Offices in Cyprus

Cyprus is rapidly converting from a tourist stronghold into a business centre of Europe with many offices and headquarters. About 1,000 new companies are opened here every year, and the total number of registered companies today exceeds 220,000.

International trusts and private businesses from other countries relocate to the island, and foreign investors open new legal entities, buy ready-made businesses in Cyprus or relocate their own companies. There is more than one reason for this:

  • low tax rates (12.5% ​​corporate income tax, 2.5% tax for IT companies under the IP-box programme, no taxation on foreign income, dividends, inheritance, etc.);
  • high standard of living and purchasing power of the population;
  • consistently developing economy with one of the fastest growth rates in Europe;
  • the country is a member of the European Union and the Eurozone;
  • easy company incorporation and account opening in a local bank;
  • the option to obtain permanent resident status through investment in real estate;
  • excellent living conditions: warm climate, clean environment, high-quality products.

All these conditions are favourable for doing business, so there is a constant expansion of the commercial real estate market in Cyprus.

Advantages of buying an office in Cyprus

New office buildings are being constructed all the time to meet the need of entrepreneurs for workplaces for employees. Therefore, the office market in Cyprus is large and in demand. If you want to buy an office for your company, you will have lots of premises and locations to choose from, and if you want to invest in office space, continuous demand for clients to rent your property is in store for you.

The advantage of buying an office consists not just in its profitability. When buying a property worth EUR 300,000 or more, the investor receives a residence permit in Cyprus for themselves or their entire family. No need to buy one property for this amount, you can purchase several properties with a total value of EUR 300 thousand plus VAT.

Furthermore, a critical point in optimising taxation on the island is the presence of a physical office, since the latest changes in the EU Directive indicate that parent companies and subsidiaries will be deprived of tax benefits unless they conduct actual activities in the EU and demonstrate a clear economic goal.

Types of offices in Cyprus

Today, the island is not just a tourist country but also an actively developing business centre. Nicosia and Limassol now host the headquarters of international companies, and new offices in Paphos are being opened more frequently.

It means that the world community prefers this particular island for doing business and relocation. What caused it:

  • optimisation of taxation through low tax rates;
  • no double taxation with 67 countries of the world, including Ukraine and Russia;
  • high liquidity of real estate – buy property now, and rest assured that after a while you will be able to sell it for much more;
  • high demand for business properties with an average ROI of at least 8%;
  • a wide range of real estate options for commercial purposes, both at the planning stage and ready-made business;
  • the option of acquiring a permanent residence permit through investment.

The market is represented by the following office spaces:

  • class A offices in high-rise and hi-tech buildings;
  • co-working spaces;
  • innovative hubs;
  • creative office spaces with a well-developed infrastructure for recreation;
  • Open Space offices;
  • classic offices with partitions, private offices, and conference rooms.

There is a great deal of choice, yet each of these types is in demand and meets all modern standards for building and organising a working environment using creative elements to stimulate the creative thinking of employees.

Therefore, buying an office in Cyprus has numerous advantages and brings profit. However, any success depends on the initial conditions and a fundamental approach – analysis of the market, competitor products, assessment of risks and the most realistic situations. SPM Real Estate specialists can conduct such full-fledged analysis and create a custom-tailored business model for you.

Prices for offices in Cyprus

As with any real estate, pricing for offices in Cyprus depends on many factors. For example, office premises and commercial real estate in Limassol, which is the business centre of the country, and the capital city of Nicosia will cost more than in the resort cities of Larnaca or Ayia Napa. In Paphos, prices have not yet reached their maximum, since the ancient city is still developing as a centre for a community of IT specialists and businesspeople, gradually expanding its role from a fashionable resort to a city of great opportunities.

Moreover, buying an office in a building at the planning stage or after construction at the stage of a ready-made business are two different price tags, and the second one will be higher.

Below are the main factors that affect the price of office premises:

  • location – cities can be more expensive and cheaper, and the cost also increases significantly when approaching the city centre or the centre of infrastructure facilities;
  • investment model – the more successful it is, the more expensive the property gets, because the forecast ROI, payback period, and rate of profitability are taken into account;
  • area and floor count;
  • technical specifications and equipment – whether the property has a security system, air conditioning, video surveillance, etc.;
  • quality of materials used in construction;
  • project implementation stage – planning, foundation pit, construction, finishing, or ready-made business;
  • whether it is the primary or secondary market.

For real estate prices, see our catalogue.

Which city in Cyprus has the highest demand for office buildings?

The most popular cities to buy an office:

  • Limassol. The business hub of the country, the centre of IT life, and the second-largest city on the island. Very vivid. Both premium and affordable category office centres are based here. Typically, premium-class properties are located closer to the waterfront, providing easy access to the office for both employees and visitors.
  • Nicosia. The capital and centre of business life, an excellent business environment for local and foreign companies. In business circles, it is acknowledged no less than Limassol, and therefore, prices here are also about 40% higher than in other regions of the country.
  • Paphos. Developing IT community with great prospects. Here, the best business centres are located in the city centre rather than along the seashore. Each such building meets high international standards.
  • Larnaca. It used to be the quietest resort. Now, however, it is gradually becoming a haven for foreign companies. Today, it has quite a lot of commercial buildings. This city is good for its proximity to the airport and the availability of the marina and port.

SPM Real Estate will help you choose the best city for your company or determine the profitability of any office building in each of the island's cities.

Depending on your life and business goals, our experts will help you choose the best real estate for investment.

Choosing efficient commercial real estate on the island

Efficient commercial real estate is the one that pays off quickly, is profitable, liquid, and has high margins.

Perhaps, you may want to buy a ready-made business in Cyprus, then it is quite easy to evaluate its investment efficiency since it has been operating for some time and has a stable client base. Selling a business in Cyprus can bring good profit.

If you are looking for a new investment opportunity, such as buying a hotel in Cyprus, opening a store, or buying an entire building to rent out as office premises, then you will have to spend time building a business model, which will help you understand whether your business is going to bring profits.

When choosing a location for a successful business, you need to take into account the specifics of the city and district, as this determines the demand for a particular service. Hotels and restaurants are in demand on the tourist seafront, while offices and stores should better be located in the central areas of the city.

Our specialists have been living and working on the island for over 10 years, so they will help you choose the best location for your business and build a custom-tailored business model.

Advantages of investing in real estate in Cyprus

When buying real estate, you get several advantages at once:

  • optimisation of taxes, because the country has a very mild tax climate and one of the lowest tax rates (only 12.5%);
  • high rate of return on investment — the real estate market and demand for it are growing, which enables getting a good ROI;
  • life in a safe country — the island is the 5th safest place in the world, there is virtually no crime, and even petty theft is rare;
  • high standard of living — the country is a member of the European Union and Eurozone and is governed by the British legal system, ensuring a high level of life for its residents;
  • obtaining permanent resident status for a real estate purchase of EUR 300,000 or more under the accelerated procedure (from 2 months). Permanent resident status applies to you, your spouse, your children, and your parents. Furthermore, the permanent resident status in Cyprus is also the permanent residency of the European Union with all its advantages. 7 years after obtaining the status, you can become a citizen of the country.

Other types of real estate to buy in Cyprus

In addition to offices, you can buy efficient commercial real estate in Cyprus:

  • stores;
  • shopping and business and entertainment centres;
  • cafes, restaurants;
  • hotels and aparthotels;
  • medical clinics;
  • kindergartens and schools.

You can also buy residential real estate in Cyprus, which can be used both for living and renting out and pays off well in the beach season and year-round for long-term rentals. Types of residential real estate:

  • suites or flats are part of multiunit residential compounds and most often consist of 1 to 3 bedrooms;
  • a townhouse is a multiunit residential building, where each lodging has its own entrance from the street and is joined to the neighbours' housing only by two side walls;
  • a villa is a detached house, that often has 2 floors, with its own territory, private swimming pool, and leisure area;
  • an Semi-detached villa is similar to a townhouse, yet it is different in a way that the house may have only two owners, with each flat having a separate entrance, and you only share one wall with a neighbour.

Contact SPM Real Estate and buy real estate in Cyprus to make your dream of a beautiful life come true!

SPM Real Estate is your most valuable contact in Cyprus.

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Мы, команда SPM Real Estate, предоставляем на своём сайте надёжную и исчерпывающую информацию касательно вопросов покупки и аренды жилой и коммерческой недвижимости, а также освещаем разнообразные бытовые и юридические вопросы, интересующие наших пользователей.

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