Shops in Cyprus: Features and Attractiveness

It is enough to optimize business taxes and obtain a residence permit through real estate to open a shop in Cyprus. This is good if you want to start your own business and manage the store or get a stable rental income by renting your store to another person.

So what kind of business to open in Cyprus? Personal running a retail outlet or renting it out? For the last few years, the island has been actively developing and transforming, economic growth is anticipated, and real estate prices are increasing yearly. Buying property in Cyprus now is liquid because, in a few years, it will rise in price even more, allowing it to sell at a profit. Therefore, owning a business on the island seems more attractive than renting it for a long time.

Buying a shop in Cyprus is a property investment with a high rate of return. However, the success of any business depends on many factors, including the location, the target audience, and the products offered, which must be of interest to those customers who circulate in the area of the business.

Why it is worth starting a business in Cyprus and buying a shop, a retail outlet, a chain, or a mall:

  • low tax rates (12.5% corporate tax, no taxation on foreign income, dividends, inheritance, etc.);
  • high standard of living and purchasing power of the population;
  • steadily growing economy with one of the fastest growth rates in Europe;
  • Joining the European Union and Eurozone;
  • the possibility of obtaining permanent residency for an investment in real estate;
  • excellent living conditions: warm climate, clean environment, quality products.

All these conditions are attractive for conducting and optimizing business, so foreign investors prefer to buy commercial real estate in Cyprus because of the mild tax climate.

What kind of shop is in demand in Cyprus?

Every year about 4 million tourists fly to Cyprus, one of the world's highest per capita tourist numbers. When arriving on vacation, each traveler wants quality and comprehensive service, food, traditional Cypriot curiosities, and souvenirs for relatives in other countries. Therefore, the store demand is relatively high throughout the year and significantly increases during the beach season, which lasts from May to October.

Also, more and more foreign companies are relocating to the island yearly, foreign investors are opening businesses, taking employees, and many wealthy people are buying homes and moving their entire families to the sunny island. All this flow increases the need for the availability of stores and a variety of goods.

What kind of shop can I open in Cyprus?

  • The volume of business. One small store, a large retail chain, or a shopping center. With competent construction of the business strategy, each of these objects will successfully bring profit.
  • The stage of business development. Buy «raw» premises, where you will build a business from scratch, or purchase a ready-made business with well-established processes and working staff.
  • Type of store. Traditional local stores familiar with the native's products and goods, representation of international retail chains or specialized points for the culture of tourists (Russian, African, Arabic), where representatives of different countries can feel at home.
  • Location. Depending on the type of store, you can choose a tourist area (the waterfront, Old Town, the site of attractions and activities) or a business center with a large flow of business people.

Which stores in Cyprus are popular with tourists:

  • souvenir shops;
  • outlets selling handmade products in the traditional Cypriot style;
  • jewelry stores, especially authentic Cypriot silver stores;
  • local grocery stores that sell local products (fruits and vegetables from the island, halloumi cheese, Cypriot wine, etc.);
  • boutiques of designer clothes and perfumes.

Where to open a shop in Cyprus: the best places

Every city in Cyprus is suitable for opening your store. Of course, the demand will be higher in regions with many locals and tourists — the capital Nicosia, the business center of Limassol, the fashionable resort of Paphos, the touristy Larnaca, and the Cypriot «Ibiza» Ayia Napa. In villages and small regions such as Troodos, Polis, Protaras, and Pissouri, large stores and supermarkets will not be profitable enough due to the lack of population. Still, small grocery stores here will also be in demand by residents of the surrounding area.

The best location is usually in the city center or on the waterfront.

Buy Distress Property or buy a new property in Cyprus for a store? It does not matter for future profitability, but purchasing a property needing renovation does not mean savings because you will have to renovate it to run a retail business, and renovation work can require substantial investments.

In addition, almost every new residential complex, be it townhouses, villas, or multi-story buildings with apartments, can be equipped with an on-site store, offering a comfortable infrastructure to its residents.

Thus, buying a store in Cyprus has many advantages and profits. However, success depends on initial conditions and fundamental approaches — market analysis, competitors' products, risk calculation, and the most realistic situations. SPM Real Estate specialists can conduct full-scale research and create a customized business model for you.

Prices for buying a shop in Cyprus

As with any real estate, the price of stores in Cyprus depends on many factors. For example, any commercial property in Limassol and Nicosia will cost more than in Paphos, Larnaca, or Ayia Napa resorts.

Also, buying a store at the planning stage, after construction at the location of a ready-made business, or on the secondary market in a distressed condition are pretty different prices.

Let's name the main factors that affect the price of commercial real estate, including restaurants:

  • location — there are more expensive cities and cheaper, and the cost increases at times when close to the sea;
  • investment model — the more successful it is, the more expensive the object will be, taking into account the projected ROI, payback period, the degree of profitability;
  • the size of the area and the number of floors;
  • technical characteristics and equipment;
  • quality of materials used in construction;
  • the stage of the project  — planning, excavation, construction, finishing, or ready-made business;
  • primary or secondary market.

You can see the prices of real estate in our catalog.

Why buy a store on the island?

There are several reasons to buy property in Cyprus, including a restaurant:

  • optimization of taxation through low tax rates;
  • absence of double taxation in 67 countries, including Ukraine and Russia;
  • high liquidity of the property — if you buy it now, you can be sure that after a while, you will sell it for a much higher price;
  • increased demand for business objects with an average ROI of 8%;
  • a wide range of properties for commercial purposes, both in the planning stage and ready-made business;
  • the possibility of obtaining a permanent residence permit for the investment.

Many investors open businesses on the island and buy stores to optimize taxation and save money. 

You can get preferential corporate rate terms in the following cases:

  • the entire amount is exempt from tax on dividends, sale of securities, foreign exchange gains, rental fees on protected historic buildings, income from Cyprus representation abroad;
  • the tax is reduced to 50% if you operate in the audio-visual industry.

Also, some goods and services are exempt from VAT:

  • services in medicine, finance, and management from investment funds;
  • rental of residential real estate;
  • some types of activities: cultural, educational, sports.

When buying a store in Cyprus, you will have to open a corporate account for your business in a local bank, later through which all financial transactions and payment of bills will be carried out.

To open a corporate bank account, you must submit documents: a set of registration documents and a license, a copy of your ID card, proof of head office address, a tax number, and more.

Our experts have lived and worked on the island for over ten years. They can help you find the best place to locate your business and build a customized business model, as well as help you gather all the necessary documents for registration.

The advantages of investing in real estate in Cyprus

In addition to the above, buying a property offers you several other benefits:

  • safe country — the island is the 5th safest country in the world, there is almost no crime, and even petty theft is a rarity;
  • high standard of living — the country is a member of the European Union, is a member of the Eurozone, and is governed by the British legal system, which allows its residents to live at a high level;
  • Quick Permanent Residence Permit — If you buy a property for €300,000 or more, you will get a Permanent Residence Permit through an accelerated procedure for 2 months. A permanent residence permit covers you, your spouse, your children, and your parents. And the residence permit of Cyprus is the EU residence permit with all its benefits. After 7 years of receiving the status, you can become a citizen.

What other real estate can I buy in Cyprus?

In addition to restaurants and cafes, you can buy an effective commercial property in Cyprus:

  • cafes and restaurants;
  • shopping and entertainment centers;
  • offices, co-working spaces, and innovation hubs;
  • hotels and apartment hotels;
  • medical clinics;
  • kindergartens and schools.

You can also buy residential real estate in Cyprus, which can be used for residence and rent, which pays off well during the beach season and all year round for a long-term lease. The following properties represent residential real estate:

  • Apartments, also called flats, are located in apartment complexes and most often include 1 to 3 bedrooms;
  • Townhouses — are apartment buildings, but each dwelling has its entrance from the street and is only joined by two side walls;
  • Villas are detached houses, often on 2 floors, with their territory, private pool, and recreation area;
  • Adjoining villas — this type is similar to a townhouse, but the difference is that the house may have only two owners, each apartment has a separate entrance, and with the neighbor in common, only one wall.

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

Your most valuable contact in Cyprus — SPM Real Estate.

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We, SPM Real Estate team, provide our users with reliable and comprehensive information concerning buying and renting residential and commercial real estate, as well as covering variety of domestic and legal issues.

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