George Chrysochos: The whole economy benefits from the Investment Program

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The Cyprus Investment Program brings benefits for all sectors of the Economy, Cyfield Group CEO George Chrysochos points out to InBusinessNews, emphasizing that with the latest revisions and its interconnection with the European money laundering legislation, it saves money its viability.

Specifically, George Chrysochos, when asked to refer to the benefits of the Cyprus Investment Program for the Cypriot Economy, both for the Land Development sector and for the other sectors of the Economy, stated that “in terms of the real estate sector, 50% of real estate sales in 2019 involved foreign investors, so the direct impact on the Land Development sector is huge. At the same time, it provides indirect support to other sectors of the Economy. Entrepreneurs, investors or people of high income come to Cyprus and when they are naturalized they make further purchases. I know many who bought the real estate to naturalize and when they secured Cypriot citizenship they invested in RES, companies, bonds and have deposits in banks. “There are multiple benefits.”

It is worth noting that investments in the field of construction and land development alone drive half the economy, as through the construction sector money is channeled to other sectors of the Economy such as manufacturing, transport and materials.

In addition to real estate investments, through the Investment Program there can be investments in other sectors of the Economy. We are in favor of promoting other sectors of the Economy, such as investment funds, because the investment funds provide funding for the implementation of various development projects in tourism but also in the primary and secondary sectors of the economy.

At the same time, the State itself, which collects taxes, benefits greatly from this Program. For example, when the investor buys real estate, the State collects 19% VAT as well as the contribution of € 200,000. These amounts are of great importance since the State can exploit them in various ways. At the same time, the professional services sector (lawyers, accountants, etc.) benefits. “So some people should stop firing, on the occasion of the Investment Program, the Land Development companies.”

Regarding the solvency of the Cyprus Investment Program, as it has been formulated today, Mr. Chrysochos stressed that “the Minister of Interior clearly stated a few days ago that they aim at 200 applications per year. This means that there will be a dramatic reduction compared to 2019. The program itself with the new provisions that have been adopted and its interconnection with the European law on money laundering will prevent the naturalization of dangerous or politically exposed persons. It is an important step that shields the program so that some people stop shooting it, especially our European partners. It shields it and ensures its long-term viability. It is better for the demand to decrease and for it to continue to exist

Source: IB