The Many Benefits Of Moving To Cyprus

With a wonderful sun-filled climate, stunningly varied scenery and friendly hospitable people, it’s easy to see why Cyprus is emerging as a leading location for Britons looking to retire away from the UK.  Dubbed the ‘Island of Love’ and known by many as ‘The Birthplace of Aphrodite’, this beautiful island is currently enjoying it’s status as the popular retirement destination, and there has never been a better time to move to Cyprus.  With a population of approximately 750,000, this historic isle offers a high quality of life at a relatively low cost of living, with a couple being able to attain a comfortable lifestyle on as little as CY£6000 a year. 

Property in particular is proving exceptional value in comparison to other European nations.  Enjoying an unhurried pace of life, with emphasis on family and friends and the simpler pleasures in life, those choosing to relocate to this enchanted island will be welcomed with true warmth by the people of the Cyprus.  Cyprus has bucked the dismal European property market trend in the past two years, with tourists as the catalyst.  Rules on buying property are straightforward, because the land registry system offers security of title and protection of ownership, and there are none of the rates or other heavy charges (e.g. taxes) on property in Cyprus that exist in most other countries.  With Cyprus’ recent admittance to the EU, alongside its rapid growth in popularity and the fast development of its thriving expatriate community, these prices almost certainly look set to rise dramatically.

There are many reasons why Cyprus is a logical choice if you are relocating or buying a holiday home.  Cyprus enjoys very strong ties with the UK.  It is a republic based on a constitution written after independence from the British who still maintain Sovereign bases on the island.  Human rights and private property are safeguarded by the constitution, and Cyprus is a member of the UN, the commonwealth, The Council of Europe and now the EU.  Though Greek is the official language, over 90% of locals speak English making your transition to the Cypriot way of life immeasurably easier.  In addition to its superb climate, averaging 340 days of sunshine a year, its wonderful beaches and delicious cuisine, Cyprus life also benefits from a clean environment and very low crime rate.  Cyprus also enjoys excellent amenities including a fine health service together with relatively inexpensive private healthcare, a banking system that closely follows the British pattern, and many duty free shopping benefits for their residents.  Another advantage is that Cypriots drive on the same side of the road as the British, eliminating those early driving jitters!

Purchasing a new property can be a time-consuming and strenuous activity, and it is completely understandable that the prospect of buying a property abroad can be a very daunting one.  As well as making a decision on the country you want to live in, there are also decisions to be made on the area you want to move to within that country and on the type of property you wish to buy.  There are many wonderful parts of Cyprus to relocate to, each with their own charm and each offering a different style of living.  In fact one of the great pleasures of living in Cyprus is having such a wide range of landscapes, terrains and paces of life within a relatively small area.  So whether you want a quiet mountain lifestyle in the Troodos Massif, or a villa with pool by the beach in Larnaca, there is something for everyone in Cyprus.  

Retiring to Cyprus offers many benefits to the British expatriate.  Compared to many countries, buying property in Cyprus is relatively easy.  The law regarding buying property in Cyprus has changed recently, allowing a non-Cypriot resident to buy unlimited properties on the island.  Legal fees when purchasing a property in Cyprus are very low, and with the legal system and Land Registry in Cyprus being based on both British and Greek legal systems, it is considered to be one of the most advanced and reliable systems in the world. 

The property buying process is remarkably straightforward.  On signing a contract of sale for your property and paying a deposit, it is necessary to make an application to the Council of Ministers to grant approval for a non-Cypriot to acquire immovable property.  A residence permit must also be applied for, but this is easy to obtain if you are purchasing a property.  Your conveyance contract must then be filed with the land registry, protecting the ownership rights by preventing the vendor from selling the property a second time.  Only the buyer can alter this status, making purchasing property in Cyprus a safe and attractive option.  When purchasing your property in Cyprus, it is a requirement to pay for your property in foreign currency.  Transfer of funds can be costly and it is advisable to do this through a currency broker.  Non-Cypriot citizens may open both foreign and local currency accounts, and many international banks have branches in Cyprus. 

Another benefit of moving to Cyprus is that one’s personal effects can be imported duty-free (with only a small fee being levied on electrical goods).  You can even bring your dog or cat into the country with less hassle, as quarantine in Cyprus takes place in your own home providing all their vaccinations are complete.  Another important factor is Cyprus’ accessibility, with two International airports and many cheap chartered and scheduled flights throughout the year, making family visits easy and inexpensive.  And with the demand for property in Cyprus growing constantly, in the unlikely event you decide Cyprus life is not for you, re-sale of your property will be effortless.  

It is also a popular destination for active retirees due to the fact that there are a large number of double taxation treaties in place, enabling retirees to receive private and public pensions and investment income in Cyprus free of withholding tax.  UK citizens may take advantage of the Double Taxation Treaty existing between the UK and Cyprus.  The remittance system compares extremely favourably with the tax system used in many other popular sunspots such as Spain.  Recent tax reforms have sharply reduced the tax burden and foreign residents are now taxed on a flat basis of 5% per-annum on pension income over £2000.  There is 0% on investment income (i.e. dividends & interest) brought into Cyprus.  Consequently, the total tax burden on immigrating residents is often only 3% in practice.  This compares extremely favourably with competing destinations where property owners are subject to high tax exposure levels of up to 60%. 

The UK state pension paid to retirees in Cyprus is, by virtue of the Reciprocal Social Services Agreement between UK and Cyprus, index linked.  That means your UK state pension received in Cyprus will increase every time it is increased in the UK and by the same amount.  You would also be eligible for winter fuel payments.  This valuable benefit of an effectively index linked state pension, and other state benefits, would not be available if you retire to the occupied part of Cyprus i.e. Northern Cyprus and not available if you retire to Australia, New Zealand, Canada or South Africa to name a few countries.  In other words your pension would be ‘frozen’.  As an example of the effect of inflation on a frozen pension, somebody retiring to Australia on a state pension of £200 a week would see that pension diminish in purchasing power to £110 a week after 20 years at an inflation rate of 3%.

The Cypriot government encourages those wishing to retire to Cyprus.  There is an efficient and well-maintained infrastructure in place, and although it has shied away slightly from the 'offshore' image it once had, and has been forced to implement some changes to its legislation in order to satisfy the OECD, it is still generally regarded as a safe and secure location in which to do business or reside.