Cyprus recognised as regional Medical Centre

Cyprus is gradually being recognized as an ideal location for becoming a regional Medical Centre, providing high quality medical care to the people of this rather turbulent and distressed part of the world, said Minister of Commerce, Industry and Tourism Antonis Michaelides.The Minister said that Cyprus combines a number of important attributes as a destination for health tourism and has the potential to become a centre for health tourism in the near future. Our island, he noted, located at the crossroads of three continents, offers ideal climate both for treatment and recuperation and a high standard of services for medical tourism at cost – effective rates.

He added that the government, recognizing the importance of health tourism for Cyprus, has included the development of this sector in its strategic goals.''The Cyprus government encourages investment in various sectors of the Cyprus economy and health tourism investments are particularly welcomed'', he pointed out. Within this framework, he continued, the government has set up a one stop system for the speedy registration of companies in Cyprus. In addition, it has recently established the Cyprus Investment Promotion Agency, which aims at attracting foreign investment and at facilitating such investment. The government also actively supports the Medical Services Promotion Board, which has been set up by the Cyprus Chamber of Commerce and Industry, and consists of a cluster of the largest private medical facilities in Cyprus.

Source: Financial Mirror

Buying a holiday home abroad becomes more tempting

Owning a holiday home abroad could be cheaper and simpler following changes in the Budget announced this week.

A tax on the assumed rental income from the property - whether or not the buyer lets it out - has been scrapped. The tax had deterred some buyers from purchasing a home abroad, according to accountants.Purchasing property in holiday destinations such as France and Spain through specially created companies allows the buyer to reduce the stamp duty and capital gains tax bills, and escape some complex succession issues. But it has also meant that owners must declare the property as a benefit, and pay tax accordingly.Richard Mannion, national tax director at Smith & Williamson, said: "The removal of this tax charge clears the path for property buyers to establish companies to make their property purchases abroad. We have had a number of clients who have binned plans to buy a holiday home as they did not want to risk the income tax charge."A number of big accountancy firms have in recent years been advising clients not to use company structures to buy their holiday homes abroad, even though these carry significant benefits.Phillip Wood, investment adviser at PwC, said: "We can now revisit these company structures, which is good news for clients."Buying property though companies has a number of advantages. In France, for example, it allows the property owner to sidestep the so-called "forced inheritance" rules, which dictate who inherits the property on the owner's death. In the US, property buyers favour corporate structures as these offer greater protection in the event of an insurance claim against the owner - if, for instance, a visitor is injured on the property.In Bulgaria, foreign direct buyers cannot purchase the freehold on a property but must start up a Bulgarian company to hold the asset on their behalf.People who have already bought properties through companies can claim refunds for any tax they have paid, plus interest. The Treasury estimates that 90,000 people own a property in this way.

Source: Financial Times

Recently released figures from the Cyprus Statistical Service

CYSTAT show that real estate expanded by 19.4% in real terms (ie, adjusted for inflation) in 2003. Gross output at constant 2000 prices rose to CYP 280.1 mln in 2003, from CYP 234.5 mln in 2002. In current prices (not adjusted for inflation), gross output rose in nominal terms by 26.7%, to CYP 317.2 mln in 2003, from CYP 250.4 mln in 2002. Measured on a value-added basis, which shows a sector’s contribution to GDP growth, real estate rose in real terms by 18.6%, in a year in which overall real GDP growth was just 1.8%. Its share in GDP rose therefore from 2.6% in 2002 to 3.1% in 2003.

Source: Financial Mirror

World execs to reveal secrets of success in Cyprus

Ten of the leading chief executives of some of the best-known brands worldwide, such as Swatch, Nestle, Porsche and the St. Moritz Tourist Board will be the main speakers at the “Shaping the Future” international business conference to be held in Limassol on April 26-27. The conference is being organized by TotalServe Management Ltd., the internationally networked business consultancy with offices in the U.K., Greece, Romania, Russia, Poland and Spain. The event is being sponsored by Bank of Cyprus.

Source: Financial Mirror

Cyprus warns foreign companies to refrain from land deals in northern Cyprus.

Interior Minister Neo?lis Silikiotis said that companies which engage in illegal sale or purchase of Greek Cypriot properties in the Turkish occupied north of Cyprus will not be allowed to operate in the Republic of Cyprus.Regarding the activity of foreign real estate companies in Cyprus, Mr Silikiotis said that “A relevant legislation has been tabled in the House of Representatives which provides for the amendment of the provisions of the existing law”.So far, he added, permits to work as realtors are given on a personal level, but after the relevant law is amended, companies will be able to operate, provided they comply with certain provisions such as employing people who are registered in the Realtors Registration List and that at least one person in the company speaks Greek.Mr Silikiotis also stated that it is evident that “companies which engage in the illegal sale or purchase of Greek Cypriot properties in the occupied areas cannot be allowed to operate in the Republic of Cyprus”.

Source: Financial Mirror (Cyprus)

EU inflation stable at 2.1%

According to Eurostat, the Statistical Office of the European communities, annual EU inflation remained unchanged from January’s figure of 2.1%. The current rate of inflation is close to the European Central Banks desired level of 2%. The current inflation rate for the euro zone is at 1.8%, which is in line with the ECB’s inflation target. The stability of the current inflation rate since the beginning of 2007 has come as a surprise; strong economic growth and the increase of German VAT in January had caused many to predict an increase away from the desired level of inflation.

Source: Eurostat

Investors advised to target Cyprus

According to property portal Rightmove, Cyprus is one of the best places for the jet-to-let industry, and this looks set to continue. Rightmove consider several factors to be important in the increased popularity of the island. Advantages of investing in the Cypriot property market include the low cost of living and high standard of living as well as the booming property market, which is offering existing investors strong rental returns. Combining these favourable investment conditions with a Mediterranean climate, it is easy to see why Cyprus will prove to be a hotspot in 2007.

Source: Rightmove

Cyprus rated as 'best place in the world to invest'

According to A Place in the Sun Magazine , Cyprus has been rated as the best place anywhere in the world to invest in property. When considering twelve different factors used to assess the viability of a country, Cyprus came out on top. This was due to its high level of Foreign Direct Investment (FDI), as well as its strong Gross Domestic Product (GDP), as well as its political and economic stability. ther factors that make Cyprus and ideal investment included the number of new developments that are currently available, as well as the PGA golf course and two the state of the art marinas that are all in development. The fact that Cyprus is on target to adopt the Euro in 2008 is also enticing investors to the Island. A Place in the Sun Magazine also cited the number of internet hits' and media attention that Cyprus receives as other reasons why Cyprus remains a hotspot for investors.