INVESTORS from Russia and the Arab countries are emerging as land developers in the Cypriot real estate sector, Chairman of the Cyprus Real Estate Agents Association Marinos Kynegirou has told the Cyprus News Agency (CNA).
“For the first time in years we have several buyers whose purpose is the construction of apartments, offices and more. They buy, build and sell” Kynegirou explained.
As the Government grants the Cypriot citizenship to non–Cypriot entrepreneurs and investors upon specific criteria and terms, many start doing business in Cyprus, either by building hotels which they operate themselves or by buying plots to build apartments and sell them.
“In most cases, they buy a commercial plot to build a hotel. There is also another market that is not necessarily associated with commercial plots, but rather plots in good locations, which are bought by foreigners to build apartments to sell them” said Kynegirou.
“There are investors from Arab countries and Russia buying plots, building blocks of flats to sell to local buyers and customers coming from their own country. This did not happen in the past” he noted.
According to Kynegirou the foreign investors look for commercial plots in all the big cities of Cyprus, with Limassol being their first option.
– Cyprus News Agency
Dear Sir/Madam
Hope you are well. My father is in the process of selling a plot of land his mother gave him back in 1982. He estimates it to be worth around 5.5 million euros. Would he be exempt from paying Capital gains taxes,as it was a gift, or is he liable to be taxed, and what rate?
Many thanks for your time.
Kind Regards.
George Ierotheou
Ed: As the land was a gift to your father I believe he will have to pay Capital Gains Tax on the full sale price achieved less any allowances. The calculation can be complex, I suggest your father engages he services of an accountant to work out the precise figure.
Maybe theres a reason they are investing into Cyprus and that the market has picked up,
These guys have plenty of cash still stashed on the Island. We will end up with plenty of ghost properties.
If jobs are created and people are happy and not scammed and it is done in a controlled way then fair enough….it is a fact though there are numerous unsold units that are a blight on the landscape and for the banks books.
The average person doesn’t just wake up one morning and decide to buy a villa in Cyprus. They’ve been to the Island before and come to like it, the quality of life and the surroundings. They move for a better quality of life.
So we need to look after the tourist, it’s where the next buyer is coming from. Rip them off and they don’t return, so a quick profit is very short sighted. But how many kiosks still do this?
Another bit of spin by Cyprus. First it was the Chinese and the Germans. Now its the Arabs and Russians. In the 13 years I have been in Cyprus the only thing that has got of the ground is the Marina in Limassol.
How can these people expect to buy land, develop and sell properties when the purchasers cannot get their title deeds. I bought a property in 2005 and after years of trying the deeds are still nowhere to be seen.
Let’s not take this latest bit of news too seriously and hope the Arabs and Russian purchasers don’t get caught in the tangled web of deceit.
As Julie says, it’s madness – and greed.
But might there also be another reason for inviting the Russians, Arabs and Chinese? Could it be armoury against the Turkey in the room?
Probably loose change for some of these investors and viewing it as a long term…how long term is anyone’s guess. Today Limassol tomorrow Larnaca – if the plans are true about Larnaca becoming the biggest port in Cyprus.
And there was me thinking that they had always been Arabs.
Just another studied thing to do, why build when so many place still up for sale 1,000s of places have not sold again seems like there is no common sense is there, there madness just keep building more places stay unsold and unfinished, again this just keep going on as the greed of people,and no limits, on this, should be more control, but again it’s about power and money.