Chinese Investing in Cyprus Real Estate Market
CHINESE ARE MOVING TO CYPRUS
Thousands of properties have been purchased by Chinese relocating to Cyprus, with over 80% settling in Paphos. Fairly new settlers on the island, the Chinese have shown an interest in investing just under €300 million in developments in Paphos over the next few years. The Chinese are mainly interested in seaside properties and the new developments at the Marina in Limassol and the unspoilt northwest Akamas peninsula in Paphos has attracted a lot of interest from the Chinese who are looking to purchase luxury residential homes near the sea. When it comes to Commercial properties Limassol offers many high end commercial real estate that also seem to be a big draw for the Chinese.
The Chinese have played a huge role in the recovery of the islands construction sector, in Paphos alone the Chinese are mostly responsible for the 40% increase in property sales last year. Cyprus has seen a lot of money invested by the Chinese in the last couple of years. In Famagusta, specifically in Ayia Thekla, a €50 million investment in the construction of the new five star resort hotel, the Sun City Spa and Residences, has already started. The purchase of the Venus Rock Golf Resort by the Hong Kong based Glory National, is another example of Chinese investments in Cyprus, and it is deals like this that proves that the island of Cyprus still holds a lot of appeal for foreign investments. The new luxury high-rise buildings that are being built in Limassol to the value of €1.5 billion have been sold to Chinese investors. 3 buildings with up to 30 floors and close to 500 units have been sold.
With the lowest European corporate tax rates, and the new incentives that the Cypriot government has put in place, citizenship by investments has become an attractive package for the wealthy Chinese that want to relocate. A cut of 50% in transfer fees and the reduction in Value Added Tax from 19% to only 5% has also sweetened the pie. Cyprus has a lot to offer and now that the Chinese have realised the potential that exists, we will see a lot more settling in Cyprus.