The Cyprus Investment Program allows those who invest 2 million into Cyprus property to obtain a Cyprus Passport. The program has been successful and raised €4.8 billion from the exchange of passports for real estate under the investment program since 2013, according to a recent study by international anti-corruption watchdogs Transparency International and Global Witness.
No official statistics are held concerning the nationality of those who partake in the program, however, according to industry insiders who are involved with the process it is said that Chinese / Asian investors account for more than half of the numbers.
Carrie Law, chief executive, and director of property portal Juwai.com commented “Cyprus is a beautiful place that offers a very high quality of life, access to Europe and good real estate investment opportunities. One of the big drivers of foreign investment is the Cyprus Investment Program, which is very popular with mainland Chinese.”
Going Beyond Initial Investment
Initially when the Investment Program launched in 2013 Chinese investors purchased luxury villas that allowed them to gain the Cypriot Passport and in turn gain access to Europe.
However, in recent years a shift is taking place in what developments are receiving investment. Instead of quick buy villas in exchange for passports Chinese investors are developing substantial buildings such as hotels and residential blocks that surpass the price of the Cyprus Investment Program.
“What we are seeing is a decline in one-off buys, which originally led to concerns that they were based exclusively on the passport scheme. We are now seeing east Asian investors focusing more on investments that would require financing beyond the original sale,” commented a banking source.
Adding “The focus on China has changed. This market does not only generate consumers who purchase assets for personal use and perhaps for additional residency benefits. China now generates actual investors who are taking a position on the prospects and opportunities of Cyprus, adding further cash in their original investment, completing construction and improving the existing value proposition of the asset they buy”.
Why are Chinese People Investing in Cyprus?
Chinese investors are showing increased interest in Cyprus as they recognise promising business potential. In recent years the Cypriot economy has expanded with Cyprus becoming a regional hub of business, attracting investors and international workers alike. For those who move to Cyprus to work the positive impact of property purchases and spending can be seen in the economy.
In 2019 a steady growth of 3.1 percent is predicted with 2020 growth remaining strong at 2.7 percent. The growing economy and boost in jobs have drastically lowered unemployment rates from 8.4 percent in 2018 to 6.7 percent in 2019 with predictions of an unemployment rate of 5.9 in 2020.
Another factor that draws investment is the favourable Cyprus tax regime that is on offer. Many seize the opportunity to benefit from favourable tax, strong growing economy and an increasingly diverse and international workforce on the island.
The increase of those moving to the island to benefit from investment or work can be seen in the property sale figures. All transactions between January and May totaled €1.45 billion, resulting in an increase of 7.6 percent from the €1.35 billion recorded during the same period last year.
One property expert commented “Relatively low costs, avoidance of bureaucracy, sunny weather and short time frame – up to six months – for receiving a passport make Cyprus the best investment destination.”
It is no wonder that so many from Asia are choosing to not only invest in Cyprus but to benefit from thriving business on the island.
Why Select SkyPrime Group for your investments in Cyprus?
Our team are experts at communicating with international clients and arranging all essential legal documentation for those who wish to partake in the Cyprus Investment Program. Here at Skyprime Group, we have a range of properties including luxury seafront villas suitable for both permanent living and investments in the most sought-after locations in Cyprus.