Take a Look at Cyprus

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Relocating to Cyprus

Cyprus is an island which is located in the eastern Mediterranean Sea. Is the third largest island within the eastern Mediterranean Sea with population of around 1 million and almost 20% being foreign nationals or expatriates.  Cyprus is not just a touristic hotspot, but an ideal place to establish a base for an entrepreneur as well. Cyprus is a member of European Union since 2004 with low taxes, simple company structure, good healthcare national system and good transport links to the rest of Europe and Middle East

EU Member State

The country as a member of the European Union have access to a single market and customs union because it offers the same rights as any other European country.  The island adopted the Euro since 2008 creating opportunities for further investments.

Sunny All-Year round

Weather

Cyprus has one of the warmest summer and winter climates in Europe. During the summer months and especially during July and August the average coastal temperature is around 35°C during the day and 25°C in the evening. Consequently, during summer months the weather is little uncomfortable for those who come from a cold, wet and rainy country but most months of the year offer very good temperatures.

Amazing beaches

A total of 65 beaches in Cyprus, as well as the Limassol Marina have received the prestigious Blue Flag award for 2019, reflecting their excellence in environmental education, management, water quality, safety and services. Many of them are ideal for water sports such as water skiing, kite surfing, wind surfing and water skiing. There are also ample diving opportunities with Cyprus offering many memorable dive sites such as the MS Zenobia wreckage.

Affordable

Low Cost of Living

The cost of living in Cyprus is low compared to other European countries. The average cost of rent is about €500 for an apartment of 65sqm and the cost for a meal is around €30 for two. If you are a lover of Greek and Middle Eastern food, you will find many traditional tavernas with offer good quality food at reasonable prices. People of Cyprus are well known for their friendliness, their loyalty and love for traditional food and their cultural heritage.

English Language

English is widely used across the island due to the high number of foreign entrepreneurs. All road signs, restaurant menus and governmental documents are available in English as well. All Cypriots are required from their age of 6 to learn English in school thus there isn’t a language barrier in the country. However, you will often hear a lot of different languages, especially across the entrepreneurial hotspots of the island.

Safe

Low Crime Rate

Even though Cyprus has been divided since 1974 due to the Turkish invasion, is one of safest European countries to live. Numbeo measured the safety of walking alone during daylight at 86,85%, very high, and of walking alone during night at 69,35%, high (last update July, 2020).

Tax Haven

  • Tax heavens are well known for granting the opportunity to foreign nationals for paying a lower rate of tax in comparison to what they have to pay in their native countries.
  • Cyprus could become highly beneficial compared to other countries despite the worldwide tax pressure and the Cypriot changes in tax structure over the years through a comprehensive tax planning. This is because Cyprus is highly dependent on its tourism industry and in order to mitigate its risk it offers an attractive tax incentive for entrepreneurs from around the world. 
  • In regards to corporation tax, the current rate is at 12,5% however dividend income is generally exempt from corporation tax. Like many countries expenses incurred for business purposes are also deductible.
  • Regarding personal income tax the most important thing is that the first €19.500 are not taxable and all individuals are allowed to benefited from their life insurance, medical insurance, subscriptions etc subject to conditions, such as the life/medical insurance should be in their names. 
  • No inheritance tax is applicable in Cyprus.
  • The tax residency status can be achieved from spending more than 183 days in Cyprus however due to the current remote world this status can be achieved more easily under the “60-day rule” which is effective as from 1 January 2017. 
  • Standard VAT rate in Cyprus is at 19% but reduced rates of 9% and 5% are applicable in certain cases

Financial Services

Cyprus adopted the personal information safeguarding laws. Personal information and details are only shared with local banks once opening an account but this is not obliged for having business in Cyprus. However, the banks are not obliged to share personal information with any other third parties outside Cyprus. Banking is the largest component of Financial Services in Cyprus and is regulated by the Central Bank of Cyprus. The banking system is harmonized with the EU legislation however commercial banking arrangements follow the British model with over 30 Cypriot and international banks operating throughout the island. There are no restrictions for foreign investors to access financing in Cyprus.

Information About Cyprus

Cyprus division since 1974

The island is split into two, the North which is controlled by Turkish and the South, the Republic of Cyprus. It is possible to cross the border but there are strict passport and vehicle checks.

Owning a house in Cyprus

The real estate market in Cyprus is growing as with the rest of Europe, however prices vary depending on the city.

Nicosia (Capital)

The capital city of Cyprus, Nicosia, is the largest of the 4 cities and is the only capital city in the world which is divided into two and has a “Green Line”. Nicosia is known for its cultural heritage, its large shopping malls and its bars, restaurants.

Limassol

The second largest city, Limassol, is located on the southern coast of the island. It is known for its large marina with bars, shops and restaurants. The city also has many museums and art galleries.

Larnaca

Larnaca is a tourist hotspot due to the international airport and its proximity to Ayia Napa which is known for its nightlife. Despite that, the city has beautiful golden beaches with seaside bars/restaurants with Mediterranean food.

Paphos

Paphos is the smallest city however with a beautiful harbor which is full of bars and restaurants. Paphos is the home of Aphrodite, the mythical Greek goddess of love and beauty. It offers a more of a relaxed atmosphere compared to the other three cities.

Transportation

Across the island, there is a bus service which links all the four cities as well as taxi services available across the island. However, taxi services are quite expensive it is advisable to pre-book and agree on the prices. If you are thinking about moving to Cyprus it is more cost effective to buy a car because you will have the opportunity to explore the island more easily.

Flights

There are direct flights to Cyprus from many European cities and Middle East countries. Island’s two major International Airports, Larnaca and Paphos, have routine flights to mainland Europe, the United Kingdom, Russia, Israel, Lebanon Jordan, Egypt, Qatar, the United Arab Emirates and Bahrain.