Lemestia Estates Cyprus

Joining the Eurozone

Fri, 22 Feb 2008 20:04:22 +0000

Cyprus is now fully fledged European state

Cyprus entry into the Eurozone on January 1, 2008 caps several years of planning and preparation for the currency changeover. The Euro become legal tender in Cyprus, replacing the Cyprus pound (CYP) at the fixed rate of € 1 = CYP 0,585274.
The € 1 and € 2 coins depict a cruciform idol from the Chalcolithic period (3000 BC). This characteristic example of the island’s prehistoric art reflects Cyprus’s place at the heart of civilization and antiquity.
Featured on the 10, 20 and 50 –cent coins is the Kyrenia ship, a trading vessel which dates back to the fourth century BC and a symbol of Cyprus’s seafaring history and its importance as a centre of trade.
The 1,2 and 5-cent coins show the moufflon, a species of wild sheep found on Cyprus and representative of the island’s wildlife.
The adoption of the Euro in Cyprus is an exciting progression. The positive effects upon the economy are likely to increase demand in an already buoyant market with a continuing increase demand in house prices. Despite the downturn in the UK market, people are continuing to retire and are keen to live in an appealing climate.
The property market in Cyprus is established, predictable and much less volatile than other newer markets. There are excellent internal and international transport links to the UK, Europe and other destinations; a very low crime rate; a high standard of living balanced by a relatively low cost of living; significant tax benefits (including low tax for pensioners) and excellent medical and educational facilities. All of these factors contribute to the island’s attraction for UK buyers.

Key changeover dates

Account conversions and introduction of the banknotes and coins 1 January 2008

Last day on which Cyprus pound banknotes and coins will be legal tender 31 January 2008

Exchange of Cyprus pound banknotes and coins by banks and co-operative credit societies free of charge until 30 June 2008

Deadline for exchange of Cyprus pound coins by the Central bank of Cyprus 31 December 2008

Deadline for exchange of Cyprus pound banknotes by the Central bank of Cyprus 31 December 2017

Limassol an ideal place for investment

Wed, 26 Dec 2007 17:56:45 +0000

Limassol is the largest seaside resort situated on the south coast of the island of Cyprus. Acting as a magnificent backdrop to the city spreading for ten miles along the coast, are the Troodos mountains. The foothills of these mountains are blessed with a fertile ground making them an ideal place for vineyards. Since the Middle Ages when the Crusaders invaded Cyprus under Richard the Lioneheart, Limassol has been known to traders for its wine and sugar cane. The second largest city of Cyprus, with a population of 135.000 is the centre of the wine-making industry and serves as an important commercial and tourist centre.
Towards the end of the last century, Limassol has witnessed more social changes than any other town in Cyprus as it surged forward in leaps and bounds. Over the last decade, the rate of growth has increased dramatically and the standard of living has continued to rise. Renowned for its hospitality, its popularity as a holiday destination or a place to live, Limassol is town of exciting contrast and colours, history and culture, a lovely temperament and of course, Cypriot people have a unique way of enjoying life that is positively contagious. The town’s carefree holiday atmosphere, with a wide seafront promenade and bustling little shopping streets, is matched by the gaiety and lively character of its people. With its fun-loving reputation and best nightlife on the island it is fitting that only Limassol stages some of the Island’s best-known festivals: the annual Wine Festival in September, when the various wineries offer free samples of their products for ten days: the ten day pre-Lenten Carnaval with masquerade parties, balls and grand parades, the Limassol Festival in summer and the ancient Drama Festival at Kourion. Concentrated chiefly on the eastern side of Limassol, all types of holiday accommodation have been built close to the sea. These range from five star hotels to apartments, maisonettes and luxury villas. Near them are a wide range of taverns, pubs, discos and nightclubs.
There are numerous beaches to choose from, some very popular during midsummer with the convenience of changing rooms, shower, cafes and bars, other quite uncrowded, particularly those on the outskirts of the town, sach as the sandy beach commonly known as “Ladies Mile”, west of the new harbor. Limassol also has an attractive, newly-completed marina equipped with every facility for the yachtsman.
As a shopping centre Limassol offers the full gamut from ultra-modern to traditional and handmade. European wares have place alongside local produce, and as in other parts of the island, shoes and clothes can be made to measure in matter of days. Busy St Andrews Street, not far from the seafront promenade, makes a fascinating trip with its quaint buildings and overhanging terraces, under which a cornucopia of small shops vie for attention on this narrow, jostling street.
Another important shopping street is Makarios Avenue, where many prestigious boutiques and showrooms are located, as well as small shops of every type. Visiting the wineries on the outskirts of the Limassol will allow you to view the process of wine production and allow you to sample the final product. Near the old port is Limassol Castle, where Richard the Lionheart allegedly married Queen Berengaria of Navarre in 1191 and crowned her Queen of England – the first Coronation and Royal Marriage to take place outside England. Its grounds house the Medieval Museum of Cyprus with interesting pottery and tombstones amongst its numerous exhibits. Limasol also has an Archaeological Museum, with fascinating statues and pottery finds. The municipal Art gallery as well as a FolkArt Museum reflects the customs and traditions of the past. The Municipal Gardens a small zoo offer a pleasant stroll amidst lush trees, plants and shrubs.

Consider Limassol
For those that enjoy an outdoor lifestyle or playing outdoor sports, this Mediterranean town is the perfect place to purchase your dream home, with almost 340 days of beautiful sunny weather and warm nights. Centrally located between two international airports and short drive from the Secret Valley and Aphrodite Hills Golf Course, Limassol is an ideal and affordable place to invest in your retirement and future.

Cyprus property outlook

Wed, 26 Dec 2007 17:54:50 +0000

The Cyprus property market is one of the fastest growing markets within Europe. Investors are attracted by the potential growth in terms of returns on investment of property in Cyprus compared to other countries in Europe and the UK. The climate (340 days of sunshine a year), along with easy access to the UK, Europe and other destinations is also a significant plus factor when considering the purchase of property.
Since the country’s independence, its economy has proved its dynamism and flexibility. Due to the performance, Cyprus is today ranked by the World Bank as a high level income country. Among the elements of its success are high GDP growth, a dynamic employment market, political stability, well developed infrastructure (transport, communications, etc.), and an expanding tourist industry. The island can count on its climate, its picturesque sites, its ancient vestiges, its medieval monuments, and its quality hotel installations to attract travelers and investors.
Cyprus has a free market economy with the role of the government limited to the provision of public utilities and the necessary infrastructure. The government also promotes and maintains favorable investment conditions, which permit entrepreneurs to participate directly in the process of economic activity.
Cyprus properties are a sound investment, worthy of consideration. The number of property developers in Cyprus is an indication of the scale of property development taking place in Cyprus. Cyprus aims to attract potential foreign investors and encourage them to become directly involved in the Cyprus economy, since increasing investment activities will contribute to the enhancement of the production capacity and will further enable Cyprus industry to compete in the international marketplace.

Time schedule for the introduction of the euro.

Wed, 26 Dec 2007 17:53:10 +0000

Based on the decision of the Council of Ministers, the target date for adopting the euro is 1st of January, 2008, provided that Cyprus, which will be evaluated by the institutional bodies of the European Union (EU) on the basis of the Convergence Report, will fulfill the convergence criteria (known as Maastricht criteria). This date is called E-day in the following text.
E-day (1st January, 2008)
- Withdrawals from bank accounts will be only in euro.
- Automatic Teller Machines (ATMs) will issue only euro.
- All payments (e.g. salaries, pensions and social grants) will be made in euro.
- Prices in shops and commercial enterprises will be expressed in euro. The Cyprus pound equivalent will be also shown for a certain time period. Shops will accept Cyprus pound banknotes and coins for payment until 31.1.2008, but they will give change in euro.
- Banking institutions will exchange Cyprus banknotes and coins for euro, free of charge, at least for the amount of CYP 1.000 for banknotes and CYP 50 for coins, for a period of 6 months from the date of the introduction of the euro, i.e. until 30.6.2008.
- Central Government and Semi-Government Organizations, Government Departments, Local Authorities, Medical Funds and Post Offices will make and accept payment in euro. Cyprus banknotes and coins will also be accepted for payments until 31.1.2008 but any change will be given in euro.

Parallel Circulation period
From the day of the introduction of the euro, and for a period of one month, that is from 1.1.2008 until 31.1.2008, the Cyprus pound will circulate in parallel with euro and will be accepted for cash transactions. This period is referred to as the parallel circulation period. After 31.1.2008, Cyprus banknotes and coins will cease to be legal tender and their acceptance for payments will not be obligatory. However, they will continue to be exchanged for euro at commercial banks for a certain time period which will be decided, as well as at the Central Bank of Cyprus.

Exchange period for the Cyprus pound
The Central Bank of Cyprus will continue to exchange to exchange free of charge Cyprus pound coins for euro for a period of 2 years from the day of the introduction of the euro, that is until 21.12.2009, and banknotes for a period of 10 years, that is until 31.12.2017.

Frontloading of banks and business enterprises
In order to facilitate the public during the changeover period the Central Bank will frontload the banks with the necessary quantities in euro before the 1st of January, 2008. Commercial enterprises, post offices and companies operating vending machines, will be sub-frontloaded with euro through the banking system, before the date of its introduction, in order to be in a position to meet the needs of their customers.

Cyprus and the Euro

Wed, 26 Dec 2007 17:50:39 +0000

The process
Cyprus is due to join the Euro on 1st January 2008. The process started as far back as May 2005 when Cyprus joined the Exchange Rate Mechanism (ERM II).
In July this year the final conversion rates was set and from September 2007 until June 2008 prices will be displayed in both Euros and Cyprus Pounds.
Later this year the new Euro notes and coins will be available. There will be a one month overlap when both currencies can be used before the Euro becomes ONLY legal tender in Cyprus.

Banks
Banks will be able to replace coins for you until 2009 and notes until 2017. Your bank balances will be converted on 1st January 2008 with no charges and no cheques in Cyprus Pounds can be used after that date.

Rates
The Cyprus Pounds currently trades at around 1.70 and 1 Euro at around 0.58 cents and this can fluctuate by 2.5% either way.
The rate for conversion is due to be locked by August 2007 at the latest and could well be earlier.

Other Issues
Currently the Cyprus pound is slightly stronger than the Euro so you will effectively get more Euros for your pound.
Inflation may be an issue with general inflation as well as specific price inflation i.e. rounding up. This has happened with other countries so we need to be aware.
Will the Cyprus pound be devalued? Not according to the Governor of the Central Bank who stated on February 13th 2007 that there was no question of devaluation before changeover.

What about Sterling?
As Sterling is outside the Eurozone current fluctuations will continue. It will need to be converted into Euros, not Cyprus Pounds after 1st January. You will still be able to have Sterling accounts in Cyprus Banks.

Interest rates
Interest rates in Cyprus pounds are currently lower than Sterling and Euro interest rates are lower still. That is very good news for borrowers but bad news for savers.
The interest you received may go down by 20% and the Defence Levy of 10% will remain.

Benefits
It will be either to compare prices with the rest of the Countries who use Euros. The exchange rate risk will be reduced. Stability as well as competition should increase and there could well be more EU investment into Cyprus.

The vast majority of the information here is based on information available together with our own thoughts and assumptions.

Bringing out the best in Cyprus

Wed, 26 Dec 2007 17:46:45 +0000

The Cyprus Tourist Organization (CTO) has recognized that today’s tourists are more demanding, independent, active and well informed on tourist destinations, and that their needs and expectations are diverse and constantly changing.

As a result the CTO have implemented a plan, which aims at introducing of Cyprus and will revolve around two central pillars – the Cyprus culture and the environment.
This plan will reposition Cyprus as “a mosaic of nature and culture, a whole, magical world concentrated in a small, warm and hospitable island in the Mediterranean, at the crossroads of three continents, between East and West, which offers a multidimensional qualitative tourist experience”.

The overall quantitative target of the plan is to double total revenue from tourism to reach £1.8 billion in constant (1998) prices by the year 2010.
This target will be achieved through a focus on offering quality and value for money to the visitor, coupled with a very modest increase in arrivals (approximately 3,5% per annum, to reach 3.5 million arrivals by the year 2010).
The strategy involves offering a multifaceted tourist experience in a relatively small geographical space.

The culture and civilization of Cyprus is centered on the human factor, which if of paramount importance in the effort to emphasize the uniqueness and distinct identity of the destination.

In addition, special interest products that can bring out the unique character of the island will be enhanced.

Plans have been implemented to build 11 new golf courses, as well as four new Marinas. In addition, National Forest Parks, Marine Parks and Botanical Gardens will be introduced as well as many other special interest products.

By implementing this plan Cyprus will break free from the over-crowded Sun and Sea tourist market and offer its visitors a far more varied and fulfilling experience.