How Brexit Is Affecting Purchasing A Property In Cyprus - Part 2
IN THE SECOND Part of our FOUR (4) PART SERIES WE are exploring how brexit affected the real estate market in cyprus immediately after the referendum.
How Brexit Affected The Real Estate Market In Cyprus Immediately After The Referendum
About five months after the June 2016 referendum which saw UK nationals decide to leave the EU, Cyprus had just escaped a long economic recession and was keen on improving her economy. The news of Brexit definitely took a toll on them initially as the real estate market of the country was heavily reliant on British nationals who have made the country this ideal vacation location. During the month of June right after the referendum, the British Pound Sterling experienced a reduction in value which, according to reports, was its lowest reduction in value in the past thirty (30) years. The reduction in the value of the British Pound against the Euros made UK nationals reluctant to sell off their properties in the country in that period of time. However, the drop in the value of the British Pound reduced the budget of willing buyers. This greatly affected the Cyprus real estate market at that time. Most British nationals who still had hopes of buying properties in the country according to reports had to wait either for the Euros to fall or for the Pounds to experience an increase in value.
With an increasing number of British nationals living in Cyprus, the real estate industry in the country is booming with most clients being British nationals. The Brexit referendum and talks have raised great concern in the hearts and minds of these British nationals who are seeking to buy and own houses in the country.
For property buyers seeking to invest further in the Cyprus real estate probably because of the exchange rate, they will find it interesting to know that the Brexit talks irrespective of how it plays out now that Prime Minister Theresa May has announced her resignation would not affect how they are able to buy properties in Cyprus. Aside from the fact that British nationals are able to buy properties in Cyprus irrespective of how the Brexit talks end, they will also get to enjoy vacation and trips to this country without having to worry. While you may be wondering why this is so, you will find it interesting to know that property ownership is not part of the "four freedoms" of the single market. In addition to that, the "third-country nationals" which Americans and Australians have been classified as by the Cyprus government will be extended to the British if Brexit is finally achieved. Being part of the "third country nationals" will ensure that British nationals are able to travel without a visa to Cyprus as well as buy properties without having to worry about paying for extra charges. In addition, third-country nationals are able to purchase two properties.
Basically, the four freedom principle is one that has been stipulated by the EU. The idea is that non-EU citizens would not have to enjoy the benefits EU citizens enjoy in all EU member states. For example, one of the four freedoms is "work." This means that non-EU citizens cannot work in any EU member state without a work permit.
Stay tuned for Part 3
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