Why is Cyprus becoming increasingly attractive for relocation?

General overview

The Republic of Cyprus, located on the island of the same name in the very center of the Mediterranean Sea, attracts many migrants due to its exceptional climate and appealing living conditions. With a population of about 1.3 million people, Cyprus is known for its capital, Nicosia, as well as major cities like Limassol, Larnaca, Paphos, and Famagusta. The main international airports are located on the southeast coast in Larnaca and in Paphos on the southwest of the island.

Political situation

It is important to remember that since 1974, approximately 36% of Cyprus is under the control of the Turkish Republic of Northern Cyprus, which is not recognized by many countries around the world. From the perspective of integration into Europe, Cyprus has been a full member of the European Union since 2004.

Why Cyprus?

Why do so many people choose Cyprus as their relocation destination? The main factors, aside from the wonderful climate with over 320 sunny days a year and pristine beaches, are the economic and tax advantages that make Cyprus very attractive to foreign citizens.

Tax benefits for IT companies

Cyprus is particularly attractive for IT companies due to its favorable tax system. The IP Box program allows for a significant reduction in the corporate tax rate from 12.5% to 2.5% for firms that utilize innovative intellectual assets in their operations, such as patents or specialized software. This creates excellent conditions for:

• young entrepreneurs;
• professionals from various countries, including Russia, Ukraine, Germany, and Israel;

This contributes to the growth of the local IT community and the exchange of professional experience.

Tax residents

For foreign citizens staying in Cyprus for more than 183 days in a calendar year, there is an opportunity to become tax residents. This can bring significant benefits. For example, for residents who have lived in the country for less than 17 out of the last 20 years:

• there is no dividend tax;
• Property and inheritance taxes are also not levied.
• Income up to 19,500 euros per year is exempt from taxation.

Education in Cyprus

As for the education system, it is also at a high level. Cyprus offers a variety of international educational institutions, whose diplomas open doors to universities both on the island and abroad. Among the most well-known schools, we can highlight:

• Foley's School and Heritage School in Limassol;
• Pascal School in Nicosia;
• Grammar School in Limassol;
• American Academy and International School in Paphos.

Result

Thus, Cyprus attracts highly qualified specialists and their families due to its warm atmosphere, favorable business conditions, and high quality of life. This makes the country an ideal place for people seeking new opportunities, as well as for those who would like to enjoy a wonderful climate and rich culture. Cyprus is becoming not just a location for temporary stays, but a comfortable home for many foreigners who value the combination of professional growth and personal happiness.

Education for foreign children in Cyprus

In Cyprus, foreign minors with residency permits have the opportunity to easily enroll in one of the local public schools where classes are conducted in Greek. Additionally, there are educational institutions on the island that offer instruction in Russian.

In Limassol, there are three Russian schools, one of which is The Island Private School, and there is another one located in Paphos. In Paralimni, near Famagusta, there is an institution called Xenion Education, and in the capital, Nicosia, near the Russian embassy, there is another Russian school.

In these educational institutions, instruction is conducted in Russian with an emphasis on the English language. According to available information, several Russian investors are considering opening a new significant Russian-speaking school in Paphos.

The linguistic environment of Cyprus

It is important to note that over 80% of the population of Cyprus speaks English. This is due to the historical influence of Britain on the island, which is reflected in various aspects:

• Left-hand traffic
• Legal system
• Preferences in education, developed in the English model

The ability to speak English significantly simplifies interactions for those who do not speak Greek, eliminating the need to learn additional languages. In cities like Limassol and Paphos, there is a large Russian diaspora, which makes it easy to find people who speak the native language and are ready to communicate.

Safety and comfort

From the perspective of safety and comfortable living, Cyprus is considered one of the most prosperous and secure countries. Crimes are a rare occurrence. The locals are known for their friendly and hospitable attitude, which makes the adaptation process easier, as people share common mental frameworks and religious traditions — the majority of Cypriots practice Orthodoxy.

Sports opportunities

Cyprus also offers excellent conditions for sports and active recreation. A healthy lifestyle is promoted here, and in addition to swimming, running, and fitness, those interested can engage in sports such as:

• Tennis
• Yachting
• Diving
• Football
• Golf

The island even offers a ski resort located on the famous slopes of Olympus.

Disadvantages of living in Cyprus

Despite many advantages, this island nation has a number of drawbacks reported by its residents. One of the most significant is the underdeveloped transportation system, which makes owning a car almost essential (although for some, this may be seen as a positive aspect). Moreover, many immigrants from Russia and the CIS notice the serene pace of life on the island, known as "sega-sega," as locals often do not rush, whether at work or in everyday situations.

Cultural life in Cyprus

On this sunny and picturesque island, it is also difficult to expect a wide variety of cultural events and attractions that residents of large cities may be accustomed to. However, it is worth noting that popular artists and musicians often visit this region, which undoubtedly diversifies the cultural life of the local population and adds new colors to it.

Obtaining permanent resident status in Cyprus

There are several different ways to obtain permanent residency in Cyprus. Among them, the most effective and fastest method is to purchase a new property directly from the developer for a minimum amount of 300,000 euros.

It is important to remember that value-added tax (VAT) is added to this amount, which can be 19% or a reduced rate of 5% when purchasing a primary residence. Initially, a down payment of 200,000 euros will be required, and the remaining amount can be paid off in flexible installments, making it possible to settle within 1-2 years.

Investment opportunities

In addition to purchasing residential properties, one can consider the possibility of investing in commercial real estate, including the acquisition of existing projects. It is also permissible to invest in shares of local companies and mutual funds.

The resident status is granted to the main applicant as well as their immediate family members, including children up to 25 years of age and the parents of both spouses. It is worth noting that even after reaching the age of 25, children retain their status as permanent residents.

Conditions for maintaining permanent residency status

The process of obtaining permanent resident status is indefinite; however, it is necessary to maintain a connection with Cyprus by visiting the country at least once every two years to avoid losing the status.

After five years of obtaining permanent residency, you have the opportunity to apply for citizenship through the naturalization process. With a permanent residency card, you gain the right to travel freely to Cyprus and stay on the island for as long as you wish.

Travel and visa issues

However, this status does not allow for unrestricted travel to other European countries, as Cyprus is not part of the Schengen Area. Residents of Cyprus will need a visa to travel to countries that have signed the Schengen Agreement, which can be obtained through a simplified procedure.

It is important to note that citizens of Cyprus can travel freely to Schengen countries.

Banking services

Another important advantage of permanent residency status in Cyprus is the ability to open a bank account both on the island and in other European countries. Currently, for citizens of Russia and Belarus, this process can be quite complicated.

At the initial stage, having an account in a Cypriot bank is not mandatory, and payment for the property can be made directly from a current account in a Russian bank to the developer's account in Cyprus.

However, it is necessary to go through the procedure first.KYC (client verification), providing the Cypriot bank with information about their financial standing and the sources of funds used for the purchase.

The cost of medical services for those with a GESY policy is significantly lower. For example, a visit to the doctor will only cost 6-10 euros, while in other countries such services can cost you 50 euros.

Conditions for participation in the program

The conditions for participating in the Cyprus program are designed with the interests of investors in mind, allowing them to purchase up to two properties, with a total value exceeding 300,000 euros. It is important to remember that purchasing more than two properties is not allowed. Co-ownership is also possible, which allows for two applications for one property if its value exceeds 600,000 euros.

The key factor is the amount specified in the purchase agreement, which helps avoid confusion between the actual price and the cadastral value, something you might encounter, for example, in Turkey. If you decide to sell the apartment purchased through the program, your right to permanent residency will be revoked.

However, you can notify the immigration authorities in advance of your intention to sell one of the apartments in order to purchase another, provided that the new property will also cost more than 300,000 euros.

Real estate rentals

Real estate purchased through this program allows its owners to rent it out, which is a great way to generate income. For example, an apartment worth 300,000 euros can be rented for 1,700-2,000 euros per month, yielding a profit of about 5% per year.

Requirements for obtaining permanent residency

To obtain permanent residency, you must meet certain requirements, including the due diligence process — a verification of the reliability and legality of your income sources. If you have legal income, regularly pay taxes, have no criminal record, and are not on any sanctions lists, getting approval from the bank should not be too difficult.

• Confirm an income of no less than 25,000 euros per year.
• All funds intended for purchasing property must come to Cyprus from abroad.
• At the final stage before receiving the residency card, you will need to provide biometric data.

It should be noted that for obtaining any type of residency in Cyprus, the main applicant and all adult family members are required to provide a certificate of no criminal record.

Real estate market overview

According to real estate experts, the most sought-after properties are two-bedroom apartments and flats located in cities like Limassol and Paphos. Detailed information about the real estate market in these regions can be found in our special review.

The process of obtaining a residence permit

The process of obtaining permanent residency through investment takes about six months. If foreign entrepreneurs transfer their business to Cyprus or open a new startup here, both the company owners and their employees can apply for residency.

Requirements for employees

The employee must present a labor contract for a period of at least two years, as well as confirm their qualifications or relevant experience. Additionally, another important condition is having a salary of at least 2500 euros per month, while for managers, this threshold is a minimum of 4000 euros.

Thus, Cyprus offers numerous opportunities for those who wish to start a new life on this beautiful island and are ready to invest in their future.

Requirements for obtaining a residence permit in Cyprus

The company must be registered in Cyprus, and the founders are required to submit a carefully crafted business plan. It is also necessary to invest at least 200,000 euros in the operation of the company or to place these funds in a business account. Obtaining this type of long-term residence permit allows not only the applicant but also their spouse and children to have the right to permanent residence. Additionally, the candidate gains the opportunity to be employed in their own company.

Permanent residence of category F

Acquiring real estate in Cyprus or renting a property opens up the opportunity to apply for a permanent residence permit of category F, which is intended for financially independent individuals. However, this process has certain specifics:

• Children can remain under support until the age of 18, after which they lose the ability to claim this status.
• It will be necessary to prove the existence of income earned outside of Cyprus or passive income on the island.
• It is required to provide documents confirming that the applicant does not intend to work in Cyprus, even if he is a shareholder of his company.

Unfortunately, at the moment, documents for obtaining this type of permanent residency are often delayed in the migration services of Cyprus, and there is currently no information about their approval. Changes to the program are expected soon, which may open new opportunities for those interested, such as affluent retirees and digital nomads, allowing them to obtain residency again.

Temporary residence permit "pink slip"

Regarding the "pink slip" residence permit, owning property in Cyprus is desirable but not a strict requirement. It is also possible to apply with rented accommodation. This type of visa can be extended, but you need to visit Cyprus at least once every three months. To obtain the "pink slip," you must provide documents confirming a bank account balance of at least 10,000 euros. It is worth noting that, as of today, it is quite difficult for Russians and Belarusians to open such accounts.

New financial requirements

Since the beginning of 2022, new financial regulations have been introduced. Key points:

• The income per person should be at least 2000 euros.
• Additional requirements are being added – 20% for each spouse and 15% for each child.

Applicants must also meet medical requirements, which include having a certificate confirming the absence of HIV, sexually transmitted diseases, and hepatitis B and C. Upon arrival in Cyprus, all applicants and their relatives over the age of six must undergo an X-ray to check for tuberculosis.

Appointment for document submission

At the moment, it is difficult to schedule an appointment for submitting documents to obtain a "pink slip," as all time slots at the immigration office are booked 2-3 months in advance. Therefore, it is strongly recommended to seek assistance from experienced lawyers to address this issue. Due to the high volume of applications submitted, the review process itself may take significantly longer than expected – approximately 6-7 months.

Conclusion

The conclusion of our review on life and moving to Cyprus, as I believe, highlights the well-known advantages of this country while also addressing potential challenges.

Cyprus— it's not just sunny beaches and clear waters of the Mediterranean Sea, but also a unique place for business, especially in the field of information technology, where tax policies open up numerous opportunities for freelancers and companies. Many international schools address the educational needs of expatriate children, ensuring respect for cultural differences and incentives for language learning.

Unconditional securityThe islands, the friendliness of the locals, and the opportunity to relatively quickly integrate into society provide compelling reasons to live in Cyprus. Sports activities and various leisure options contribute not only to physical but also to emotional well-being, offering the chance to enjoy a fulfilling life.

Nevertheless, it's important to be prepared for some difficulties.

• The feeling of relaxation in the local rhythm of life.
• Lack of developed public transport infrastructure.

These factors can be significant for those who are used to a rapidly changing urban environment. Therefore, before making a decision to move, it is important to consciously weigh all aspects.

In general, for those looking for a new chapter in life, Cyprus can be an ideal option with its mild climate, modern business opportunities, and high standards of living. I hope this extensive overview helps readers better understand what awaits them in this sunny corner of the world and how to make the right choice based on their own preferences and life circumstances.