Expats Moving to Cyprus

Cyprus has become a popular destination for expats due to its favorable climate, welcoming culture, and advantageous financial and lifestyle conditions. Due to the complicated nature of taxation, it is crucial that you understand the taxation criteria and how it will impact your move to Cyprus as a whole.

Tax Advantages

1. Personal Income Tax: Cyprus offers relatively low personal income tax rates compared to other European countries. The tax rates are progressive, ranging from 0% to 35%. The highest rate applies to income exceeding €60,000.

2. Corporate Tax: The corporate tax rate is 12.5%, which is competitive compared to other EU countries. Cyprus also has various tax incentives for businesses, including IP (Intellectual Property) box regimes that offer favorable tax treatment.

3. Non-Domicile Status: Cyprus has a non-domicile regime which is attractive for expats. Non-domiciled individuals are exempt from certain taxes, including those on worldwide dividend and interest income, which can be a significant advantage for high-net-worth individuals.

4. Double Tax Treaties: Cyprus has a wide network of double tax treaties with many countries, which helps to avoid double taxation on income and can make tax planning more efficient.

Cost of Living

1. Housing: The cost of housing can vary significantly depending on the location. Cities like Nicosia, Limassol, and Larnaca generally have higher rental and property prices. Coastal areas and tourist hotspots tend to be more expensive, while rural areas are more affordable.

2. Utilities and Groceries: Utilities such as electricity, water, and internet are relatively affordable. Grocery prices are generally reasonable, but imported goods can be pricier.

3. Transportation: Public transport is available, but many expats choose to drive. Fuel prices are higher than in some other countries, but car ownership is relatively inexpensive compared to other EU countries.

4. Dining Out: Eating out can be quite affordable, with a range of options from budget-friendly to high-end restaurants. Local cuisine is both delicious and reasonably priced.

Healthcare

1. Public Healthcare: Cyprus has a public healthcare system that offers basic medical services at low cost. However, the system can be under strain, and waiting times might be longer for certain procedures.

2. Private Healthcare: Many expats opt for private healthcare, which is widely available and generally of high quality. Private hospitals and clinics offer quicker access to specialists and treatments, and many have modern facilities.

3. Health Insurance: Health insurance is advisable for expats to cover private healthcare costs. Many insurance companies offer plans specifically tailored to expatriates living in Cyprus.

4. EU Health Insurance: If you are from an EU country, you might be able to use your European Health Insurance Card (EHIC) for some healthcare services. However, this is generally limited and might not cover all the costs, especially if you opt for private care.

Additional Considerations

- Language: English is widely spoken in Cyprus, especially in business and tourist areas, which can make the transition easier for expats.

- Climate: Cyprus enjoys a Mediterranean climate with hot summers and mild winters, which many find appealing.

- Culture: Cypriots are known for their hospitality and friendliness, and the island has a rich cultural heritage with many festivals and events throughout the year.

Overall, Cyprus offers a good quality of life for expats with its blend of tax advantages, affordable cost of living, and accessible healthcare.

Cyprus offers several appealing cities for expats, each with its own unique advantages. Here’s a look at some of the best cities for expats on the island:

1. Limassol

- Economic Hub: Limassol is Cyprus's financial and business center, attracting many international companies and professionals. It’s also a popular destination for digital nomads.

- Lifestyle: The city offers a vibrant lifestyle with a mix of cultural events, nightlife, and leisure activities. The marina and beachfront are particularly popular.

- Amenities: Limassol boasts excellent amenities, including international schools, high-quality healthcare facilities, and a wide range of dining and shopping options.

- Real Estate: The property market is diverse, with options ranging from luxury seafront apartments to more affordable inland housing.

2. Nicosia

- Capital City: As the capital of Cyprus, Nicosia is the administrative and political center. It has a rich history and offers a blend of old and new.

- Business Opportunities: It’s a key location for business and government institutions, which may be advantageous for professionals in these fields.

- Cultural Scene: Nicosia has a vibrant cultural scene with museums, galleries, and historic sites. The old town, with its traditional architecture, is a highlight.

- Cost of Living: Generally, Nicosia has a slightly lower cost of living compared to Limassol, particularly in terms of housing.

3. Larnaca

- Tourist-Friendly:Known for its beautiful beaches and relaxed atmosphere, Larnaca is popular with tourists and expats looking for a more laid-back lifestyle.

- International Airport: It’s home to the main international airport in Cyprus, which is convenient for travel.

- Community: The city has a growing expat community, with a range of international schools and healthcare options.

- Cost of Living: Larnaca is generally more affordable than Limassol and Nicosia, making it a good option for those seeking a balance between cost and lifestyle.

4. Paphos

- Scenic Beauty:Paphos is known for its stunning coastal views and historical sites, including ancient ruins and UNESCO World Heritage sites.

- Relaxed Lifestyle: It offers a more relaxed pace of life compared to Limassol and Nicosia, which can be appealing for retirees or those seeking a quieter environment.

- Expats: Paphos has a significant expat population, particularly from the UK, and offers a range of community services and amenities catering to foreigners.

- Real Estate: Property prices are generally lower compared to Limassol, offering more value for money, especially for those looking to purchase property.

Considerations for Choosing the Best City

- Employment Opportunities: If career prospects are a priority, Limassol and Nicosia might be better choices due to their economic and business activities.
- Lifestyle Preferences: For a cosmopolitan lifestyle with vibrant nightlife, Limassol is ideal. For a quieter, more historical setting, Paphos is preferable.

- Cost of Living: Larnaca and Paphos tend to offer a more affordable cost of living compared to Limassol and Nicosia.

- Accessibility: If frequent travel is important, Larnaca’s proximity to the airport could be advantageous.

Each city has its own unique charm and benefits, so the best choice depends on your personal preferences, lifestyle needs, and professional goals.

Gaining residency in Cyprus involves several pathways, depending on your nationality, purpose of stay, and financial status. Here’s a comprehensive guide on the various types of residency statuses in Cyprus:

1. Temporary Residence

EU/EEA/Swiss Nationals

- Requirements: EU/EEA/Swiss citizens can stay in Cyprus for up to 90 days without a visa. For longer stays, they need to apply for a Temporary Residence Permit.

- Application: You need to apply for a residence permit at the Civil Registry and Migration Department. Requirements typically include proof of sufficient financial means, health insurance, and a local address.

Non-EU Nationals

- Requirements: Non-EU nationals need to obtain a visa for stays longer than 90 days. You can apply for a Temporary Residence Permit under various categories:

- Employment: If you have a job offer or work contract in Cyprus.
- Study: For students enrolled in a Cypriot educational institution.
- Family Reunification: To join a family member residing in Cyprus.

2. Permanent Residence

EU/EEA/Swiss Nationals

- Requirements: After residing in Cyprus continuously for five years, EU/EEA/Swiss citizens can apply for Permanent Residence. They must demonstrate stable and regular income, health insurance, and a clean criminal record.

Non-EU Nationals

- Category F: Non-EU nationals can apply for Permanent Residence under Category F if they:
- Have held a Temporary Residence Permit for at least five years.
- Demonstrate stable financial resources without the need for employment in Cyprus.
- Have a clean criminal record.
- Prove that they have sufficient funds to support themselves and their dependents.
- Maintain a permanent residence in Cyprus.

- Investment-Based Residency: Cyprus also offers a Permanent Residency Permit through the Cyprus Investment Program, which has specific investment criteria. This typically involves investing a significant amount (usually at least €300,000) in real estate or other approved sectors.

3. Citizenship

EU/EEA/Swiss Nationals

- Pathway: After five years of continuous residence, EU/EEA/Swiss nationals can apply for Cypriot citizenship through naturalization, provided they meet residency and integration requirements.

Non-EU Nationals

- Cyprus Investment Program: This program allowed for expedited citizenship through significant investment, but it has faced scrutiny and changes. Always check the latest regulations or consult legal advice for current status.

- Naturalization: Non-EU nationals can apply for citizenship after seven years of continuous residence (reduced to five years if they have a Cypriot spouse) and if they meet integration criteria, including language proficiency and knowledge of Cypriot culture.

General Requirements for Residency Applications

- Proof of Identity: Valid passport and, for non-EU nationals, a visa if required.
- Financial Means: Evidence of sufficient financial resources to support yourself and any dependents.
- Health Insurance: Proof of valid health insurance coverage.
- Local Address: Evidence of a permanent address in Cyprus.
- Clean Criminal Record: A police clearance certificate or similar document.

Additional Notes

- Temporary Residency Cards: Usually issued for one to two years and renewable.
- Permanent Residency Cards: Typically issued for ten years and renewable.

The requirements and procedures can change, so it’s wise to check the latest information from the Cyprus Civil Registry and Migration Department or work with our experts to help you to streamline this process, providing valuable insights and tailored strategies to ensure successful outcome. Don’t hesitate any longer. Apply to become a client today to work with our experts on legal strategies to overcome barriers.

Indotco International

Expats Moving to Cyprus