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	Cyprus. How has EU membership affected the country? Article Published: 07:27 26/02/2006 Article Classification: Kakopetria Cyprus
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It’s almost two years since Cyprus joined the EU and the benefits of membership seem to have far out-weighed expectations.

On 1 May 2004 Cyprus joined the EU and became a full member. As with other countries in the past, Cyprus hoped for a smooth transition period, they were fortunate in that there was very little economic upset. Almost from day one the economic benefits of being full members were recognised, when an upsurge of foreign investors began taking an interest in Cyprus. Since then the effects have been significant.

The property industry has experienced a dramatic increase with demand by foreign investors for property up by an estimated 100%. This has led to more exclusive resorts being built and made the building industry one of the most lucrative employers in Cyprus.

To be able to judge the effect that the European Community has brought to this Mediterranean island, you only have to look at the three year run up to membership when the country was obviously buoyed by expectation and the last year as a full member. It is estimated that on average property prices in these four years have increased by up to 80%, or an average increase of 20% per annum.

Richard Brady of ‘Olive Tree International’ thinks that Cyprus should concentrate on longer-term growth for the island. “With so much foreign investment at the moment, it is important that the country invests in infrastructure. There are currently many strong points about Cyprus from a foreign investors perspective, but after the EU membership honeymoon is over, longer term stability will be reliant on infrastructure decisions made now”.

There are a number of new golf courses awaiting planning permission, four new marinas and two new airports, both estimated to be completed by 2010.

Cyprus is experiencing an exceptional property boom and it is apparent from the number of quality new builds that are in progress. Up to 60% of foreign investors are British and again this figure is expected to grow as many retirees benefit from the lower taxes, especially no inheritance tax.

Despite this boom, one issue that was paramount to the Cyprus Tourist Organisation was that building should not spoil the natural beauty of the landscape. With that in mind building is heavily regulated and restricted. This has been one of the major benefits for those choosing to live on the island. They can do so knowing that it will not become similar to other European holiday destinations that have become concrete jungles.

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Cyprus. How has EU membership affected the country?

Cyprus