Is it easy to move and is it comfortable to live in Cyprus in 2024?

Is Cyprus interesting for moving in 2024? Who is moving and for what purpose?

Over the past five years, about half a million people have moved to the Republic of Cyprus.

The country used to be constantly replenished with immigrants from the UK, Germany, Northern Europe, Russia, and Ukraine, but the boom in foreigners moving occurred in 2022-2023. The main reason: the Russian-Ukrainian and Palestinian-Israeli military conflicts, which forced people to look for a safe place for their business and for themselves personally.

In 2024, the wave of migration has noticeably calmed down, although there are still many people who want to settle on the hospitable island.

While the flow of Russians and Ukrainians has decreased, the flow of immigrants from Western Europe, in particular from Germany and the UK, on the contrary, is growing, as they seek more favorable tax conditions.

Low taxes for IT businesses and individuals are what has already brought thousands of technology companies and wealthy foreigners from all over the world to the Republic of Cyprus. The backbone of immigration is educated people with average and above average incomes. IT specialists have gradually formed their own community here.    

Pros and cons of living in Cyprus: medicine, education, transport, cost of living

The advantages of Cyprus can be listed for a long time.

1. Sea, sun, bright southern vegetation, pleasant weather most of the year.

The exception is July and August, when it is very hot.

2. Lifestyle.

The famous Cypriot "whitefish"-whitefish"relaxation, unusual for people from megacities, the ability to enjoy the moment, which expats also adopt, if you want to.

3. The quality of life.

Vegetables, fruits, dairy products, meat from local farms. You eat natural food, breathe clean, iodine-filled air, but at the same time use a developed urban infrastructure. It is getting better and more diverse, not without the participation of visitors!

4. The hospitality of the Cypriots.

The residents of Cyprus, for the most part, are open and friendly. The attitude of the locals towards immigrants is favorable, since the country is developing largely thanks to foreigners. The fact that 80% of the population speaks English makes communication between expats and islanders easier.

5. Safety.

The country has a very low crime rate.

6. Medicine.

Cyprus has both a public and a private healthcare system. Residents get access to the national GESY program, that is, to practically free high-quality medical services.

7. Education.

There are several international colleges in the country with teaching in English, after which you can enroll in universities abroad.

There are universities in Cyprus too, most of them are located in the capital: University of Nicosia, European University of Cyprus, University of Cyprus, Frederick University. The University of Nicosia is one of the hundred best higher education institutions in the world.

There are several Russian private schools in major cities.

A couple of years ago, when a lot of foreigners with children came to the island, there were catastrophically not enough places in schools and kindergartens. Now this issue has been resolved to a certain extent, as new educational institutions have appeared, including those opened by visitors.

The island has enough disadvantages too.

1. Transport.

Public transport in Cyprus is poorly developed, although the situation with it is beginning to improve. The main way to travel is by car. By the way, the distances here are small, and the quality of the roads is good.

2. The cost of living.

Cyprus is not a cheap country. Living on the island is more expensive than the European average. Prices for groceries, apartment rentals, and services are quite high, especially in Limassol. The approximate cost of living for a family of three or four people, excluding rent, is about 2500-3000 euros per month in Paphos or Larnaca and about 30% more in Limassol.

3. The way of life of Cypriots, related to the peculiarities of the climate.

The islanders begin to work early in the morning, and at the peak of the heat, from 13:00 to 16:00, they take a break, after which they start working again. Foreigners, as a rule, stick to their usual schedule, but they need to take into account the peculiarities of the local routine!

Locals are often optional and can fail without thinking much about the consequences.

Let's give it its due, there are also reverse examples when Cypriots are ready to give up their business and come to the aid of a foreigner in a difficult situation.

4. The services are not as well developed, and there are few events.

The island is an island. Foreigners who lived in the capitals before moving to Cyprus and spoiled by a variety of entertainment, begin to get bored here and are burdened by some provinciality. Exhibitions, concerts, festivals – it all happens, but not so often and not to such an extent.

What about the bank accounts of Russians in 2024?

The issue of bank accounts in Cyprus remains one of the most difficult for Russian citizens. In 2023, about 4,000 accounts were blocked, and by the end of 2024, many of them remain in this state.

Nevertheless, it is possible to open new accounts for citizens of the Russian Federation, although the procedure requires the provision of a full set of documents, including confirmation of the source of income and tax residency.

Difficulties with opening accounts and using them in Cyprus are experienced not only by Russians, but also by citizens of Belarus, Ukraine, Uzbekistan, Kazakhstan, and other post-Soviet countries. All of them go through the KYC (Know Your Client) banking procedure.

To sum up, opening an account may take time, but access to banking services, subject to compliance with all requirements, remains in Cyprus. One of the banks that open accounts for Russians is Revolut. It is most often used by those who need an account for obtaining a residence permit.

Popular ways of legalization in Cyprus in 2024

In 2024, Russians and citizens of other countries of the former USSR can choose several options for legalization in Cyprus. The most popular way to obtain a residence permit is through real estate investments. To participate in the program, you will need to purchase new residential or commercial real estate in the amount of 300,000 euros plus VAT. An investment residence permit opens a fast path to obtainingpermanent residence, which takes from six months to a year. Thus, in less than a year you become a lifelong resident of Cyprus!

The advantage of the program is that it is not necessary to open an account in Cyprus in advance to participate in it. The buyer transfers funds from his foreign account directly to the developer's account.

Other options for long-term stays:

• Residence permit through business relocation;
• Digital Nomad Visa for remote workers (income requirement of the applicant: 3,500 euros per month plus 20% for the spouse and 15% for each child);
• Permanent residence through investments not in real estate.

The procedures for obtaining a residence permit and opening a bank account can sometimes go in parallel. Many banks require a residence permit to open an account, but in some cases it is possible to obtain an account before legalization is completed.

Cyprus as a business platform: relocation and taxes

Cyprus remains one of the most attractive places to do business in Europe due to its tax policy.

In 2024, the income tax is only 12.5% (for comparison: the average in the EU is 19-20%), and for technology companies that use independently developed or purchased intangible assets such as patents, programs, intellectual property objects, the IP box tax regime applies. It allows you to reduce the effective tax rate to 2.5%.

Another plus is for non-domiciled tax residents (that is, those who have been tax residents for less than 17 years out of 20) there is no tax on dividends, tax on the sale of securities, wealth tax, inheritance tax.

You can become a tax resident of Cyprus if you live in the country for more than 183 days a year or according to the 60-day rule. The latter applies to those who are not tax residents anywhere, that is, they live in 3 or more countries without staying anywhere for the 183 days necessary to obtain the appropriate status. In order to use the 60-day rule and obtain tax residency, it is necessary to comply with some other conditions, for example, to have permanent residence in the Republic of Cyprus.

In addition to taxes, Cyprus offers other advantages: convenient location between Europe, Asia and Africa, strong entrepreneurial community, access to Europeanthe market.

The cost of renting and buying real estate in Cyprus in 2024

Prices for rent and purchase of housing in Cyprus depend on the city. Limassol is the most expensive, Paphos and Larnaca are more affordable, Nicosia and Famagusta are the most affordable.

Two years ago, rental rates jumped significantly due to the influx of immigrants, now they are slowly decreasing. Today, for example, you can rent a good 2-bedroom apartment in Limassol within 2,000 euros, although six months ago it was impossible to find a suitable offer for less than 3,000.

Rent an apartment 2+1:

Limassol: 1800–2500 euros per month,
• Paphos: 1200–1800 euros per month,
• Nicosia: 1000–1500 euros per month.

Buying an apartment 2+1:

• Limassol: from 350,000 to 600,000 euros,
• Pathos: from 250,000 to 400,000 euros,
• Nicosia: from 200,000 to 350,000 euros.

Conclusion

Moving to Cyprus in 2024 remains relevant for those who are looking not only for a new place to live, but also a platform for doing business. Despite some difficulties with bank accounts and high prices for real estate and accommodation, Cyprus is still an attractive country both for business development and for a high-quality family life.

 

Thank you for your help in preparing the material:

co-founder of a real estate developer in Cyprus VIDI Group Victoria Yatsyuta,

CEO DOM Real Estate Kirill Ravchenko