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A few years ago, it was the Lebanese who were moving to Cyprus. But since October 7, 2023, with the onset of the war between Hamas and Israel, it is the Israelis who are turning to the island, making it a refuge or a backup plan.
On this small Mediterranean island, the native Jewish community is working to welcome numerous Israelis fleeing the instability in their country and the war that has been raging since October 7, 2023. In fact, these Israelis are flocking to the island to such an extent that it has now become a refuge where they are making investments. According to data, Israeli investments in Cyprus are primarily focused on the energy, technology, and real estate sectors.
In this context, within a year, rents in Limassol have risen by 23%, according to Ask WiRE, a start-up monitoring the Cypriot real estate market. Indeed, Israelis, who are willing to pay exorbitant rents, are driving up prices, making it increasingly difficult for Cypriots to find reasonably priced housing.
Furthermore, studies indicate that Israeli companies are investing in renewable energy projects and exploring opportunities in Cyprus’s tech sector.
A Tempting Tax System
Why Cyprus? Life there is cheaper than in Israel, and above all, the tax system is attractive for foreign investors. Cyprus’s corporate tax rate is 12.5%, one of the lowest in the European Union. This appeals to Israeli investors fleeing instability and economic stagnation in their country, seeing Cyprus as a prime investment opportunity. In fact, according to Cyprus Business News, Israeli investments on the island have reached unprecedented levels.
In addition to Israel, Russia also ranks among the foreign countries with a strong presence on the island.
It is worth noting that while Israelis are driving up prices, Russians and Ukrainians are also eager to invest in Cyprus.
One must remember, however, that Cyprus has not always been a welcoming place for Jews.
During World War II, the United Kingdom, of which Cyprus was then a colony, prevented more than 52,000 European Jews from settling in Palestine. They were confined to camps with harsh living conditions.
Today, according to statistics, more than 3,000 Jews, mostly Israeli nationals, are among the island’s 1.2 million inhabitants.
