Doing business in Cyprus

Doing business in Cyprus

Over the course of last two decades Cyprus has been seeing a large number of immigrants from Russia and other CIS countries. People comfortably settle on the island, many of whom decide to set up new businesses seeking active business engagement.

Average investments vary between 100K TO 1 million euros, in variety of fields (restaurants, bars, beauty salons, shops etc..), offering the newcomers with flexible business terms.

For most of them, not only it’s an opportunity to fill a vacant market niche but to further establish strong business presence and engage in the local entrepreneurship communities.

Opening a new restaurant, bar, beauty salon etc.

It is common for Cyprus to buy established, running businesses “off the shelf”. In other cases, people would see this option as too risky.

Once you have made a decision on the type of business you want to acquire - whether it's a restaurant, a beauty salon, or a hotel – the most important issue to address would be to carefully learn it to the finest detail, and that means its background, financial history, liabilities, reputation and many other factors that are not to be missed.

Our experience shows that people would often fall victims to many business opportunities that look appealing at a first glance. In some cases, the land or an asset acquired are proven to carry ownership issues, in which case transfer of deeds will have to be analysed and negotiated accordingly.

In a nutshell, no matter how attractive a business may appear to be, you should exercise caution and invest effort in looking for all the possible negatives. Having done all that work, you might even reconsider your position and make a decision to set up a new business from scratch.

One way or another, our specialists will take you through the process and provide the guidance necessary to obtain the permits and approvals required for make that happen in the most efficient and productive manner. We have deep understanding of the local real estate market and its specifics which you will need necessary to apply in each and every step of the process.

Buying & Construction of Hotels in Cyprus.

Покупка или строительство отеля на Кипре

Hotel acquisitions would normally be managed in a rather confidential manner. It is necessary to have non-disclosure agreements in place to avoid reputational damage to assets involved.

What we are seeing is that often, the information on the hotels advertised are either incomplete or misleading. The only way to acquire a fully comprehensive pack of information on the asset is to carry out a deep analysis involving direct contact with the asset owner.

Hotel auctions might be a good source for such acquisitions. Those would normally offer repossessed assets by the banks. Hotel business has always been one of the most attractive in Cyprus, appealing both to the investors and operating companies. The 2008 crisis had led to many repossessed assets being put out for sale. In some cases, loans taken against those would not even cover interest charge by the banks.

However, Cypriot government has come with a program designed to help hotels to deal with those situations. It allows for restructuration of the existing liabilities, with option utilise the existing plot\s for construction of additional housing units (up to 20-30% of the plot space). It also grants investors to see further profit from the acquisition of the hotel plot by expanding the project to include additional housing unit for sale of rental. That way, not only investors enjoy the profits from the property sales, but also get 10-30% returns on the management of those hotels.

Our analysis shows that first line seas lands represent the most profitable opportunities for hotel business, where land plots that carry construction approvals will offer the best value for money.

We believe, the expertise we gained in the Cypriot market makes us the most viable partner for whatever ambitions you might have when it comes to hotel acquisition business.

Coupled with the fast experience in the sales space, we will consult you on the background information on virtually any asset on the island. You won’t find two alike business engagement scenarios in Cyprus, therefore each and every opportunity is to be carefully examined on the case-by-case basis.

When it comes to legality and regulations, we will be delighted to offer negotiation on your behalf with asset owners and law firms representing both side of the sale process and guide you through the process to completion.

With that said, Veskip would welcome an introductory meeting with you to provide you with the most up-to-date opportunities on the Cyprus hotel acquisition market.