income, and if they take other forms of assets out of the UK and place them offshore, they can legitimately maintain a very low and healthy tax position – subject to personal status of course, and advice must be taken on a case by case basis.  These rules are not expected to change in the short term at least.

In addition to this, Cypriot property prices remain favourable compared to prices in France or Spain – or even Malta or Gibraltar.  Mortgages are available to overseas buyers, healthcare is available to British retirees now that Cyprus is in the EU – and healthcare in Cyprus is of a very high standard too...and what’s more, because Cyprus is in the EU Brits can get residency very easily.  Finally, Cyprus has no inheritance tax – it was abolished in 2000 and this is one reason some British pensioners cite as a reason for retiring to the island.  However, to benefit from this one has to prove that one has switched domicile from the UK to Cyprus.

All that proves that there is immediate and long term appeal in Cyprus for Britons in retirement, meaning a property investor eying the Cyprus Property market for a strategy can bank on the appeal of the island with a specific demographic and buy in based on what that demographic requires and is likely to want.