The real estate sector is a critical component of the Cypriot economy, contributing to around 20% of the country’s GDP. The recent legal changes in the real estate framework have had a significant impact on the sector and the economy as a whole. In this blog, we will discuss how the above-mentioned changes are changing the economy in Cyprus.
The new law on real estate agents and the strengthening of the AML framework have enhanced transparency in the real estate sector. The new laws require real estate agents and developers to maintain detailed records of their transactions and conduct due diligence on their clients. This has increased investor confidence and encouraged more foreign investment in the sector.
The amendments to the Immovable Property Tax Law and the introduction of the Golden Visa Scheme have made Cyprus a more attractive destination for foreign investors. The tax-free threshold and the reduced tax rates have made real estate investment more profitable for property owners. The Golden Visa Scheme, on the other hand, offers residency and citizenship to non-EU investors, providing an added incentive to invest in the sector.
The Town Planning Amnesty has provided property owners with the opportunity to legalize unauthorized buildings and structures. This has helped to regularize the real estate market and increase the supply of legal properties for sale. The legalization process has also generated additional revenue for the government in the form of fines and fees.
The real estate sector is a significant employer in Cyprus, and the recent changes have created new job opportunities. The introduction of the Golden Visa Scheme has led to an increase in demand for real estate services, which has resulted in the creation of new jobs in the sector. The regularization of unauthorized buildings has also created new jobs in construction and related industries.
The recent legal changes in the real estate framework have had a positive impact on the Cypriot economy. The increased transparency and investor confidence, attraction of foreign investment, legalization of unauthorized buildings, and job creation have all contributed to the growth of the sector and the economy as a whole. The changes are expected to continue to attract foreign investment and promote sustainable economic growth in the future.