Commercial Property in Paphos: the Attractiveness of Investments

Paphos is one of Cyprus's most unique cities, combining luxury hotels, nature's beauty, ancient history, and business sector development. It is one of the most fashionable resorts in Cyprus and a developing business center. Commercial real estate in Paphos attracts the attention of investors, as the profitability of such assets is increasing every year due to the increasing flow of relocating companies. Paphos also aims to become a regional center of innovation, research, and high technology.

What are the most popular businesses in Paphos?

The most popular businesses in Cyprus are tourism and real estate. These two areas provide annual GDP growth and attract investors from all over the world.

Hotels in Cyprus in the high season have 100% occupancy and provide high-quality tourist services. Cafes and restaurants serving cuisines worldwide — American, Asian, Chinese, traditional Cypriot, Mediterranean, Italian, Russian, and Ukrainian — are in demand. Also in need are stores in Cyprus, which sell traditional souvenirs - and we are not talking much about magnets as the Cypriot lefkara lace, leather goods, and silver jewelry. Wine boutiques are also in demand, where you can buy the highest quality Cypriot wine, including the legend among Cypriot wines - Komandaria.

But still, the most profitable are purchasing real estate in Cyprus. This can be both the residential sector (villas and apartments), which is in demand for rent by tourists and relocated people, and the commercial sector, namely offices, as Paphos is developing in the business center paradigm, which generates increased demand for offices, innovative hubs, and co-working spaces.

How attractive is Paphos for investment?

The city does not stand still. After Paphos was recognized as the European Capital of Culture in 2017, innovative activities began to unfold here. The town began to improve in the direction of technology and maximum comfort. Thus, «Smart City Lighting», smart bus stops, augmented reality applications for visitors, new parks and squares with tennis courts, basketball courts, children's play areas, and a landscaped garden have appeared. Projects for a network of bicycle paths and pedestrian alleys throughout the city, bicycle and electric scooter rentals, new bus routes, and the development of the urban transport network are also in the implementation stage.

All conditions are created to attract global high-tech companies to Paphos, innovations are welcomed and developed, the tourist sector is expanding, services are provided, and new real estate of different types — boutique hotels, shopping centers, office buildings, villas, apartment complexes are being built. The city is now called the regional capital of innovation.

First of all, purchasing commercial real estate in Nicosia is attractive because every year, Cyprus transforms from a tourist mecca into a business hub, attracting giant companies and entrepreneurs worldwide.

Buying commercial real estate in Paphos has the following advantages:

  • low taxes for business (12.5% corporate tax, no tax on dividends, foreign profits, shares, benefits on several other taxes);
  • purchase of profitable real estate due to a steady increase in rental prices for 3 consecutive years;
  • IT companies covered by the Ip-box program can be taxed at a rate of only 2.5%;
  • no double taxation with 67 countries, including Ukraine and Russia;
  • the average ROI for commercial real estate of 8% to 15%, with an expected increase to 25-30% for some properties after 2023;
  • getting a permanent residence permit in Cyprus by an expedited procedure for purchasing real estate worth 300,000 euros and more, including VAT.

Any success depends on initial conditions and fundamental approach — analysis of the market, competitors' products, calculation of risks, and the most realistic situations. SPM Real Estate specialists can conduct a full-scale analysis and create a customized business model for you.

What kind of commercial real estate can I buy in Paphos?

Commercial real estate in Paphos:

  • shopping centers and stores;
  • restaurants, cafes, bars, and taverns;
  • hotels, apartment hotels, boutique hotels;
  • office space.

You can buy real estate in Cyprus at any stage of construction, whether it is a shell or a finished business.

Commercial real estate is often part of residential complexes like apartment complexes or villas.

What is the price of commercial real estate in Paphos?

The price of a property in Cyprus in Paphos can be lower than in the capital of Nicosia or Limassol but more expensive than in other regions due to the rapidly increasing demand. The cost varies greatly depending on the type of object and other factors. For example, you can buy a store in a tourist area for 80,000 euros or a large area in a plaza for 1 million euros.

The price of commercial real estate in Paphos is formed by taking into account the following factors:

  • location — in the center or on a tourist promenade;
  • investment model — the more successful it is, the higher the price;
  • object type;
  • total area;
  • internal and external infrastructure;
  • the presence of the park area, landscape garden, and food court;
  • the technology of the building and internal service;
  • the stage of the project;
  • primary or secondary market.

You can see the prices of properties in our catalog.

Moving to Cyprus through real estate investments: what are the advantages?

You already know the benefits of buying a property in Paphos. Such an acquisition provides a solid safety cushion. It allows you to optimize your business by reducing taxes but also opens up many other opportunities if you decide to move to the island. So what do you get when you move to Cyprus through real estate investment?

You will get the following advantages of moving to Cyprus:

  • a high standard of living;
  • life in a European country;
  • British legal system;
  • currency — euro;
  • safety;
  • clean ecology;
  • no polluting industries;
  • quality products;
  • one of the best countries to live with children;
  • quality education;
  • English schools;
  • 330 days of sunshine a year;
  • Blue Flag beaches;
  • clear and calm sea;
  • warm climate.

What other property can I buy in Cyprus?

In addition to commercial, you can also buy a residential property in Cyprus, which can be used for both accommodation and rent.

Objects represent residential real estate:

  • apartments (flats);
  • townhouses
  • villas (houses);
  • semi-detached villas.

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

SPM Real Estate is your most valuable contact in Cyprus.

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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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