How to move to Cyprus and get tax residence

RELOCATING TO CYPRUS AS A RETIREE, ENTREPRENEUR OR DIGITAL NOMAD

1. If you’re a private-sector retiree

Mediterranean climate: 300 days of sunshine a year, hot summers and mild winters;
Spectacular beaches and warm sea water:
The Troodos Mountains, where you can ski in winter;
Private-sector pensions taxed at 5% (maximum);
Cost of living which is about 20% lower;
Proximity to other European countries, for example just a 3.5-hour flight away from Italy;
Safety and zero crime;
An efficient public healthcare system.

If you want to learn more and plan your relocation to Cyprus as a retiree, contact us now!

Requirements for tax residency as a retiree:

Actual presence in Cyprus for at least 6 months and one day each year, even if not continuous;
A local bank account;
A long-term housing rental contract or purchase of a local property;
Cyprus as the center of your economic and personal interests.

2. If you are an entrepreneur and digital nomad

Cyprus is a member of the EU and the Commonwealth. Under current tax legislation, Cyprus has one of the most advantageous tax systems in Europe, and its role as an international financial center is well established. Cyprus is a prestigious European country with significant tax incentives, which remains free from the suspicions usually associated with “tax havens”.

The island is well-connected by air and sea. There are two international airports (Larnaca and Paphos) while the main port facilities are in Limassol and Larnaca.

Some of the competitive advantages that characterize Cyprus are its:

Efficient tax system;
Low taxation on profits, among the lowest in the EU (12.5%);
Tax-exempt dividend income;
Tax incentives for businesses;
Strategic location;
Widespread use of the English language;
Quality of life;
Solid legal and regulatory framework;
Multicultural;
Excellent climate.

Where to move in Cyprus

Unlike other islands, Cyprus is distinguished by its size (its coast extends for 650 kilometers) and by its topography: the Troodos Mountains cover a good part of the island’s hinterland, while plains and white-sand beaches create a beautiful frame around the center.

The island of Cyprus is politically divided into two parts: the north is Turkish while the south is Greek. The two areas are “divided” by a border called the “green line”, which is clearly visible on maps. The good news is that there are no tensions between north and south.

The Famagusta District

The Famagusta District is in the southeast of Cyprus. Located close to the sea, it’s a good place to look for homes for rent or sale at affordable prices. It also offers easy access to the Northern Cyprus through two check-points, merely by presenting your ID. The city of Famagusta is located in the Northern Cyprus area. Living near the North Cyprus border is very attractive as the cost of living and gasoline are even cheaper than in South Cyprus.

There are many interesting towns near the Northern Cyprus border to consider in your housing search, such as Paralimni, Ayia Napa, Deryneia, Frenaros, Vrysoules and Sotira.

Protaras: amenities and services

Located in the southeast of the island, this well-equipped, clean and vibrant town is perfect for families. It has it all, from infrastructure to restaurants, bars and cozy little places even for children. The golden sand beach called Fig Tree Bay is famous for being listed by Trip Advisor as one of the best in Europe. It also has a Blue Flag in recognition of its exceptionally clean water, also earning it the nickname of Green Beach. The waterfront offers a wide assortment of water sports, cafes, and places to enjoy a delicious Cyprus frappe.

Ayia Napa: entertainment and tourism

This lively town in southeastern Cyprus is full of bars, restaurants, clubs, entertainment venues and all kinds of fun to be had, especially in the summertime.

Known more for its nightlife than anything else, this is the most touristy area on the entire island. It has a beautiful white-sand beach called Nissi Beach, which, within a few years, has been transformed from a small fishing village to a national tourism hub.

Nicosia the capital of Cyprus

Nicosia is a university town, the governmental and financial center of the island and, of course, the most populous city on the island. If you are thinking of relocating to Cyprus, however, we don’t recommend moving to Nicosia: it’s an interesting city, but it gets very hot in the summertime. Better to look for a nice house near the coast in a breezy, well-connected area.

Finding a house for rent or sale in Cyprus

To search for and find your ideal accommodation in Cyprus, you need to go there in person: our professionals will organize your housing search for you (to rent or buy), only selecting homes that align with your preferences. Once you find a place to live, you can proceed with the actual residency transfer.

The trip to Cyprus to find housing

Let’s start planning your trip to Cyprus to find housing: a week or more of full immersion where you’ll search for a home to rent or buy and get to know the area.

REFRAMED trips are tailored to every client, both in timing and execution. Our on-site professionals will assist you step by step as you make your relocation a reality: from house hunting to the essential information you need to get around independently and safely, in each of our locations.

Transferring residency

Our Relocation package includes logistical and bureaucratic support to transfer your residency, both with the local authorities and fiscally: as a registered tax resident, we will be able to apply for and obtain important tax incentives for your pension.