Property News

Russian buyers help keep Cyprus property market buoyant

Russians are flocking to Cyprus for a number of reasons but one of the important repercussions is that it is helping to shield the island from the worst current world recession.

The island has always been much loved by the British and there is a very strong ex pat community lured not only by the Mediterranean island lifestyle and exceptionally good weather but also combined with low taxes.

However, it is the advent of the Russian invasion over the last two years that helps sustain a strong local property market.

Sam Orgill, MD of ProACT Partnership, experts in tax issues, investment and legal matters for buyers of properties in Cyprus says,” Back in the 90’s many Russians established shipping businesses in Limassol on the back of favourable international business tax treatments by Cyprus. Despite joining the EU, an affordable tax regime continues to make Cyprus attractive to Russians.

In addition, the country appeals to their character; the Cypriots have a long history with the Russians linked by religion and location. If you think about it, the Russians until recent years never knew beautiful places such as Cyprus existed with sun, the friendly village life, warm seas, pretty beaches and a totally different lifestyle. Now they have found the island and they can afford it, there is almost a land grab situation. With the major 1000 berth marina being built at Coral Bay, Paphos, Russian buyers are flocking.

As a result Cyprus property prices have held up this year and led the world in growth rates over 12% year to date.”

The Russians like the luxury villas which they are buying for holiday homes and for residency. Generally they seek sea and mountain views. After all, Cyprus is an EU country at the Eastern end of the Mediterranean making it a perfect position for those wanting to do business both in the East and West.

The Russians are also investing heavily in some major development sites too, ensuring the stability of the island and encouraging high end buyers from around the world.

Direct flights from Moscow and St Petersburg to the new expanding Paphos airport help fuel the high interest but it is felt that the tax advantages in Cyprus play a major role. Many properties in the Limassol area are being purchased for offices .In Paphos the areas is chosen more as holiday homes or as their main residence.

After a busy start to the year and slow summer the Cyprus market has kicked on at the high end of the market.

Local British owned developer Aristo report strong demand for the euro 1 million plus property.

Sam says ‘The low taxes in Cyprus, Mediterranean culture, EU location are kicking in transforming Cyprus’ Cyprus remains true to its Greek Cypriot roots but now the Russian community is almost as large as the British. Coupled with a growing in flux of Scandinavian, Germany and French expats, Cyprus is becoming a cosmopolitan international location.

“The British buyer, although not going to snap up a bargain, does nevertheless know that in essence his purchase property should hold its value, that the country is stable and that the tax breaks are exceptional. In fact Cyprus offers the lowest tax on pension income than anywhere else in the world”.