What you must know when considering commercial property in Cyprus

Known as the "island of Love" Cyprus is one of those places that offer a whole lot to love people who are warm and welcoming, a climate that’s mild and sun-drenched in the winter, hot and dry in the summer, and many unique opportunities to purchase commercial properties of exceptional value.

The quality of life on this beautiful island is amazing and draws people from all over the world. The standard of living, access to first-rate health care and education, a low crime rate and almost complete lack of pollution make Cyprus a sought-after place to live and work.

About the island of Cyprus

As the third largest island (after Sicily and Sardinia) in the Mediterranean Sea, (measuring over 3500 square miles) this picture-perfect place boasts clean, sandy beaches and rugged coves surrounding a central plain that reaches to meet pine clad mountains. The capital city, Nicosia is located almost at the center of the island, and is the seat of government and main business area. Nicosia remains the only divided capital city left in the world.

About 750,000 people live on this sun-drenched island, with Greeks making up nearly 75% of the population and living mainly in the south. Less than 20% of the people are Turkish Muslims who live mostly in the northern part of the island that remains under Turkish control, and is known as The Turkish Republic of Northern Cyprus (TRNC). Recognized officially only by Turkey, this region has suffered in terms of foreign investment. As a result, the northern economy relies heavily on agriculture and government service.

Foreign investment in the Republic of Cyprus to the south has been much more robust. It is this area that offers you the most viable options for acquiring a top performing commercial property.

A growing economy based on tourism and services

As the major cruising center in the region, Cyprus is a port of call for many of the international cruise lines. Tourism is a key part of the local economy as are financial services. And while Greek and Turkish are the official languages in Cyprus, English is also widely spoken.

Despite some instability during the 1990’s due to the politics of the region, the economy grew a healthy 3.7% each year in 2004 and 2005, far better than the EU average. While the southern part of Cyprus is on target to adopt the euro in January 2008, at present the currency is the Cyprus Pound (CYP), and in the Turkish occupied area the currency is the Turkish New Lira (YTL).
The Republic of Cyprus is a member of the United Nations and U.N. Agencies as well as the Council of Europe and other key international organizations. Cyprus joined the European Union (EU) on May 1st 2004.

Acquiring commercial property has become easier

The regulations for starting or owning your own business have been relaxed in the years since Cyprus joined the European Union (EU), and foreign nationals may now own a commercial property without having to have a Cypriot partner. This has broadened the opportunities for lots of smart businesspeople, and they’ve moved to make investments in the many promising areas of the island.

Before you move forward in your search for commercial property in Cyprus, you’ll want to research the country, it’s history and customs. Contact some local realtors to learn all you can. In the age of the Internet, it’s now easier than ever to see a photo of a potential property and learn more about it in just a few clicks. At some point you’ll want to schedule a visit of at least several days to take a look, first hand, at potential commercial properties.

The process of purchasing and registering your commercial property will also go more smoothly if you use a local advocate/solicitor. These professionals know the way things are done and can help you navigate an unfamiliar process quickly and easily.

Be aware of the politics involved, not ruled by them

As we’ve said, there are two distinct areas of the island — the southern portion known officially as the Republic of Cyprus, and the northern Turkish administered area. The southern two-thirds of the island functions as an independent sovereign Republic with a presidential system of government and market economy. This came as the result of a constitution written in 1960 after independence from the British had been won.

The Turkish presence on the island is the result of a still-unresolved dispute, known as the "Cyprus Problem" that has its roots back in July 1974 when Turkey used an aborted coup as a reason to invade the island. Thirty-eight percent of the island continues to be occupied by the Turks, including one half of the capital city. At present, over 30,000 Turkish troops are stationed in the occupied area.

In addition, two smaller areas are also recognized. The United Nations controlled Green Line keeps the north and the south separated. There are also two British Base Areas that have been occupied since the time of the transition of Cyprus from colony to independent state.

Before you invest in a commercial property

Beginning a business venture, any venture, is a challenge. When considering one in a beautiful, but still divided, country like Cyprus, there are far more than the usual financial considerations to take into account. This isn’t a decision to be made lightly… but rather after some careful fact-finding. You’ll want to take the time to talk with those in the know, both locally and online… and spend more than one idyllic vacation in this most beautiful of places.

If after all this, you’re still keen on finding just the right commercial property in Cyprus, don’t let anything stop you. This warm, beautiful island offers a wonderful way of life, a comfortable standard of living and so much more to those lucky enough to live and work here.