Cyprus passport by investment: Amathus Hills complex — invest in real estate with guaranteed profitability

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In 2017, 260 luxury real estate objects worth at least €1,500,000 were sold in the territory of Cyprus. This is the official information provided in the report ‘Cyprus Real Estate Market Year in Review | 2017’ by the experts of the Cypriot branch of the international company PwC Cyprus. It is the highest figure recorded in the past years: in 2016, 179 premium class property deals were closed, in 2015 — 89.

Such successful results can be explained by the increased demand in the Cyprus’s passport program and general improvement of the situation in the real estate market. Add that foreign investors can contribute money into objects having high potential and good liquidity. In this article, we’ll tell you about the real estate project in Cyprus that even in the pessimistic scenario will be profitable for the investor.

The total number of premium class (at least €1,500,000) real estate sale-purchase agreements submitted to the Department of Lands and Surveys from 2010 to 2017

Sophisticated resort Amathus Hills

Amathus Hills is a complex located 100 meters from the sea in a silent eastern coastal area of Limassol. It consists of 3 villas designed in the same style, but each villa was constructed following individual projects, which, enhanced by the location functionality, ensures luxurious and prestigious living conditions in the Mediterranean.

Villas were designed by leading architects, which makes them significantly stand out from other objects in Cyprus. The most notable advantages include:

  • traditional architectural features complementing the modern style;
  • best materials for construction and decoration;
  • interior design and furnishing using elements by top European producers;
  • technical functionality;
  • private garden and swimming pool that favorably contribute to the area landscape;
  • a step away from the beach having the Blue Flag certification for being clean and eco-friendly.

The villas are just a two minutes away from a 5-star hotel with the same name, fashionable restaurants and bars. It takes several minutes of driving for one to reach the cultural center of Limassol.

Amathus Hills project

Investing in Amathus Hills under Cyprus citizenship by investment program

In order to apply for economic citizenship, foreign investors can purchase one of Amathus Hills villas or invest in the complex construction.

NOTE! The program requires the minimum investment in housing in the amount of at least €2,000,000.

  • Let us consider the option of one object purchase

The investor buys a villa worth €2,000,000, excluding VAT. Upon the 3-year term expiration starting from the date of obtaining the passport of Cyprus (investment’s minimum retention term), one can either return the investment or keep the object. In case of return, the developer buys the object off the investor for €2,000,000 or returns €1,500,000 to the investor + the real estate object worth €500,000.

Important! According to the program conditions, participants of the CBI program in Cyprus must permanently possess living property worth at least €500,000.

After the construction period is over (18 months), the market value of the villa will reach €2,500,000.

  • The option of investing in the construction of 3 villas

In the course of the Amathus Hills project realization, a separate company is created; the Partner takes the financial responsibility to pay 20% of the maximum investment amount. The remaining part, 80%, is contributed by the investor.

Here is how it looks like in figures:

€2,480,000 is contributed by the Investor (80% of the maximum required investment amount);

€620,000 is contributed by the Partner (20% of the maximum required investment amount);

The land plot with necessary project and permit documentation is purchased with attachment to the new company. The Partner as a managing company is rewarded 30% of the company profit.

The remaining profit is shared between the Investor and the Partner, 80% to 20% respectively.

Amathus Hills project

Financial indicators of the Amathus Hills project

Required expenses

Land expenses:

  • The cost of the land area, project and permit documentation is €2,200,000 + VAT (VAT is returned within 6 months after the date of payment);
  • Taxes and duties charged for the ownership title transfer — €80,000;
  • Legal services fee for support with documentation throughout the whole project term — €20,000.

Development expenses:

  • Construction cost — €2,550,000;
  • Additional expenses — €100,000.

Total cost — €4,950,000

Profit from the resort operation

Let us take a look at the three possible sale variants. Considering the situation in the real estate market of Cyprus, you can count on an optimistic forecast.

Sale of 3 villas (excluding VAT, agent's fee and discounts)€6,000,000€6,500,000€7,000,000
Covered space average cost per square meter€4,320€4,680€5,040
Average cost on 1 villa€2,000,000€2,166,667€2,333,333
Gross profit€1,050,000€1,550,000€2,050,000
Company income tax of 12.5%€131,250€193,750€256,250
Net profit for the investor (80% financing) excluding the managing company fee€514,500€759,500€1,004,500
Maximum total investment in the project€3,100,000
Maximum investment in the project by the investor (80% financing)€2,480,000
Project term18 months
Return of maximum investment19.76% per year29.17% per year38.58% per year
Return of maximum investment for the investor (80%)13.83% per year20.42% per year27.00% per year

Details to consider when investing in Amathus Hills

  • The construction permit allows to launch the selling process starting from the day of the land purchase. On average, the developer needs 1-2 years to collect all the required documents before the construction is started. It is especially relevant, considering the proximity to architectural monuments.
  • Some small projects are in high demand among foreign investors, which can be explained by their reluctance to join big-scale projects. At the same time, there is a lack of objects worth €€2,000,000-2,500,000 that are located in close proximity to the sea (up to 150 meters from the sea). Investing in Amathus Hills, the investor is very likely to sell the object within 12-15 months. It will allow one to return the full investment amount.
  • The resort land is located in a luxury district of Limassol. In the coming months, it is planned to open a 5-star hotel close to the resort, with a developed infrastructure being a great bonus. The works on coastline improvement are currently in progress. Infrastructure development in many cases determines the customers’ decisions.
  • The cost of a square meter construction is €2,000. This ensures a very high level of construction, involving a top-notch contractor providing bank guarantees. The realization cost for a square meter in the property with a personal swimming pool and garden, 100 meters from the sea, is €€4,300–5,000 and is absolutely competitive.
  • As of today, the number of separate villas and cottages located by the sea is limited. The majority of developers aim at constructing apartments in high-rise buildings, which leads to oversupply in this segment of the real estate market. It is worth noting, that life on the Mediterranean coast is associated with picturesque views. Thus, purchasing a villa along the first sea line is a perfect solution both for private use of the property and for investment purposes.

Cyprus citizenship by investment: Passport program peculiarities

The passport program was launched on March 28, 2014. The maximum number of passports was issued in 2017 — 1,013. In 2018, the resident status has already been issued to 92 people.

Program benefits:

  • Visa-free travel. The Cypriot passport holders can enter 158 countries of the world without visa or they can receive one upon arrival.
  • High living standards. The citizens of Cyprus have access to the best EU healthcare facilities, and their children can study in schools and higher education institutions throughout the Europe.
  • Favorable tax environment. The income tax in Cyprus is the lowest in the European Union — 12.5%. There is no inheritance tax in the country, and in 2017, the real estate tax was canceled. Cyprus can boast of a well-established agreement scheme allowing to avoid double taxation.
  • Obtaining a passport just in 6 months. The case processing takes from 3 to 6 months.
  • Status for the whole family. The investor’s spouse, children under 28 and parents can apply for citizenship together with the main applicant. However, they should be financially dependent on the investor, and his/her parents must own real estate in the territory of Cyprus worth at least €500,000.
  • Dual citizenship. One does not have to reject the first citizenship.
  • EU citizen rights. New economic citizens of Cyprus are allowed to live and work in any country of the European Union.
  • No requirement regarding residence. Passport program participants do not have to live in the country before or after obtaining its passport. It is enough to visit Cyprus for just one day in order to get the passport.
  • Citizenship is issued for a lifetime and the status is inherited.

Obtaining the citizenship of Cyprus by purchasing real estate is a reasonable investment in the future of the whole family. You receive the opportunity to visa-free travel around the world, to establish a safe haven in a stable and developed European country, with the process being fully confidential. Add high living standards and tax planning opportunity. When investing in the Amathus Hills project, the candidate and his/her family can enjoy not only the benefits of a second citizenship, but also the profits gained from contributing in a real estate object.


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