London 6/1/2008- Proof that the Cyprus housing market has been popular with buyers can be seen from the latest financial reports from the Cyprus Inland Revenue. It has been profitable year for the government with bumper tax receipts as a result of the flurry of activity in the property market.
According to the Cyprus Inland Revenue Department total tax revenue in the first eleven months of 2007 jumped 43.3% representing a record CYP 321 million or EUR 549 million increase,
The top three Cyprus hot spots for overseas property portal Homesgofast.com include Paphos, Coral Bay and Limassol.
Paphos has seen consistent interest and house prices in Paphos areas steadily rising. Ideal for luxury home buyers can find stunning luxury apartments, penthouses, villas and townhouses Property in Paphos
Coral Bay which is 11 kilometres to the north of Paphos provides one of the best natural beaches in the area. This is an established resort with many luxury villas. Property in Coral Bay
Limassol is also proving popular with overseas buyers Pissouri and Governor’s beaches are within easy reach as is the enormous beach at Curium
Capital gains tax surged 142% year on year to CYP 247.1 million or EUR 422 million, with most of it originating from intense activity in the real estate market in the run up to the imposition of VAT on land purchases and a rush by foreigners to snap up luxury property in Cyprus.
The 4.4% GDP growth rate coupled with a rush by foreign companies, especially from Greece to set up companies here to take advantage of Cyprus’ competitive tax rate helped boost corporate tax revenue up by 39%
The increase in tax revenue, most of it unexpected and not sustainable according to the Finance Ministry has allowed the government to forecast a fiscal surplus for 2007 of up to 1.5% of GDP.
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