Cyprus boasts an open, free market, service-based economy with some light manufacturing. The Cypriots are among the most prosperous people in the Mediterranean region. Internationally, Cyprus promotes its geographical location as a bridge between West and East, along with its educated English-speaking population, good airline connections and telecommunications.

Now that it is a member of the EU, Cyprus offers unique opportunities for those wishing to buy property at favourable prices with excellent future investment potential.

The main language spoken in Cyprus is Greek Cypriot, but over 85% of the population speaks English. Most of the shop signs and road markings are in English.

Cyprus has always been a popular place for people wanting to retire overseas, as the country has a unique double taxation treaty. This enables UK citizens to receive their pensions and investment income in Cyprus free of UK withholding tax. This includes both private and public pensions. Insurance pensions can also be paid via the same tax-free system, and these are index-linked by reciprocal agreement.

Britons who choose to relocate in Cyprus also benefit from modern legal and accounting systems and low set-up and operating costs.

The currency

The Cypriot pound has undergone devaluation in recent times. That’s great news for those of you who are planning to buy property in Cyprus. Why? Well if you buy now, the value of your property will essentially be a lot more than what you actually paid for it. So, if you bought an off-plan property worth £120,000, devaluation means you might pay as little as about £107,000 when the purchasing process is complete.

The Cypriot pound is not traded internationally, and so can be difficult to exchange outside Cyprus. Commercial banks quote daily the exchange rates of the Cyprus pound against all the major traded foreign currencies, while the central bank quotes daily the Cyprus pound vis-à-vis the euro, the US dollar, pound sterling and other currencies.

Visitors may import foreign currency, but should declare amounts greater than the equivalent of US$1,000 to customs if they are for the purposes of purchasing property.

The banking system

The banking system in Cyprus closely follows the British pattern. The banks have many branches throughout the island which are efficient and well-equipped with the latest technology. Non-Cypriots can open foreign currency and local deposit accounts, and there are many branches of international banks. You’ll also find that major credit cards are widely accepted and that transactions and payments are simply made through your foreign deposit account.

WHY INVEST IN CYPRUS?

• Democratic system of governance.
• Free market economy.
• Strategic location at the crossroads of three continents.
• Excellent telecommunications; system-direct dialling to over 200 countries.
• Modern and efficient legal, accounting and banking services based on very similar principles to the British system.
• An extremely favourable tax regime, including 10% rate of corporation tax.
• Double tax treaties with 40 countries.
• Bilateral investment agreements with 16 countries.
• Low set-up and operating costs.