Cypriot reunification talks spur investors

Thursday, 05, Jun 2008 10:07

The incremental process of reunification in Cyprus could provide a financial boon to investors in the longer-term, according to Property International.

Last week, the Cyprus President, Dimitris Christofias met Turkish Cypriot leader Mehmet Ali Talat to discuss upcoming reunification talks.

Following the meeting the two community leaders reaffirmed their commitment to a bi-zonal federation.

As such the likelihood of reunification is seemingly increasing, with Property International urging buyers to consider property in the north of the country now.

"North Cyprus has long been overlooked by investors, who have traditionally bought in the south of the island," said Dermot O'Kane, director of Property International.

"The north has much more to offer, however. It has not experienced the over development which has spoilt much of the beauty of the south, and the north Cypriot government has learnt from this, putting restrictions on new developments in place to protect the areas of outstanding natural beauty."

The organisation also points to a host of other attractions on the island.

For example, North Cyprus removed inheritance tax in 2006. Furthermore, every individual or household is exempt of Capital Gains Tax once in their lifetime on the sale of one property.

Since Turkish Cypriots voted in favour of the UN-backed reunification of the country, north Cyprus has benefited from ?400 million (£316 million) in economic aid for improving infrastructure.

The government is also actively encouraging the development of the region as a fiscal and business hub.

There is also a strong buy-to-let potential on the island. North Cyprus experiences 320 days sunshine per year, making it a popular location for sun-seeking tourists and people looking to move to a warmer climate.

Around 433,000 tourists visited the north of the island each year, a figure which is expected to increase dramatically over the next five years.

Chris O'Toole