Expat Living in Cyprus

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.