Expat Stories: Real Life in Cyprus

1. Corporate Relocation & Business

"Under the Ministry of Finance BFU (Business Facilitation Unit), foreign companies can avoid the labour market test for work permits for Third Country Nationals... The company must offer a minimum salary of €2,500 ($2,700)."

Cyprus has positioned itself as the "Singapore of the Mediterranean." For corporate entities, the primary draw is the 12.5% corporate tax rate, one of the lowest in the European Union. However, the real advantage lies in the "IP Box Regime," which can reduce the effective tax rate on intellectual property profits to as low as 2.5%.

The Business Facilitation Unit (BFU)

Previously, hiring non-EU staff was a bureaucratic nightmare involving a "labour market test" to prove no European could do the job. The new Business Facilitation Unit bypasses this for eligible foreign-interest companies.

• Eligibility: Foreign shareholders must own >50% of shares, or invest at least €200,000 ($217,000 / £170,000).
• Speed: Company registration can now be completed in roughly 7 days.
• Staffing: You can hire Third Country Nationals (TCNs) freely if they are "Key Personnel" paid a minimum gross salary of €2,500/month.

Banking & Compliance

While setting up a company is fast, opening a corporate bank account is the bottleneck. Cypriot banks are extremely strict on compliance to shake off past reputations. Expect to provide detailed "Know Your Customer" (KYC) documents, including CVs of all beneficial owners and proof of source of funds.

2. Trust, Estate Planning & Asset Protection

Cyprus is a Common Law jurisdiction (a legacy of British colonial rule), making it legally compatible with the UK, US, Australia, and Singapore. This is critical for asset protection. Unlike civil law countries where "forced heirship" rules dictate who gets your money, Cyprus International Trusts (CITs) offer robust protection.

Cyprus International Trusts (CIT)

A CIT is a powerful vehicle for high-net-worth individuals moving to Cyprus. Key benefits include:

• Tax Exemption: Income and gains of a CIT are generally exempt from Cyprus tax if the beneficiaries are not Cyprus tax residents.
• Asset Protection: The trust is difficult to void by creditors (unless fraud is proven within 2 years).
• Confidentiality: There is no public register of trusts in Cyprus (though beneficial ownership registers are being implemented EU-wide, privacy remains high compared to other jurisdictions).

3. Wealth Management & Investment (The Non-Dom Status)

"If you become a tax resident of Cyprus without living there for at least 17 out of the previous 20 years, you could obtain non-domicile tax status which can bring significant benefits."

The "Non-Dom" (Non-Domicile) status is the crown jewel of Cyprus relocation for wealthy individuals. If you become a tax resident (spend 60+ days in Cyprus and have no tax residency elsewhere), you are exempt from the Special Defence Contribution (SDC) tax for 17 years.

The "Non-Dom" Financial Impact

The Golden Visa (Regulation 6.2)

For non-EU citizens wanting permanent residency immediately, the "Golden Visa" requires an investment of €300,000 ($325,000 / £255,000) + VAT in new residential property or commercial real estate. You must also prove an annual income of at least €50,000. This grants permanent residency to the investor, spouse, and children up to age 25.

4. Retirement Living

Cyprus is consistently ranked as a top retirement destination, not just for the weather, but for the specific tax treatment of foreign pensions.

The 5% Pension Tax

Foreign pension income is taxed at a flat rate of just 5% on amounts exceeding €3,420 per year.

• Example: If you receive a pension of $50,000/year. The first €3,420 is tax-free. The remainder is taxed at 5%. Total tax is approx $2,200.
• Lump Sums: Many retirement gratuities are tax-exempt.

Category F Visa (The Retirement Visa)

Non-EU retirees typically apply for the Category F Permit. This does not allow you to work.
Requirements:
• Annual income of approx €10,000 for the main applicant (plus €5,000 per dependent). *Note: Lawyers recommend showing significantly more, ideally €25,000+, to ensure approval.*
• Clean criminal record.
• Bought or rented property in Cyprus.

5. Digital Nomads & Remote Work

"If you are considering a Cyprus Digital Nomad visa, the government extended the previous limit of 500 digital nomad residence permits... New applications are now being accepted."

Cyprus introduced its Digital Nomad Visa to compete with Portugal and Spain. It allows non-EU/EEA nationals to reside in Cyprus while working for an employer registered abroad.

Digital Nomad Visa Requirements

• Income: Minimum net monthly income of €3,500 ($3,800 / £3,000). This increases by 20% for a spouse and 15% per child.
• Duration: Valid for 1 year, renewable for another 2 years.
• Family: Family members can accompany you but cannot work locally.
• Tax Residency: If you stay >183 days, you become a tax resident (triggering the Non-Dom benefits discussed above). If you stay >60 days but <183 days, you can still claim tax residency under specific "60-day rule" conditions.

Connectivity

Internet speeds in Cyprus have improved drastically with fiber rollout in major cities (Nicosia, Limassol). However, rural villages may still rely on slower 4G/DSL. Always check the specific address for fiber availability before signing a lease.

6. Lifestyle & Culture

The Cypriot lifestyle is defined by "Siga Siga" (Slowly, Slowly). It is a culture that prioritizes family, food, and coffee breaks over frantic productivity.

Where to Live?

Warning - Water Scarcity: As noted in local guides, Cyprus suffers from water scarcity. Most homes have a tank on the roof. You must be mindful of usage in summer, and water pressure relies on electric pumps.

7. A New Start: Jobs & Cost of Living

The Job Market

Unless you work in specific sectors (Forex, Fintech, Shipping, or iGaming), finding a job as a non-Greek speaker can be challenging. The local market is protectionist. However, international companies in Limassol are constantly hiring English speakers for sales, compliance, and IT roles.

Cost of Living Reality

Cyprus is no longer "cheap," but it offers value.

• Rent (1-bed city center): €700 - €1,200 ($760-$1,300) depending on the city (Limassol is highest).
• Utilities: Expensive. Electricity is high due to reliance on imported fuel/generators. Expect €150-€250/month in summer/winter due to AC/heating.
• Groceries: ~12% cheaper than the UK. Local produce is cheap; imported brands are expensive.

Source: Wise Cost of Living Data