Cyprus Property News
Cyprus | Posted:

Latest suggestions of the Cyprus Developers Association

Representatives of the Board of the Cyprus Property Developers Association, under the President of the Association, Mr. Pantelis Slim, met with President of the Democratic Rally (ΔΗΣΥ) and candidate for the Presidency of the Republic of Cyprus, Mr Nikos Anastasiadis. During the meeting there was a discussion of the problems facing the industry and the delegation presented a memorandum to Mr. Anastasiadis with specific suggestions that could help revive the Cyprus Property market, the influx of capital from Cypriot and foreign investors, increase revenue state and create new jobs.

The Developers have stressed that the economic environment today and particularly the property sector is in need for immediate and bold steps that will contribute to a faster fight against the crisis and will eventually shield the economy in view of the risks posed by political and economic uncertainty in Greece. They requested for immediate and concrete measures to help further develop the property sector. The measures should…

• assist in the inflow of new funds by Cypriot and foreign investors

• boost the capital adequacy of banks

• enhance market liquidity

• increase state revenue funds by hundreds of millions

• reducing unemployment, creating new jobs

• contribute to a reduction in property prices, enabling Cypriot citizens, especially young couples to have a roof.


Some of the Immediate Measures that were suggested:

1.1 Tax Amnesty for repatriated funds from investment, provided that they invested in the purchase of real property and an exemption from the "Occupying" property and statements relating to all land and property markets in Cyprus, filed in the Land Registry for a period of 2 years. Only from this place, the public will be able to raise hundreds of million directly as fees and charges, revenue that would otherwise be lost.

1.2 Allocation of tax deduction / credit on income tax (Cypriot individuals or companies) and / or on the capital gains tax (corporations or foreign) of 20% on the amount of investment each buyer of new residential units, offices, shops, etc. The tax discount corresponding to 20% of the total investment to be paid within 2 years from the measure, will be allocated and transferred incrementally to 5 years in the case of tenure, up to 10 years.

1.3 Shifting of Capital Gains Tax arising from the sale of real estate provided that within 6 months, the owner will proceed with the purchase of another property (as in the case of Real Property Exchange).


1.4 Accelerated depreciation of investments in the construction industry for at least five years as a key incentive for new capital investments in real property, which due to market uncertainty and high cost of funding has been frozen.

1.5 Direct provide opportunities to obtain permanent residence (permanent residency) for third country nationals who buy home in Cyprus, amounting to € 300.000 or more, if they apply and meet all other requirements. The Home Office appears to be positioned in such a positive proposal. In this regard we have prepared and available relevant bill-statement.

1.6 Reduction of capital to be introduced in Cyprus for the acquisition of citizenship by foreigners and simplifying procedures.

1.7 Utilization and coordination of public services to promote sales

Information for foreign buyers to the possibility and the advantages of obtaining permanent residence and / or nationality through the housing market and capital import to Cyprus from the Ministry of Commerce, Industry and Tourism, Investment Promotion Agency (CIPA) and CTO, in cooperation with embassies and consulates of the Republic abroad ..


2. Parallel measures

2.1 Reconfiguration and consolidation of all taxes on real estate acquisition tax and taxation of occupation, as a citizen to pay a bill once the state to collect revenue attributable to the low administrative costs.

2.2 Provide specific incentives for large development projects (eg marinas increasing the duration of the timeshare from 90 to 125 years of golf and increase the rate of construction). For routine work up to 20% increase in the rate effective for building projects started in 2012.

2.3 Direct marketing

(A) Separate legislation for jointly owned construction management separate from ownership registration and issuance of securities. Already prepared for this pending legislation relevant years now before the Ministry of Interior

(B) Final Rule Bill of swimming pools.

2.4 Promote the one stop shop to all development permits be considered by all concerned and be issued within 3 months.

2.5 Extension of the institution of self-control that this measure was implemented after years of struggles of our Association be further extended with the combined application of 2.4 above, to achieve rapid adoption of all licenses, from planning to final approval of deeds.