Housing in Cyprus: a residence permit and the sea in return for the Moscow “kopeck piece”
If you recently said goodbye to the Moscow “kopeck piece”, selling it for 10 million rubles, Cyprus can be a great place to move and to buy real estate as an investment.
Island, the sun, the beach, the sea – almost every Russian dreams about such a life. True, many Russians agree that they could not leave, fearing a sense of nostalgia. There is a compromise option – Cyprus. Over the past few years, this resort has gathered a large Russian-speaking diaspora and in many streets the Russian language can be heard hardly more often than Greek or English.
If you recently said goodbye to the Moscow “kopeck piece”, selling it for 10 million rubles, Cyprus can be a great place to move and to buy real estate as an investment.
The real estate market in Cyprus is now “spring”. Last two years in a row, the collapse of prices, triggered by the crisis of 2013, is finally over. During this time, according to various estimates, housing on the island has fallen in price by 30-40%, and only since the beginning of 2016 prices began to show a slight increase. According to RICS, in the first half of 2017, apartments on the island went up by 4.9%, at home – by 3.3%.
Judging by the state of the economy, the “spring” is gaining strength: according toCyStat estimates, in the second quarter of 2017 the GDP of the island grew by 3.6%, and after it the real estate market is recovering. Local authorities do everything to not slow down the pace and are constantly looking for new ideas how to attract investors. For example, from January 1, 2017 in Cyprus, the annual tax on real estate is canceled.
Recently, the government has reduced 2.5 to 2 million euros the threshold of investment needed to obtain citizenship. Simply put, in order to obtain a Cypriot passport and officially become a citizen of an EU member state, you only need to invest 2 million euros in the economy of the island (this is approximately 10 Moscow “kopecks”).
There is no such amount? – no fear, there is a consolation prize: a residence permit on the island is automatically received by any home buyer. The result is obvious – for the first five months of 2017, the sales of Cypriot real estate to foreigners increased by 348% compared to May of last year, 2016, CyprusPropertyNews reports.
If you want to join the number of home buyers on the island, it is worth knowing that new buildings in Cyprus can be bought from 1 thousand to 5 thousand euros for a “square”, secondary housing is slightly cheaper; the mortgage rate is from 5%.
It is also important to consider that when buying a property in Cyprus, you need to make a deposit in 1-2% of the cost of housing, which, in case you change your mind, will not be returned. That is, the price of doubt when.
purchase an apartment of 130 thousand euros – 75-150 thousand rubles. Also planning the budget of the purchase you need to put in it 1% on top of the commission to the lawyer and 0.15-0.2% of the cost of the apartment in the form of a fee for stamp duty. This is about plus 85-100tys rubles.
If the most prestigious city for the purchase of housing in Russia is the capital, then in Cyprus it’s the other way around. Prices for housing in Nicosia are 30-40% lower than in other cities, says consultant of the department of foreign real estate company KnightFrank Ekaterina Shimanskaya.
There are several reasons for this disproportion. First, Nicosia is located almost in the center of the island, and has no access to the sea. As a consequence, the city is interesting to tourists only from a historical point of view, and here they do not stop for a long time.
Secondly, Nicosia is the capital of two states – Cyprus and the unrecognized Turkish Republic of Northern Cyprus. In the city there is a constant confrontation between the Turks and Greek Cypriots, the border between the two states runs right in the center of the city. Because of the conflict since 1974, the city does not even have an international airport.
If, despite all these obvious drawbacks, the desire to obtain the capital residence permit will outweigh, then with a budget of 10 million rubles one can choose any of a variety of options. For example, a four-room apartment in Nicosia with an area of 135 square meters can be bought for 127,000 euros (7.3 million rubles), “odnushku” in 59 “squares” – for 80 thousand euros (4.6 million rubles).
Russian Silicon Valley in Limassol.
The most popular among buyers enjoys housing is not in the capital of Cyprus, and in the second largest city – Limassolsk. Officially, he, of course, is called Limassol, but because of the abundance of Russians, local residents have already managed to come up with a new name for him.
Now in a city with a population of 200 thousand people – about 45-50 thousand, it comes from the countries of the former USSR. . Most of them are Russian IT specialists, start-ups and financial brokers. The island attracts them not only with a warm climate, but also with a flexible legal system. Many Russian companies prefer to register their head offices in Cyprus to optimize taxes and simplify work with European partners.
“In 2015 and 2016, the number of applications for Cypriot housing was approximately the same, but since the beginning of 2017, demand has doubled,” said Tranio international property expert Julia Kozhevnikova.
Thus, buying a house in Limassol can not only get a house with a view of the sea, but a large number of useful business contacts in addition. Revenues from the sale of the “Moscow kopeck piece” will be enough to become the owner of local housing. For example, a furnished two-room apartment of 50 square meters will cost 120 thousand euros (6.9 million rubles). For 181 thousand euros you can buy apartments with furniture and appliances with a footprint of 130 “squares” at 350 meters from the sea.
If the quiet life by the sea will not be fun, then the apartment in Limassol can be considered as a promising investment. The city, like the whole of Cyprus, is very popular with tourists: since the beginning of the year the island was visited by 3 million people, which is 15% higher than last year.
Studio Limassol, bought for 130 thousand euros (7.5 million rubles), you can take for 3700 rubles per day. With 70% of the workload, it will bring 77.7 thousand rubles a month and pay off within eight years.
“The prices are growing strongly in the Limassol area, especially for elite beach facilities in projects rich in infrastructure, such projects also demonstrate a solid demand for a lease that can make a solid annual net profit of 3 to 4%,” said Cybarco Development Director for Eastern Europe Ltd Sawas Pastellis.
In the other resort town of Paphos prices are lower than in Limassol. Furnished “treshka” in Paphos with an area of 70 square meters in one kilometer from the sea and the city center will cost 75 thousand euros (4.3 million rubles). In a new building in 2014 in Paphos you can find a “two-piece” with an area of 60 square meters at a special price from the developer 60 thousand euros (3.6 million rubles).
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