If I had to choose 3 destinations in Europe for low taxes, all 3 would be living in Cyprus, and today I’ll tell you why.
How’s it going, Nomad? We are creating a series of blogs about Cyprus, an increasingly attractive destination in Europe for entrepreneurs from around the world. As you know, Portugal closed the NHR in 2023, and few options remain as appealing as this Mediterranean island in Europe.
Today’s blog is dedicated to all those who want to move to Cyprus under Non-Dom status and pay low taxes in Europe. Cyprus is known for offering one of the lowest tax rates in the entire European Union if you are a Non-Domiciled resident. Additionally, it guarantees these tax rates for 17 years.
Another factor that makes Cyprus so attractive is that it is one of the few low-tax countries that offer tax residency in just 60 days, ensuring you get the famous tax certificate necessary to quickly sever ties with the Spanish tax authorities, and then you’re ready to travel the world.
We’ve talked a lot about taxes in previous blogs (check out this blog), and we have a lot of content on our website with all the details about Cyprus. So let’s delve into today’s topic:
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What do I need to know before living in Cyprus?
Surely if you are thinking about living in Cyprus, you have asked yourself the following questions:
- Why is this island so attractive to entrepreneurs and businesspeople looking for a Mediterranean destination with low taxes?
- How much money do I need to live in Cyprus?
- Where should I look for housing on the island, whether it is cheap or expensive?
- In which area do more Spaniards live, or where can I interact more with the international population?
Which city to choose to live in Cyprus?
Cyprus, the beautiful, the marvelous, this island stole my heart three years ago when I arrived here looking to pay fewer taxes by just spending two months on the island. But to my surprise, I ended up getting hooked on this island for its people, its beaches, its calm, and obviously for its taxation.
I have spent almost the entire year on this island for the past three years, and Cyprus is a bit like early 21st-century Spain. Everything here works slowly, calmly, and without rush.
Cyprus is a paradise for families, couples, but also for singles looking for a life change in all aspects. The first thing you have to do upon arriving in Cyprus is to find a place where you feel comfortable living. After living in different cities on the island for these three years, I will tell you the differences between them and which ones I have felt most comfortable in based on my personal experience.
Living in Limassol
When I arrived in Cyprus, I stayed in Limassol. Limassol is a large city within Cyprus, a business hub where many multinationals have their hubs. From here, I drew several conclusions about who fits in living in Limassol:
- If you are a city person who wants to have all the amenities at your fingertips and be immersed in an international environment, Limassol is for you.
- It is also ideal if you are looking for international schools, sports clubs of golf or tennis of medium or high level.
- If you like meeting people from other regions of the world and want to distance yourself a bit from Spanish culture, Limassol is also a good option.
- Additionally, if you are a single person, Limassol may fit your profile since the nightlife and leisure options here are greater than in other places in Cyprus.
For whom Limassol is not suitable
Limassol is not for you if you are a person who is always looking at prices of everything since apartments and facilities here are more expensive than in other places. If you like calm, Limassol may not be for you either, although it is not as chaotic as Barcelona or Rome, the city can get a bit busy at some times of the day.
Do you want to know if Cyprus is the best option for you? Do not hesitate to hire your international tax consultancy here.
Living in Paralimni or Paphos
If you are looking for calm, perhaps better options are the areas of Paralimni or Paphos. I liked Paralimni from the first moment. I chose it for its proximity to Larnaca, Nicosia, and the occupied region of Famagusta. It is a quiet city but with multiple options nearby. Additionally, its beaches are incredibly beautiful.
Paphos, on the other hand, is far from everything. The nearest city is Limassol, about an hour away. But like Paralimni, the Paphos region is beautiful in nature and has many corners that will allow you to escape from everything.
The expats community in both regions is quite large, although in Paphos the international expatriate community is larger than in Paralimni, which will allow you to socialize with people from other cultures and enrich your way of life.
Cons of living in Paralimni or Paphos
The cons of these places would be the calm in the low season since many expatriates travel to warmer areas such as Southeast Asia or Central America. But if you can get along well with the local population, you will enjoy a unique environment. Cypriots are usually welcoming, and if they are your friends, they will also be your family.
Living in Larnaca or Nicosia
Larnaca and Nicosia are also two wonderful cities. Nicosia has no beach, but Larnaca does. In Nicosia, in areas like Aglantzia, you will live peacefully in winter with many leisure options at your fingertips. Additionally, life is cheaper than in other regions of the island. You can also have beautiful beaches just 35 minutes from your home.
I love Larnaca for its international atmosphere. Personally, in the 10 years that I have been living abroad, I greatly enjoy mingling with people from other cultures, and in Larnaca, I can easily find this.
Usually, expatriates who come to Cyprus do so for the same reasons as you: business, investments, and attractive taxation. This can make your network of quality contacts grow considerably. Nicosia is more local and does not have a beach, so I would highlight this as a disadvantage of this city.
Are you hesitating about which country to establish your residence in? Do not hesitate to contact us.
What transportation options exist for those who want to live in Cyprus?
If you are a person who lives traveling around the world, Cyprus is a great option for you. But if you want to stay calm living in a place that is your base of operations throughout the year, Cyprus is also an excellent choice.
Cyprus has three airports: Paphos, Larnaca, and Nicosia in the occupied area. In Paphos and Larnaca, you will have connections to multiple European and Middle Eastern destinations. Therefore, if you plan to stay all year in Cyprus, you will have many weekend getaway options.
At Nicosia airport, you will only have options to fly to Turkey. If you want to do medical tourism or simply travel to this beautiful country, you can do so from this airport. However, keep in mind that the Republic of Cyprus does not recognize entries and exits to the country through this airport as official, and you could have problems in the future, which is something you do not want.
Will I need a car to live in Cyprus?
Another topic that people who want to live in Cyprus ask me a lot is about mobility on the island. To move from one place to another, you will definitely need a car. Cyprus requires a car for everything, and getting a vehicle here will be a bit more expensive than in Spain due to import prices. However, being able to move around the island and discover all its corners is priceless.
Additionally, in summer, the ferry line to Greece opens, and if you want to do a road trip in this country, it can be a magnificent opportunity to open yourself to new experiences or adventures.
Is it safe to live in Cyprus with my family?
Cyprus is an incredible place to take care of your family. If you think countries like Andorra can be ideal for their security but are too small for you, do not worry because Cyprus is also very safe. When I arrived on the island, I was surprised that the houses do not have metal bars. Likewise, the fences are not too high, and anyone could jump over and steal. But as I mentioned before, Cyprus is nothing like Paris or Barcelona at all.
In Cyprus, besides security, your children will be able to enjoy a good level of English. Keep in mind that 80% of the population here speaks this language. Additionally, Cyprus has multilingual schools in Nicosia, Larnaca, Limassol, and Paphos. Although the schools with the highest educational quality will be found in Nicosia or Limassol.
What is the approximate budget necessary to live in Cyprus?
As each person is unique and each situation is entirely different from the other, I will make a general calculation of products that you may need in Cyprus.
Price comparison in Cyprus
- New construction housing (max 3 years), 70 m², furnished
- Nicosia: Monthly average price €800-€1200
- Characteristics: Located in central or nearby residential areas with access to services and public transport.
- Limassol: Monthly average price €1500-€2000
- Characteristics: Proximity to the beach and business center, high demand due to business and tourist activity.
- Larnaca: Monthly average price €1000-€1500
- Characteristics: Close to the airport and tourist areas with various options in different locations.
- Paphos: Monthly average price €1000-€1500
- Characteristics: Quiet residential and tourist areas, attractive to retirees and expatriates.
- Nicosia: Monthly average price €800-€1200
- Grocery basket (basic products)
- Milk (1 liter): €1.30
- Bread (500 g): €1.50
- Rice (1 kg): €2.20
- Eggs (12 units): €3.00
- Local cheese (1 kg): €8.50
- Chicken (1 kg): €6.00
- Apples (1 kg): €2.50
- Tomatoes (1 kg): €2.00
- Potatoes (1 kg): €1.20
- Water (1.5 liters): €0.70
- New mid-range car (Toyota Active brand)
- Price: from €31,000
- Second-hand car (Toyota Corolla Active model, 3-5 years old)
- Price: €19,000-€24,000
- International schools
- The English School Nicosia: Annual tuition €7,000-€12,000
- The Heritage Private School Limassol: Annual tuition €6,000-€11,000
- American International School Larnaca: Annual tuition €5,000-€10,000
- Paphos International School: Annual tuition €5,500-€10,500
Summary
Friends, Cyprus is full of surprises. If you are thinking of moving your tax residence here, you can always contact us, and we will tell you all the experiences you can discover in this place just for you. I hope you enjoyed this blog. See you next time.
