When considering a move to the picturesque island of Cyprus, there are a few key things to keep in mind. Known for its idyllic climate, ample housing options, and ample job opportunities. Cyprus has become a popular destination for digital nomads. However, it’s important to prepare yourself for any potential challenges that may arise during your relocation. To ensure a smooth transition, here are a few things to keep in mind before packing your bags and making the journey to this Mediterranean jewel.
Visa Regulations
When planning a visit to the island of Cyprus, it’s important to be aware of the visa regulations that apply to your specific situation. If you are a citizen of an European Union country, a member of the EEA, or Switzerland, you will not need a visa for stays of up to three months. However, if you plan to stay longer than that, you will be required to obtain a Registration Certificate for EU Nationals, commonly referred to as a “yellow slip”. On the other hand, citizens from outside the EU, EEA, or Switzerland will need to apply for a visa in order to enter Cyprus.
Cost of Living
Source: https://livingcost.org/cost/cyprus
When comparing the cost of living in Cyprus to other European countries, it is generally considered to be relatively affordable. Many everyday items can be found at prices that are 20-50% cheaper than in the UK. Additionally, the overall cost of living in Cyprus is about 25% lower than the European average, making it a cost-effective option for those considering a move. One of the main reasons why the cost of living in Cyprus is low is because of its low income tax rate, which is one of the lowest in the European Union. This, along with other factors, makes Cyprus an appealing choice for those considering moving there.
Healthcare
Cyprus offers a healthcare system that is comparable to those found in most EU countries. Patients have the option to choose between private and public healthcare options. One of the benefits of the healthcare system in Cyprus is that emergency services are available to all, regardless of citizenship. Additionally, many medical professionals in Cyprus have received their education abroad, which means that many doctors and nurses are able to speak English. Additionally, all major cities in Cyprus have both state-run hospitals and clinics, ensuring that quality healthcare is widely available. Lastly, there is no vaccination requirement to move to Cyprus.
Culture and Safety
When living in Cyprus, there are a few things to keep in mind. The island is divided into two main regions, North and South Cyprus. The Northern region is primarily inhabited by Turkish speakers and is only officially recognized by Turkey, while the Southern region is primarily Greek-speaking and is officially recognized as the Republic of Cyprus. Despite the political division, Cyprus is a safe place to reside with a low criminal rate. Additionally, while most people in Cyprus speak English, it can be beneficial to learn the local language. Lastly, for retirees from the UK, it’s worth noting that British pensions can also be received in Cyprus, allowing you to enjoy the lower cost of living and pleasant climate.
Understanding the Favorable Tax Regime and How to Become a Tax Resident
Cyprus offers a favorable tax regime for individuals and businesses. One of the main advantages is the non-domiciled taxation status, which allows individuals to be exempt from taxes on income from dividends, interest, and rental income, regardless of the location of the source. Additionally, income from employment carried out outside of Cyprus is also exempt from Cyprus income tax, provided that the employment is exercised outside of Cyprus for more than 90 days per tax year. However, proper structuring of your business is necessary to avoid triggering unwanted Permanent Establishment or CFC rules.
The non-domiciled taxation regime is valid for 16 years and Cyprus has also agreed on double taxation treaties with over 60 countries to avoid double taxation. To become a tax resident in Cyprus, an individual must spend 183 days in Cyprus, or 60 days in Cyprus and not spend more than 183 days a tax year in any other country, not be a tax resident anywhere else, carry out any business or be employed in Cyprus, and maintain a permanent residential property in Cyprus.
For individuals unable to spend 183 days in Cyprus, forming a company in Cyprus is a mandatory requirement. Cyprus has a low corporate tax rate and a favorable corporate tax system. The process of forming a company and becoming a tax resident in Cyprus can take up to six months and requires the submission of company and personal information, as well as payment of a salary and mandatory social contributions, obtaining a Social Security Number, opening a corporate bank account, and obtaining an employment permit and temporary residence. The process is the same for EU and Non-EU citizens, but Non-EU citizens must also obtain a relevant visa and permit.
Renting an Office in Cyprus: Coworking Spaces, Commercial Offices and Virtual Office Solutions
If you’re looking to rent an office in Cyprus, there are a few options available. Renting a private office space in a coworking facility can be a cost-effective option for small businesses or entrepreneurs. Renting a commercial office space in a traditional office building can be a good choice for larger businesses or those who require a dedicated space. Additionally, you can consider a virtual office in Cyprus which can give you an address, phone and fax number, mail forwarding services, and an answering service without renting a physical office. It’s important to research the different options available and consider factors such as location, cost, and your business needs before making a decision.
Renting a virtual office in Cyprus has many benefits for your business. Here are just a few:
- Cost-effective: A virtual office is more affordable than leasing a traditional office space.
- Flexibility: Virtual offices allow you to work from anywhere while still maintaining a professional business address in Cyprus.
- Access to services: Many virtual office providers offer services such as mail and package handling, telephone answering, and meeting room access.
- Increased credibility: A virtual office in Cyprus can give your business a prestigious address and local presence, increasing credibility with clients and partners.
- Time-saving: With virtual office you can save time and effort of setting up a physical office space and can focus on your business.
Buying or Renting an Apartment in Cyprus: Key Factors to Consider
When looking to buy or rent an apartment in Cyprus, location, budget and property condition are key factors to consider. Popular areas for expats include Limassol, Paphos and Nicosia. It’s important to have a clear budget in mind and to work with a reputable real estate agent. When buying, additional costs such as property taxes and maintenance fees should be taken into account. When renting, lease terms, additional costs, and restrictions should be considered. Overall, buying or renting in Cyprus can be a great opportunity for those looking for a Mediterranean lifestyle, but research and planning are important.
When living in Cyprus, there are a few things to keep in mind. The island is divided into two main regions, North and South Cyprus. The Northern region is primarily inhabited by Turkish speakers and is only officially recognized by Turkey, while the Southern region is primarily Greek-speaking and is officially recognized as the Republic of Cyprus. Despite the political division, Cyprus is a safe place to reside with a low criminal rate. Additionally, while most people in Cyprus speak English, it can be beneficial to learn the local language. Lastly, for retirees from the UK, it’s worth noting that British pensions can also be received in Cyprus, allowing you to enjoy the lower cost of living and pleasant climate.
If you’re interested in holidaying, renting an office or buying/renting an apartment in Cyprus, Holidayzer is here to help. Our team of experts has the knowledge and experience to guide you through the process, from finding the perfect location to ensuring that all legal requirements are met. We are dedicated to providing you with the best possible service, and we will work closely with you to ensure that your experience is a positive one. Contact us today to learn more about how we can help you with your holiday, office rental or property purchase/rental needs in Cyprus.
Cyprus is a fantastic destination for those considering emigrating. With its beautiful beaches, delicious cuisine, and warm climate, it offers a unique and enjoyable lifestyle. Additionally, the country is a great place to start a business or invest in real estate. With its growing economy and low taxes, it’s no wonder more and more people are choosing to make Cyprus their new home.
