Interest in the sunny island of Cyprus is surging in 2019, helped by its friendly tax and visa laws. We take a closer look and wave some inviting property there under your eyes!

Cyprus is enjoying a hike in foreign property-buyers, with figures from its Department of Land and Surveys indicating the country’s property market has hit an 11-year high this year.

The island’s year-round sunshine, friendly people and laid-back Mediterranean resorts and villages have been popular with British and other foreign buyers for decades. More recently Cyprus’s citizenship and residency for investment (“golden visa”) programme has added to this lifestyle appeal. Pegged to this, the Cypriot Government has created favourable conditions for companies to operate, which is helping to attract international businesses and those who run them.

Under Cyprus’s golden visa programme, qualifying foreign buyers are granted residency when they purchase property worth at least €300,000. In addition, non-EU citizens who invest €2 million qualify for a Cyprus citizenship, allowing them to travel, work and live freely within the EU and Schengen zone.

The scheme has become increasingly popular, attracting an estimated €4 billion worth of investment since 2013 and contributing a 20 per cent increase in foreign buying activity, compared to this time last year. Foreign purchasers made up 44.6 per cent of all property sales in Cyprus between January and May 2019. Of these properties, 71 per cent were purchased by non-EU nationals and the remaining 29 per cent by EU nationals.

Cyprus’s tax system is another carrot to international buyers coming to live or retire there. In particular, income tax rates are highly attractive, with the first €19,500 of earned annual income being tax-free and foreign pensions taxed at only five per cent above a low threshold. For companies, corporation tax there is levied at just 12.5 per cent. In addition, estate duty has been abolished since January 2000.

Cyprus’ strategic location between Europe, Africa and the Middle East, (Cyprus is only a four-hour flight from the UK or Russia, three from Dubai and only an hour from neighbouring Egypt, Jordan, Israel or Lebanon), has cemented it as a ‘centre of excellence’ for international business. Traditional sectors, such as shipping, tourism, banking, financial and professional services, have been the key driving forces behind the island’s economy for years, while new sectors, such as energy, investment funds, development, education and wellness tourism, are giving the economy an exciting new edge.

To support this rise in foreign investors, property developers are focusing on prime new-build developments. Limassol Marina was the first luxury project to attract super-yacht owners, and the wider area has since become a hot spot for wealthy homeowners. More than a dozen new high-rise residential buildings are being constructed.

The Paphos region remains a very popular choice for property-hunters in Cyprus, especially those from the UK, including retirees. The legendary birthplace of the Goddess Aphrodite, the resort of Paphos and surrounding area includes stunning, protected coastline, UNESCO World Heritage Sites, unspoilt traditional villages, championship golf courses and lively touristy beach areas.

In Paphos, property ranges from cheerful beach apartments near the resort’s beach and centre to luxury million-euro-plus villas in stunning locations, especially around Coral Bay with its Blue Flag beach – a notable new development is the Armonia Beach Villas development. The Polis area, with its unspoilt natural scenery, is also popular, offering a more peaceful environment.