Cyprus has its own word for hospitality: Flinoxia. This is culturally, almost an obligation based on ancient Greek traditions to make guests welcome, and indeed Aphrodite’s birthplace will make you truly fall in love and feel like you’re at home. Cyprus has magnificent beaches all over the place, a thriving foodie culture with some of the best restaurants in Europe, over 100 wine trails, amazing natural historical and cultural events, and a shop-till-you-drop culture intermingled by some of the best coffee houses on earth.

Cypriots of all incomes and professions work to live rather than live to work. Life is relaxed, happy, and unstrained by the world's problems. Cyprus has been around since the birth of the Greek gods. The islands have seen gods, emperors, kings, wars, economic crises, and more. And Cyprus remains the same: an island where people spend their time relaxing, socializing, eating, and enjoying their time. Indeed, like the great philosopher Epicurus, Cypriots enjoy friendship, a good meal, and all the simpler pleasures of life over the rat race.

It’s no coincidence that Cyprus has the second-largest expat percentage in the EU. It’s a beautiful country with a low cost of life, yet amazing quality, and that offers plenty of tax optimization possibilities with more than 60 double taxation treaties. Let’s explain with a small table how a foreigner with both employment income, capital gains on real estate sales, and investment income can optimize his or her taxes living in Cyprus:


Source

Amount (€)

Tax (%)

Tax (€)

Exemptions

Employment

200,000

35

31,917.23

50 % for the first 5 years, taxable amount of 100,000

Dividends

50,000

0

0

Fully exempt

Interests

30,000

0

0

Fully exempt

Share disposals

5,000

0

0

Fully exempt

Capital gains from foreign real estate

150,000

0

0

Fully exempt

Total

435,000

31,917.23





If you want to go beyond the tax perspective, Cyprus has plenty of other reasons that make it an attractive destination for expats. It’s a beautiful country, with a high quality of life, where locals are open to foreigners, and has a low cost of living index. The country has been a vacation spot for Europeans for a long time for its crystalline beaches and its incredible cultural and archaeological spots. The country enjoys a privileged geographical destination that puts it a couple of hours away by plane from Eastern Europe, Western Europe, the Middle East, and North Africa.

This means that over a total income of €435k, only €32k must be paid to the tax authorities. That means that less than 8 % of the overall income is being taxed. The amount would double to €70k after the first five years or almost 16 % of the total revenue. Even if it doubles, it’s still significantly lower than almost all OECD countries. Add that to the fact that Cyprus has double taxation treaties with most of the EU, Russia, China, Canada, India, and most of Eastern Europe and some Middle East countries, and it’s even better.

The country has a great climate and a pleasant business environment. It has 320-340 days of sunshine per year and also business sunshine because of the substantial investment it has received in the last few years. This and the favorable tax environment have led to a considerable increase in the expat community. 

Cypriot locals are incredibly educated and multilingual. More than 70 % of Cypriots speak English, and German, French, as well as Russian are widely used in business because a significant number of Cypriots have conducted undergraduate and graduate studies abroad. 

The country has the second-highest percentage of foreigners in the EU with almost 20 %: 13 % from other EU states, and 7 % from non-EU states (these stats were before the Brexit, the 2020 numbers are likely to change soon). The largest group is the British, but there are also relevant communities of Greeks, Americans, Russians, and other Eastern European foreigners.

The country also enjoys a vibrant cultural and nightlife with plenty of music concerts, cultural performances, and sports events year-long such as the Cyprus Rally (part of the World Rally Championship), the Pharos Chamber Music Festival, and the Kypria International Festival. The mix of cultures present in the country, which has seen Greek, Roman, Frank, Venetian, Ottoman, and British presence across its history, also makes it a fascinating cultural site location. 

Aside from its world-renowned rally, the country also has four first-class professional golf courses, and the mountains in the center of the island are a must for hikers and cyclists, and skiers in winter. The beaches across the country are perfect for windsurfing, kitesurfing, and diving.

The country has an excellent urban public transport, but most routes end their services at 6 p.m. from Monday to Friday and even earlier on the weekends. During tourist seasons, the hours are extended until midnight, and some vital urban routes offer their services on Fridays and Saturdays. There are also rural buses that connect the main cities with many different towns and touristic locations, but their services are generally limited to a couple of routes per day.

In Cyprus, you receive the life quality of a European country at a fraction of the cost. When compared to other EU countries, the cost of living can be half and around 20 % lower than the US while you will retain an excellent healthcare system and public services. This is why Cyprus is considered among the best relocation destinations in the planet.

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Investment Real Estate

Years of practice in his field: 10