HifX: Cyprus and Malta adopting the Euro could lead to surge in foreign property purchases

19 July 2007
Malta and Cyprus are due to adopt the Euro on January 1st 2008, and currency specialists HiFX predict that more Brits will start to invest in the two islands as a result.

Both countries had to satisfy the EU’s stringent economic criteria, and have now become the second and third new EU entrants since 2004 to be allowed to have the Euro as currency.

HiFX believes that the Euro, along with the strong economies and local cultures in both Cyprus and Malta will make them very attractive prospects for British investors.

According to HiFX data, the number of Brits enquiring about buying in Cyprus and Malta has doubled in the last year, and this figure is only expected to rise.

“We predict the property market on both islands to continue to grow due thanks to a number of reasons,” explains Mark Bodega, Marketing Director of HiFX. “British purchasers like the legal system in Cyprus as it is easy to understand-being based on the English one.

“The Cypriot government also believes in looking after the environment – properties cannot exceed a certain height, density is monitored and green areas are planted within developments.”

“Malta boasts far lower taxation than the UK and there are no annual council or property taxes and inheritance tax was abolished in 1992. Since joining the EU in 2004, the Maltese property market has shifted up a gear.

“As a result we are getting a substantial amount of enquiries from property investors seeking to purchase property to rent, and more discerning buyers looking for luxury properties and the excellent tax rates available to the higher tax payer”.

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