Second Golden Passport trial delayed

Nigel Howarth
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Second Golden Passport trial delayed

Following Monday’s news that a Golden Passport trial had been delayed, a second trial has been delayed until 18 March after defence lawyers asked for more time to prepare.

The accused in this second trial include former Transport Minister Marios Demetriades, some of his family members, and people linked to their family’s law firm, which handled the citizenship applications.

There are ten defendants in total – eight people and two companies – facing 59 charges. These include bribery, extortion, conspiracy, money laundering, and breaking European anti-corruption rules. The accused are Marios, Andreas, Dimitris, and Giorgos Demetriades, Eleni Simillidi, Jing Wang, Josef Friedrich Santin, Vasiliki Georgiou-Santin, and the companies Andreas Demetriades & Co LLC and Delsk (Cyprus) Business Services Ltd.

Extra time for the defence

At the recent hearing, defence lawyers asked for more time to prepare. They said the evidence provided by prosecutors was extensive, and they had just received new material that day. The court agreed to the request, giving them time to review the evidence. At the next hearing, the accused will have to enter a plea.

Bail terms

Until the trial resumes, all defendants can stay free under their current bail conditions. To ensure they attend the hearing, the court set high financial guarantees. Marios, Andreas, Dimitris, and Giorgos Demetriades must each provide €100,000 personal guarantees, while Eleni Simillidi needs €60,000. Jing Wang must pay €100,000 in cash. Josef Friedrich Santin and Vasiliki Georgiou-Santin also signed €100,000 guarantees.

Case background

The case was officially filed at the Nicosia District Court on 27 September 2024. It focuses on claims of misuse of the Cyprus Investment Program, which offered Cypriot citizenship to wealthy people who made large financial investments.

Innocent until proven guilty

All the defendants are considered innocent unless proven guilty in court. The charges and evidence will be fully examined when the trial continues in March.

This case has drawn a lot of attention, highlighting concerns about corruption and loopholes in Cyprus’ citizenship-by-investment program.

Investigation into other corruption claims nearing completion

Anti-corruption investigators are nearing the end of their investigation into claims made in the book Mafia State by Makarios Drousiotis, with fewer than 100 witnesses left to speak.

Former President Nicos Anastasiades is one of those yet to give evidence. The hearings are expected to finish by spring, after which a final report will be prepared.

The investigation, which began in April 2024, has already heard from over 100 people. Transparency Commissioner and head of the Independent Authority Against Corruption, Haris Pogiatzis expects the findings to be ready by the end of May.

Former President Nicos Anastasiades has strongly denied all accusations in written statements and interviews and has taken legal action against the author.

Will Cyprus benefit from Spanish tax hike?

Nigel Howarth
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Will Cyprus benefit from Spanish tax hike?

Britons are expected to invest in Cyprus and Greece instead of Spain, experts say, as Spain plans a 100% property tax for non-EU buyers.

Spain is proposing new measures to tackle its housing crisis, including a sharp increase in property taxes for non-EU citizens. This could double the tax on properties bought by people from outside the EU.

Toby Leek, president of NAEA Propertymark, said the news will disappoint many Britons who have dreamed of moving to Spain for its convenience and better weather. While he acknowledged Spain’s need to address its housing issues, he called the proposed tax “extreme.”

Mr. Leek believes this tax will discourage many Britons, who may instead consider moving to countries like Cyprus and Greece, where property taxes are lower.

Spain’s Prime Minister Pedro Sanchez said the aim of the proposal is to create more housing, improve regulations, and offer better support. He noted that in 2023, non-EU buyers purchased 27,000 properties in Spain, often to earn money rather than to live there.

Spain, like the UK, is facing rising housing costs. High rents in cities like Barcelona and Madrid, along with the impact of tourism and short-term rentals, have worsened the problem.

Seila Sanches Lucas, a lawyer at Broadfield, said the proposal might worry people who have retired or plan to retire in Spain. However, she pointed out that the law is still just a proposal and might take a long time to pass, if it does at all.

She added that other countries, such as Dubai, are becoming attractive alternatives for retirees and investors.

Isobel Neilson of Fragomen said if the tax is introduced, many clients would choose to rent in Spain or look at other EU countries like Portugal or Italy.

Stephen Abletshauser of Spencer West LLP called the plan a “populist move” that could backfire. He said countries like Turkey, Italy, Malta, Cyprus, and even France might benefit as they compete to attract wealthy retirees.

People urged to report unfair terms in loan contracts

Nigel Howarth
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People urged to report unfair terms in loan contracts

The Cyprus Consumers Association (CCA) is urging people with loans taken out since July 1997 to submit complaints to the Consumer Protection Service if they believe their contracts contain unfair terms.

In a statement, CCA President Marios Drousiotis highlighted the association’s past public announcements about this issue, the most recent being in July 2024.

He explained that since May 2021, under law 112(I)/2021, the Consumer Protection Service has the authority to enforce decisions and impose fines worth millions of euros. These powers apply retroactively to loans from July 1997, despite previous claims by the service that the law was not retroactive.

How to report unfair terms

The CCA is calling on consumers with loans from July 1997 onwards to report any unfair terms to the Consumer Protection Service. Complaints can be made by phone at 1429, email at [email protected], or online at www.consumer.gov.cy. The service is legally required to investigate complaints and impose penalties if unfair terms are found.

Additionally, the CCA advises consumers to contact the Financial Ombudsman for concerns about loan agreements with excessive charges due to unfair terms. Complaints can be submitted via www.financialombudsman.gov.cy, email at [email protected], or by calling 22848900. The Ombudsman reviews both performing and non-performing loans.

Mr Drousiotis emphasised that it is time for the Consumer Protection Service to focus on supporting consumers rather than appearing to protect bank interests. He stated that “Consumers need the support, not the banks.”

Golden passports trial starts today (update)

Nigel Howarth
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Golden passports trial starts today (update)

The trial related to the Al Jazeera report on the Cyprus Citizenships by Investment Scheme (aka Golden Passports scheme) gets underway today after the court rejected the Prosecution’s request for a delay.

State prosecutor Charis Karaolidou had asked for a short delay and suggested dropping two of the five charges because two key witnesses are unavailable. Their sworn testimonies or attendance at court haven’t been secured yet.

  • First Witness: This person lives outside Cyprus. While she initially agreed to testify, she has since stopped responding to police attempts to contact her. Efforts are ongoing to locate her.
  • Second Witness: This person recently left Cyprus and now lives in London. He claims medical issues prevent him from traveling and has reported receiving threatening messages. However, it’s unclear if these death threats are linked to this case. The Prosecution doubts his willingness to testify truthfully, raising concerns about his credibility.

The Prosecution argued that resolving these issues is critical because the two witnesses are central to charges 4 and 5. Without their testimony, these charges may be dropped. They requested a 10-day delay to finalize their position.

The accused & charges

Former House President Demetris Syllouris, former Akel MP Christakis Giovanis, and senior lawyer Antonis Antoniou are accused of serious crimes. These include plotting to undermine the government and trying to improperly influence a public official in violation of anti-corruption laws.

From the defence side:

  • Christos Triantafyllides, representing Dimitris Syllouris, opposed further delays, noting his client has been waiting for trial for four years. He emphasized that the delays were not his client’s fault and accused the Prosecution of attempting to shift blame.
  • George Papaioannou, defending Christakis Giovannis, said his client had no knowledge of the threats and agreed to a short delay to avoid appearing uncooperative.
  • Andreas Pittatzis, representing Antonis Antoniou, criticized the witnesses for avoiding their responsibilities and noted his client had no involvement in the alleged threats. He didn’t object to the delay.

The court rejected the Prosecution’s delay request, stating that repeated postponements are unacceptable without a serious reason. The trial will proceed, starting with evidence related to the first three charges. The court also noted the next hearing would be in over 10 days, giving the Prosecution more time to address the remaining issues.

Update

The first witnesses in the opening golden passport trial, linked to the Al Jazeera documentary, did not appear in court on Monday and the next hearings have been set for January 27 and 29, at 9.30am.

 

Cyprus property market resilient amid regional instability

Nigel Howarth
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Cyprus property market resilient amid regional instability

Despite ongoing regional and global challenges, the Cyprus property market has shown remarkable resilience, buoyed up by favourable conditions and sustained foreign interest over the past two years. The outlook for 2025 remains optimistic.

Foreign nationals, including EU and third-country citizens, comprised around 40% of all property transactions in 2023 and 2024. Their robust participation underscores their confidence in the Cyprus property market and highlights their critical role in maintaining its upward trend.

Beyond real estate, foreign investors have significantly contributed to other sectors, including retail, forex, and technology companies, making a significant contribution to growth and the economy.

Stability amid challenges in 2024

Property sales in 2024 increased marginally by 1% compared to 2023, reflecting the ability of the market to withstand challenges such as inflation, high interest rates, and external pressures including conflicts in the Middle East and Ukraine, as well as volatile energy prices.

Forecast for 2025: stability and growth

Projections for 2025 suggest steady activity levels, with continued demand from both Cypriot and foreign buyers ensuring market stability.

Larnaca’s growing prominence

Larnaca emerged as a rising star in 2024, driven by strong interest from Israeli, Lebanese, Russian, and Ukrainian investors.

Recording 3,350 property transactions (a 5% increase), Larnaca overtook Paphos to claim third place in sales. This growth stems from factors such as historically low property prices, the city’s international airport, new hotel investments, a modern mall, and the forthcoming 2.5 km Larnaca-Dhekelia coastal development. These enhancements position Larnaca for sustained expansion and long-term growth.

Limassol maintains leadership

Limassol remained the leader in property sales, with approximately 5,000 transactions in 2024. However, the city saw a slight 1% decline, possibly due to Larnaca’s growing appeal.

Nicosia: a focus for domestic buyers

Nicosia recorded 3,500 property transactions in 2024, a 14% year-on-year increase – the largest growth among all districts. Dominated by Cypriot buyers, the capital remains a cornerstone of the local property market.

Paphos and Famagusta see moderate falls

Paphos experienced the most significant drop, with sales falling 8% to 3,107 transactions, relegating it to fourth place behind Larnaca. However, higher property prices in Paphos may mean its overall revenue remains competitive.

Famagusta, a smaller market, recorded 775 transactions in 2024 – a 5% decline that is negligible given its limited size.

Optimism for 2025

In an interview with Philenews, Polis Kourousides, President of the Cyprus Property Valuers Association, expressed confidence in the property market’s prospects for 2025. He noted that the sector has absorbed the impacts of ongoing geopolitical conflicts, which are no longer seen as critical threats unless significantly escalated.

Kourousides highlighted the potential for falling interest rates in 2025, which would further stimulate the property market.

Apartments: the main interest

Apartments remain the primary interest for both domestic and foreign buyers. Cypriots typically invest between €250,000 and €300,000, while foreign buyers often spend up to €500,000. This balanced demand serves as a key pillar supporting the Cyprus property market.

Cyprus house price index up 2.7% year-on-year

Nigel Howarth
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0
Cyprus house price index up 2.7% year-on-year

The Cyprus House Price Index (HPI) rose by 2.7 per cent on an annual basis in the third quarter of 2024 according to preliminary figures in a press release issued by the island’s Statistical Service (CYSTAT).

Compared to the second quarter of 2024, the HPI rose by 0.7 per cent in the third quarter.

The base year for the HPI is 2015=100 and the Index at the end of Q3 2024 stood at 110.65.

According to the CYSTAT, the Cyprus House Price Index (HPI) “is a quarterly index which measures the change in the average prices of residential dwellings. It captures all types of residential properties, both new and existing. The land component of the residential property is included.

“The data source used for both, indices and weights, is the Department of Lands and Surveys, Ministry of Interior. The data cover all areas which are under the control of the government of the Republic of Cyprus.

“Data are marked as provisional and are revised as soon as new information is available.”

In its press release, CYSTAT advised that “the data are stratified into two strata; old and new dwellings. For each stratum a rolling window hedonic regression model is used in order to calculate the sub-indices. Then, the sub-indices are weighted based on the sum of the value of the properties of each stratum in the previous year.”

Year Quarter House Price Index
(2015=100)		 Quarterly Change
(Compared to the
previous quarter) (%)		 Annual Change
(Compared to the same quarter
of the previous year) (%)
2010 Q1 114.37 -1.6 -6.6
Q2 112.79 -1.4 -6.9
Q3 112.39 -0.4 -5.7
Q4 112.05 -0.3 -3.6
2011 Q1 111.56 -0.4 -2.5
Q2 113.99 2.2 1.1
Q3 111.22 -2.4 -1.0
Q4 107.60 -3.2 -4.0
2012 Q1 106.40 -1.1 -4.6
Q2 106.02 -0.4 -7.0
Q3 110.14 3.9 -1.0
Q4 108.22 -1.7 0.6
2013 Q1 104.54 -3.4 -1.7
Q2 104.77 0.2 -1.2
Q3 103.05 -4.7 -9.3
Q4 100.78 0.9 -6.9
2014 Q1 98.08 -2.7 -6.2
Q2 103.55 5.6 -1.2
Q3 102.70 -0.8 2.8
Q4 101.56 -1.1 0.8
2015 Q1 97.52b
Q2 100.59 3.1
Q3 102.49 1.9
Q4 99.40 -3.0
2016 Q1 97.29 -2.1 -0.2
Q2 99.18 1.9 -1.4
Q3 101.87 2.7 -0.6
Q4 102.72 0.8 3.3
2017 Q1 99.64 -3.0 2.4
Q2 102.74 3.1 3.6
Q3 102.46 -0.3 0.6
Q4 105.24 2.7 2.4
2018 Q1 103.10 -2.0 3.5
Q2 104.01 0.9 1.2
Q3 103.12 -0.9 0.6
Q4 107.04 3.8 1.7
2019 Q1 107.93 0.8 4.7
Q2 112.73 4.5 8.4
Q3 105.64 -6.3 2.4
Q4 106.51 0.8 -0.5
2020 Q1 109.13 2.5 1.1
Q2 109.48 0.3 -2.9
Q3 104.21 -4.8 -1.3
Q4 109.10 4.7 2.4
2021 Q1 102.82 -5.8 -5.8
Q2 104.07 1.2 -4.9
Q3 106.55 2.4 2.2
Q4 103.28 -3.1 -5.3
2022 Q1 103.95 0.5 1.1
Q2 106.35 2.3 2.0
Q3 109.95 3.4 2.9
Q4 108.27 -1.5 4.7
2023 Q1 110.31 1.9 6.1
Q2 110.15 -0.1 3.6
Q3 110.65 0.4 0.6
Q4 109.95 -0.6 1.6
2024 Q1 111.53 1.4 1.1
Q2 112.86 1.2 2.5
Q3 113.62 0.7 2.7

b There is a break in the series in the first quarter of 2015 due to redefinition of the model variables.

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