Living in Cyprus: pros and cons of spending your life in the heart of the Mediterranean

Cyprus is one of the most popular tourist and immigrant destinations in Europe for a reason. Obtaining residency and living on this Mediterranean island provides several benefits, attracting foreigners for years.

How to get Cyprus permanent residence by investment

1. Mild climate, beautiful landscapes, and rich culture. In Cyprus, there are about 300—340 sunny days per year, and this is the only European country where the sea is warm and suitable for swimming, even in November. The average air temperature in winter is +13…15°C, and in summer it is +30…36°C.

The island has a rich history reflected in its ancient sites, fine Byzantine churches, monasteries, and museums. There are three UNESCO World Heritage sites, and 11 more objects are on the UNESCO Tentative list.

Cyprus also features incredible flora and fauna and is a great place for hiking.

2. Affordable cost of living. While prices can vary depending on the location, life in Cyprus is relatively cheaper than in other European countries. According to Eurostat data, the price level is 10% lower than the EU average.

A meal in a café or a small restaurant would cost €8 to 20, and a mobile monthly plan is around €30. To compare, in Malta, these are €10—28 and €35, respectively.

3. Affordable real estate prices. Property in Cyprus is one of the most affordable in the EU. The rental fee for a one-bedroom apartment starts from €400, depending on the city. To compare, in Malta, the monthly minimum price is €550.

The average rental prices for a one-bedroom apartment are as follows:

• Limassol — €1,155;

• Nicosia — €512;

• Larnaca — €604;

• Paphos — €565.

Cypriot property is also very attractive to foreign buyers. The average sale price per square metre is €1,680. Average prices in the most popular cities of Cyprus are:

• Limassol — €2,319;

• Nicosia — €1,750;

• Larnaca — €1,358;

• Paphos — €1,948.

Examples of real estate in Cyprus

Cyprus, Larnaca

from €365,000

Apartments near the sea in a prestigious area of Larnaca

105 m²

2

2

Cyprus, Limassol

€695,000

Apartments in a residential complex near the sea

78 m²

2

1

Cyprus, Nicosia

from €258,000

Modern apartments in a residence with a swimming pool

124 m²

2—3

2—3

Cyprus, Paphos

€795,000 — €1,060,000

Apartments and villas in a closed residential project near the sea

97 m² — 210 m²

1—3

1—2

4. Tax optimisation. Cyprus is a country that provides various tax benefits to its residents. For example, the standard corporate income tax is 12,5%, the lowest in Europe.

Tax on personal income ranges between 20 and 35%. But if the annual taxable income is less than €19,500, a person is exempt from this tax.

Property owners who buy primary real estate where they will live themselves can benefit from VAT deduction: they can decrease their VAT from 19 to 5%. There is also no annual property tax; the owners pay only a yearly fee as a municipal tax. This fee depends on the property price and can range approximately from €60 to 150 per year.

5. Quick obtaining of a residence permit. Foreigners moving to Cyprus must obtain residence permits. The country provides a variety of residence permits for different goals:

• visitors permit;

• work permit;

• education and research permit;

• family reunification permit;

• international protection permit;

• permanent residence for long-term residents;

• permanent residency for investors.

Getting a residence permit takes about 4—6 weeks. First, the applicant receives an Alien’s Registration Certificate confirming their right to reside in Cyprus, which takes about two weeks. 3—8 weeks later, they get a resident’s ID card.

Investors who want permanent residence should buy property, stocks, or bonds in Cyprus. The process of obtaining permanent residence by investment takes 3—6 months.

6. High-quality healthcare. The WHO ranked the Cypriot healthcare system 24th globally, making it better than in Germany, Canada, and the United States.

Locals and foreigners trust Cyprus’s healthcare: the number of tourists entering the country for health reasons is steadily increasing. The primary healthcare fields popular with foreigners are plastic surgery, infertility treatment, IVF, dentistry, cardiology, orthopaedics and spine treatment, recovery and rehabilitation.

7. Stable economy. Cyprus’s economy proved its ability to bounce back after the financial crises. A recent example is how quickly it recovered from the pandemic crisis: in 2020, the GDP growth rate was ‑5%, but in 2021, it rebounded to +5.5%. The GDP per capita in 2022 was €26,550, making the country the 15th in the EU.

The leading sector of the Cyprus economy is tourism, which accounts for more than 80%. Other sectors include industry, construction, agriculture, forestry, and fishing.

Due to its low taxes for businesses, Cyprus has become a place where many international companies are registered.

8. Safety. Cyprus is considered to be a safe country for life and travel. The Global Peace Index ranks Cyprus 64th out of 168 globally and 23rd in the EU. It is a safer place than France and the US, which are 67th and 131st, respectively.

77 Cypriot beaches were awarded with the Blue Flag in 2023, ranking the island first alongside Malta and Luxembourg by the purity of bathing water. One of the most popular Blue Flag beaches is Makronissos in Ayia Napa

9. Favourable language environment. English is the official language in Cyprus. This means that you will not have to learn a new language when moving to the island and will unlikely have difficulties communicating with locals.

10. Extensive expat communities. Cyprus is a multinational country. The biggest ethnic group is Greek Cypriots, followed by Turkish Cypriots and others.

Cyprus is one of the top 3 EU countries for migration: 22,7% of citizens are foreign-born. The immigration rate remains quite high: in 2021, 27 non-EU citizens per 1000 people arrived in the country.

The island is very popular among foreigners, so you will find expats from your country who moved there earlier. They will share details about living in Cyprus, and finding friends in a new country will be easier.

Despite many benefits, some disadvantages of living in Cyprus should be considered when moving to the island.

1. Political instability. In the past, there were political issues between the southern and northern parts of the island. Currently, the northern part is occupied by an unrecognised state — the Turkish Republic of Northern Cyprus. Although there has been relative stability in recent years, the situation could change.

2. Low level of urban development. Cyprus is mainly a rural country with a few cities. The centre of cultural life is Limassol, which usually hosts most events. Thus, expats living in other areas may lack entertainment in places they live in.

3. Natural hazards. Cyprus is prone to wildfires, flash floods, and earthquakes. The Geological Survey of Cyprus registers about 500 tremors annually, but no severe earthquakes have occurred in recent years.

4. A very relaxed lifestyle. This is often one of the main reasons why foreigners choose Cyprus for living. However, this lifestyle also has a drawback: things are done quite slowly, and solving issues on the same day is almost impossible.

5. High electricity prices. Electricity is quite expensive in Cyprus, and the rates are continuously rising: in 2022, the average rate increased by 75,81%.

The electricity consumption is also high: apart from usual household appliances, it includes air conditioning for cooling in summer and for heating in winter, and warming water in boilers. Average two-monthly bills for a family of two start from €150.

6. Limited job opportunities. The labour market in Cyprus is quite small. Although the unemployment rate decreased to 4,8% in Q2 2023, in previous years, the average index was about 7% in general and 17,6% among young people. This means expats looking for career opportunities in Cyprus face certain difficulties.

In Cyprus, there are a lot of beautiful cities and towns that attract expats from all over the world. No matter what lifestyle you like — an active or a relaxed one — in Cyprus, you will be able to find the best place for you.

Expats typically choose four main destinations for their relocation: Limassol, Nicosia, Larnaca, and Paphos.

Limassol is the most popular place among immigrants. It is located on the island’s southern coast and features a very modern and cosmopolitan atmosphere. Limassol offers wide job and business opportunities and has a large expat community.

The city has many sights and provides limitless options for those who prefer an active lifestyle: you can go horse riding, skiing, and cycling and explore the city’s surroundings thanks to various nature trails.

Yachters will appreciate Limassol Marina, one of the biggest and better-equipped marinas in the Mediterranean. It has 650 berths and offers services like boat repairs and refuelling

Nicosia is the capital city of Cyprus. It lies inland and, therefore, has no direct access to the sea. As a result, it is not as crowded with tourists as seaside cities but has a wide expat community.

The capital is Cyprus’s business, financial, educational, and cultural centre. The country’s five leading universities are located there: the University of Cyprus, the University of Nicosia, the European University of Cyprus, the Open University of Cyprus and Frederick University.

Nicosia hosts more than 45 foreign embassies, 58 consulates, and offices of many international companies such as Deloitte, Microsoft, Oracle, and Ernst & Young.

Larnaca is another destination popular with tourists and expats. One of two Cyprus international airports is located there. As a place of tourist attraction, Larnaca is very crowded in the summer but is quite tranquil in the winter.

Larnaca offers a more relaxed lifestyle than Limassol and Nicosia and is relatively cheaper as well.

Paphos is a coastal city in the southwest of Cyprus. The second international airport of the country is located in Paphos. The city offers good infrastructure, picturesque views, resort facilities, and easy access to the rest of the island.

According to mythology, Paphos is the birthplace of the Greek goddess of love and beauty, Aphrodite. Along with the Sanctuary of Aphrodite, Paphos has many other ancient ruins, making it the historical centre of Cyprus. The ancient city of Paphos was designated a UNESCO World Heritage Site

1. Cyprus is ranked the 3rd most popular expat destination in the EU. Foreigners are attracted there by the mild climate, beautiful nature, warm sea, and affordable cost of living.

2. People moving to Cyprus can enjoy high-quality medicine and optimise their taxes. Personal annual income under €19,500 is not levied, and the income tax for businesses is 12,5%, the lowest in the EU. On the other hand, Cyprus has limited job opportunities, one of the highest electricity rates in the EU, and a risk of tension between Northern and Southern Cyprus reappearing.

3. The most popular cities among foreigners are Limassol, Nicosia, Larnaca, and Paphos. Limassol attracts most expats and has a modern and cosmopolitan atmosphere. Nicosia is the capital city; foreign embassies, offices of international companies, and the country’s leading universities are located there. Larnaca and Paphos are resort cities with a very laid-back atmosphere.

4. Cyprus provides different residence permits for expats, depending on their goals. Foreign investors can obtain permanent residence in Cyprus. To qualify, they invest at least €300,000 in real estate, shares of Cypriot companies, or units of investment funds registered and operating in Cyprus. Permanent residence by investment is obtained in 3—6 months.