MOVING TO LIVE IN CYPRUS: RESIDENCE GUIDE
On this page, we discuss CYPRUS, a country to which we are linked professionally and by long experience and direct exposure to the diverse areas of Larnaca, Limassol, Paphos and the capital Nicosia
Are you planning to move to Cyprus for living, doing business, and investing?
TABLE OF CONTENTS
- MOVING TO LIVE IN CYPRUS: RESIDENCE GUIDE
- HOW TO CHOOSE A COUNTRY
- CYPRUS RELOCATION, A GEO-POLITICAL CONTEXT
- COME HOW TO APPLY FOR CYPRUS RESIDENCY
- HEALTHCARE ASSISTANCE AND PENSION
- EXPATRIATION WITHOUT BORDERS
HOW TO CHOOSE A COUNTRY
When choosing a country, whether it be
- of Expatriation,
- of Investment,
- of domiciling a business and a company,
- of opening a market,
- to carry out one’s professional activity,
- to transfer one’s pension or
- to be a digital nomad in smart working,
we have developed a model covering
6 macro-areas from the Geo-Political to the Macro-Economic situation, to then identify the well-known fiscal or regulatory issues
both in relation to individuals and to corporate or asset protection structures.
We offer a highly qualified professional advice, to compare the legal, tax, wealth, regulatory, financial, macro-economic, geo-political implications of these choices amongst different jurisdictions, considering the country of choice to be a fiscal resident, to locate assets, to domicile a company
CYPRUS RELOCATION, A GEO-POLITICAL CONTEXT
CYPRUS is certainly an interesting country to consider moving to live in.
To evaluate a country to expatriate to professionally, one has to take several elements into account, as we have already done when considering a move to Spain or Portugal.
Certainly, CYPRUS is an interesting country with a favorable Mediterranean climate, very sunny and with mild winters, with long welcoming beaches and a transparent sea, with an advantageous tax system, with a very international environment where the English language is widespread but not the official language as Greek and Turkish actually are.
Cyprus is an island a little over 1/3 the size of Sicily, with a length of 195 km and a maximum width of 85 km, located close to the coasts of Turkey and Syria, geographically much closer to the Asian continent than to Europe.
The Republic of Cyprus has been a member of the European Union since 2004. The currency is the Euro.
The island is divided into two separate parts, namely a part under the control of the Republic of Cyprus (about 59% of the surface area of the island) and a part in the north occupied since 1974 by the self-proclaimed Turkish Republic of Northern Cyprus, which is not recognised by the international community (about 36% of the surface area of the island).
There are also two British military bases still on the island under British sovereignty. On the island, as a result of the long rule and administration of the British Empire, people speak a lot of English and drive on the left as in England.
The population, about 1,200,000, is also basically divided into two ethnic groups with Greek Cypriots living in the south (about 865,000) and speaking Greek and Turkish Cypriots living in the north and speaking Turkish.
Risks related to the country’s geographical location and internal political situation must be taken into account when considering relocation as a person, business, or for capital transfer or investment, particularly regarding its macro-economic frame.
The capital is Nicosia, which is located inland, while other known countries are Limassol, Paphos and Larnaca.
The first problems to face in a move abroad are certainly those of renting or buying a house and acquiring residency.
When moving to a country, it is necessary to check how to transfer residence from a civil registration point of view and how to acquire foreign tax residence
COME HOW TO APPLY FOR CYPRUS RESIDENCY
As for all European countries, after the 90-day stay, one must register to formalise residence in the country as a European citizen.
You must apply to the Immigration Unit responsible for where you live, as a citizen of a European member country, for a work permit or work permit and temporary residence called a yellow slip (a document printed on yellow paper) proving that you have an income from employment or self-employment, or savings that allow you to support yourself independently. The permit lasts for five years and is renewable. It can also be extended to additional family members.
As an Italian citizen or country with similar regulatory registry, it is also necessary to register with AIRE, which I have already discussed at length in the guide to AIRE registration.
You are considered to be resident for tax purposes in Cyprus if you spend more than 183 days a year or, if you have stayed for at least 60 days, if certain requirements are met, i.e. if you have a rented or owned home, if you have a business or duties in the country, if you have moved your family and do not have your tax residence in another State.
In Cyprus one acquires temporary residence as a non-domiciled person, with a territorial taxation regime with undoubted tax advantages very similar to the non-domiciled taxation in force in Malta.
HEALTHCARE ASSISTANCE AND PENSION
The healthcare system in Cyprus has recently been reorganised to increase quality and efficiency.
One is entitled to “free” healthcare by paying the relevant contributions.
For the National Health Service as an employee you pay 2.65 % of your salary while your employer pays 2.9 %.
As self-employed person, you pay 4 % of the income received.
In addition, for persons with capital income (rents, interest, dividends) the tax is 2.65 %.
Moreover, as an employee you pay pension contributions of 8.3 % of the salary while the employer pays 20 %.
As self-employed persons you pay 15.6 % of the income received.
EXPATRIATION WITHOUT BORDERS
Maltaway: Our knowledge of the World as a factor in your success!
HOW TO CONSIDER THE OPPORTUNITIES OFFERED BY DIFFERENT COUNTRIES?
What do we need to check to assess a jurisdiction in addition to its macro-economic situation, regulatory profile, taxation conditions, cost of living, health system, climate, resident population, connections for people and goods
HOW TO REDUCE COUNTRY RISK?
What can we do to manage and reduce Country, Banking, Regulatory, Pension, Financial, Occupational, Health, and Geographic RISK?
Expatriating, and transferring your residence, business or assets abroad means improving your risk management and taking advantage of the opportunities that different countries offer.
A personalised professional expatriation consultancy service for the choices of expatriation, transfer of residence abroad and the protection of individuals and businesses with a comparison and coverage of between of the best jurisdictions in the World and 30+ countries
with an analysis of specific individual needs and identification of the opportunities and solutions offered by a redomiciliation of oneself or one’s assets or business, an International Advisory service with the solutions and opportunities of expatriation with respect to your country and other countries in Europe or outside Europe
For all your legal, tax, corporate governance and residence advice needs for individuals and businesses, contact us here