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.
