By: Christophe Molitor

Updated: Jan 17, 2025

Relocating to Cyprus: Everything You Need to Know for a Smooth Move

Relocating to a new country is a life-changing decision, and Cyprus offers an irresistible combination of natural beauty, financial benefits, and a welcoming lifestyle. Whether you're an entrepreneur seeking a tax-friendly environment, a family looking for safety and excellent schools, or simply someone dreaming of sunny days and a slower pace, Cyprus has something for everyone.

This guide is your go-to resource for smoothly transitioning to this Mediterranean paradise. Packed with practical advice and my personal insights as a trusted real estate professional for Cyprus Sotheby's International Realty, it's useful for anyone considering a move to Cyprus—whether you're in the early stages of planning or ready to take the leap.

Table of Content

1. Is Cyprus the Right Choice for Me?
2. Understanding Cyprus Living Costs
3. What You Need to Know About Cyprus Laws
4. Renting or Buying? Choosing Your New Home
5. Facing the Challenges of Life in Cyprus
6. Conclusion

Is Cyprus the Right Choice for Me?

YES, one-hundred percent! Cyprus is an enticing destination for many, and you may already feel drawn to its charm for one or several reasons. You're right to explore the possibilities of making this beautiful island your new home!

Cyprus offers:

• A warm climate with over 320 sunny days per year.
• Genuine hospitality and a rich cultural heritage.
• A fair tax system that supports financial freedom and entrepreneurial success.
• Wide use of the English language, making integration easier for expatriates.

Cyprus is an excellent choice whether you're single, part of a couple, or moving with your family. I'll walk you through essential aspects of living here, helping you minimize surprises and maximize opportunities. 

Please find below a summarized table:

What is a Dream Life?

Most people's answers revolve around happiness, safety, and freedom. Interestingly, even billionaires align with these principles when choosing a relocation destination. According to the 2024 UBS Billionaire Report, three key pillars drive their decisions:

1. Safety & Security
2. Political Stability
3. Fairness of the Tax Regime

While most of us aren't billionaires, the relocation dream is achievable—especially within the EU. Why wait any longer to create the life you deserve?

Picture this: waking up on a warm April morning, the sun shining brightly, and the pool ready for the season. Why limit this to a holiday vibe? Why not make it your daily life vibe?

While income streams are essential, networking in Cyprus is simple and fast, thanks to a vibrant expat community where optimism and ambition meet. It's the perfect place for your next life chapter.

Let's dive in!

Understanding Cyprus Living Costs

While Cyprus offers an attractive lifestyle, understanding living costs is key. The cost of living is moderate, especially compared to many European cities. Below is a breakdown of typical expenses:

Let's compare the living costs at International Standards in Paphos with those of Nice and Munich.

Cyprus vs. Other Cities: A Cost Comparison

• In Nice, France, the living costs, including rent, are 20% higher than in Paphos.
• In Munich, Germany, the living costs, including rent, are 40% higher than in Paphos.

Conclusion: Cyprus provides a balanced cost of living with added perks like sunny days and a relaxed lifestyle.

What You Need to Know About Cyprus Laws

Cyprus operates under British Common Law, which simplifies processes for many expatriates. Here are some legal points that might be interesting for your relocation:

Property Transactions

Unlike many other countries, Cyprus does not require the involvement of notaries in property transactions. Instead, a lawyer drafts contracts, secures necessary permits, and ensures legal protections for your investment. 

An advantage is that you won't have to pay the services for a notary service while also noting that the usual average lawyer fee is 1% of the total sales price from a property transaction.

This means that you need an excellent lawyer, which is not easy to find. However, we can provide recommendations if necessary.

Building Quality Checks

Conduct thorough due diligence before committing to a property purchase. A civil engineer or land surveyor can help assess the building's quality and confirm compliance with structural and zoning regulations.

Good to know that it is not mandatory by law to apply these extra steps. However, it mainly costs you between 500 € and 1,000 €, and you have a more profound security that the property you plan to buy has no significant damage, and all building permits have been respected. In a Nutshell, you reduce the risk of an unnecessary headache.

Tax System

Cyprus is renowned for its favorable tax regime, offering benefits for individuals and businesses. However, understanding the nuances of the 60-day rule and the impact of double-tax treaties is crucial to avoid potential tax liabilities and maximize benefits.

In other words, if you stay 61 days in Cyprus, you are tax-eligible; however, if you stay more than 183 days in any other country in the same year, you must pay taxes in both countries. Nobody likes that idea. I always say that to be entirely safe, spend 184 days or more in Cyprus, and no other country can claim taxes (apart from the US – if Green Card Holder).

Residency Requirements

Immigration procedures are relatively straightforward for EU citizens. Non-EU citizens face more complex residency processes and should seek expert guidance to navigate requirements effectively and ensure compliance.

Renting or Buying? Choosing Your New Home

Planning carefully to avoid surprises is vital when considering your housing options in Cyprus. Take the district of Paphos, for example, which is comparable in price to Larnaca district. Limassol is approximately 30-50% more expensive. Below is a summary of housing costs and considerations:

Please also note that price differences can occur depending on the status of the new build, resale, renovation, etc. As an expert in the real estate field, I recommend you consult a trusted real estate agent before making any decisions and get an objective market overview. Of course, you can also contact me for directions to the property that best suits your needs.

My Key Tips for Renting or Buying

Understanding the local market dynamics is essential when considering renting or purchasing a property in Cyprus. Below are some crucial factors to keep in mind:

New Builds vs. Resale

Property prices in Cyprus can vary significantly depending on the age and condition of the property. New builds often come with higher price tags but require less immediate maintenance. At the same time, resale properties may offer better value but could need renovations. 

It is likely the only question on which I cannot give a generic reply and where only one answer is correct. Why?

Each case is totally different, and it heavily depends on your appetite for moving in right away or waiting until the construction is completed. Is it more crucial to buy something fresh and never used, or do you prefer a more traditional style with a mature garden and a solid character?

Loans

Securing a loan can be challenging for newcomers. Cypriot banks usually require applicants to reside for at least 12 months before considering their loan applications, so planning your finances is crucial. This rule applies to any Major expat, regardless of country of origin. The primary purpose is to guarantee stability and ensure a more profound interest of each client to stay in Cyprus and spend the borrowed money within the local economy.

Solutions include renting for one or two years or simply securing enough funds before buying a new property in Cyprus. Viktoria Soltzes's article covers banking challenges in Cyprus from a banking consultant's viewpoint.

Get Expert Advice

Navigating the property market with local expertise can be manageable. Consulting a trusted real estate expert provides objective insights into market trends, ensuring you make informed decisions that align with your needs and goals.

Facing the Challenges of Life in Cyprus

It is vital to be straightforward and conduct business with high ethics. Hence, I highlight some hurdles or drawbacks of life here in Cyprus.

No paradise is without its challenges. Here are some hurdles you might face when relocating to Cyprus:

Bureaucratic Delays

After all, it is a Mediterranean island, so the daily coffee break and the more casual lifestyle are significant. You will encounter some delays regarding bureaucracy and a series of appointments to register yourself in the system or buy Real Estate. Ultimately, each person or office does their job; it just takes more time. Patience and preparation are key.

Limited Public Transportation

A public transportation system exists but is limited to buses, which are reliable in the major cities. Improvements over the years have been made, and more thoughts and actions will follow. Trains or Subways, on the other hand, do not exist in Cyprus. Therefore, for most people, a car is an investment in survival.

School Enrolment

International schools have limited seats. If you have children, contact schools early to secure a spot. From an economic market point of view, the main problem is that the demand is vastly more significant than the current supply.

Contact each appealing school, arrange appointments during your initial stay in Cyprus to clarify the location and conditions, and eventually apply for the program.

You will notice that the school's location for your kids heavily impacts your choice of location for the property. As you can observe by now, a property purchase is a journey with many different ingredients that must be taken care of at the right time to make sense and conclude.

Exiting Your Current Country

Check for exit taxes and other legalities in your country of origin to avoid unexpected costs or delays. In countries like Germany or Austria, where an Exit Tax applies, it may require enhanced tax clearance, selling properties and companies before your exit, and paying a much higher amount than expected. This correlates with your future plans and budget for any property purchase in Cyprus.

In a personal consultation, an in-depth explanation can be shared, backed up with multiple examples of clients underestimating the bureaucratic journey.

Conclusion

Cyprus is a land of opportunity, blending natural beauty with financial and lifestyle benefits. This island offers it all, whether you're seeking safety, stability, or a fair tax system. Picture waking up to sunshine, surrounded by a vibrant expat community, and enjoying a relaxed yet fulfilling life.

Relocating to Cyprus is not just a dream—it's a tangible goal you can achieve. Proper guidance can help you turn this Mediterranean paradise into your daily reality.

Ready to take the leap? Contact me today to receive personalized advice and kickstart your relocation journey! ⬇️