Why More Europeans Are Moving to Cyprus
January 3, 2024 · Cyprus · 12 min read
In recent years, a growing number of people from the United Kingdom and EU countries have been moving to Cyprus to invest, set up businesses, and build a settled, long-term life on this beautiful island nation.
Although it is a small island nation in the eastern Mediterranean, Cyprus is attracting a growing number of investors and businesses, as well as Europeans and people from other countries who come to live, study, and work there long term. This emerging trend is the result of several factors coming together.
1. Mild climate, rich nature, and a distinctive culture
Cyprus enjoys around 300–340 days of sunshine a year, and the sea stays warm enough for swimming even in November, something few other European destinations can offer. Average temperatures range from 13 to 15°C in winter and from 30 to 36°C in summer. The island’s rich history is reflected in its ancient monuments and its beautiful Byzantine churches, monasteries, and museums. Cyprus has 3 UNESCO World Heritage Sites and 11 sites on the UNESCO Tentative List, along with remarkable flora and fauna and plenty of excellent spots for hiking and outdoor exploration.
2. Economic and political stability
The Cypriot economy has shown its ability to recover from the recent financial crisis. One clear example: in 2020, Cyprus’s GDP growth rate was -5% (due to the COVID-19 pandemic), but in 2021 it rebounded to +5.5%. GDP per capita in 2022 was €26,550, ranking the country 15th in the EU. Tourism is the leading sector of the Cypriot economy, accounting for more than 80%. Other sectors include industry, construction, agriculture, forestry, and fishing.
Cyprus is also one of the safest countries in Europe, with stable political institutions and a low crime rate. In the 2022 Global Peace Index, it was rated as having a high state of peace and ranked 67th in the world, and it ranked 23rd in the world on a quality of life index. UNICEF has also rated Cyprus among the countries with the best environments in the world for children to grow up in.
3. Affordable cost of living
Although prices vary by location, living in Cyprus is relatively affordable compared with much of Europe. According to Eurostat, price levels in Cyprus are 10% below the EU average. A meal at a café or small restaurant costs €8–20, and a monthly mobile plan is around €30. By comparison, the equivalent figures in Malta are €10–28 and €35, and prices are higher still in wealthier countries such as Germany and France.
Despite the lower prices, the quality of services in Cyprus is very good and on par with the rest of Europe, which is why many people from other European countries are happy with their decision to move there.
4. An attractive business environment with tax incentives
Economic and political turbulence around the world is pushing entrepreneurs to relocate their businesses to more stable jurisdictions. Cyprus has a long track record of attracting foreign investors and businesses and offering them a favorable environment.
According to statistics, around 1,000 new companies are registered in Cyprus each year. In 2023, however, that number surged unexpectedly: more than 6,000 new companies were registered on the island between January and June 2023 alone. This exceptional growth was driven partly by economic volatility in 2023, changes in tax rates, and political shifts around the world, which made relocating a business to Cyprus especially popular among companies looking for a stable and profitable base for their operations.
Cyprus offers attractive and sustainable business prospects thanks to its tax incentives, economic stability, and geographic location. It has become a compelling destination for international companies seeking to reduce their tax burden, particularly in information technology and intellectual property, and thousands of companies have found a secure base in this jurisdiction. Cyprus has one of the lowest corporate tax rates in Europe, at just 12.5%, which is highly attractive to entrepreneurs and global companies. Personal income tax rates range from 20% to 35%, but individuals with annual taxable income below €19,500 pay no personal income tax.
For comparison, Hungary’s corporate income tax rate is 9%, although from 2024 it rises to 15% for large companies; Lithuania’s standard rate is also 15% (the average corporate income tax rate across Europe is 21.7%). Cyprus has also signed double taxation agreements with 67 countries, which prevent the same income from being taxed twice and reduce the tax burden on companies with international operations.
Own premium property and qualify for permanent residence in Cyprus, an EU member state
These advantages explain why Cyprus attracts a growing number of investors from around the world. Even investors from developed EU countries are taking a close look at the opportunity.
Investors from outside the EU can also settle in Cyprus through its residency by investment program by purchasing property worth a minimum of €300,000 (approximately US$336,000). There are no education or management experience requirements. Processing takes approximately 12 months. The Cyprus permanent residence permit is issued for an indefinite period, and holders need only visit Cyprus at least once every 2 years to keep it. The program may also open a path to Cypriot citizenship, and with it European citizenship, for investors who reside in Cyprus for 5 years within a 7-year period and meet the other naturalization requirements. Key benefits of Cyprus permanent residence include:
- Live in Cyprus and invest in Cypriot businesses (this permit does not allow employment in Cyprus), with access to healthcare and social security in line with local rules.
- Investors’ children can attend public school free of charge through the end of upper secondary school and pay lower university tuition than international students. The Cypriot government spends 7% of GDP on education each year, the third-highest share in Europe, and the country is home to several well-regarded universities that appear in global rankings.
- A favorable tax regime: Cyprus is often cited among the more tax-efficient jurisdictions internationally.
- A path to Cypriot citizenship once the requirements are met (Cyprus permits dual citizenship). Cypriot citizens may live in any of the 27 EU member states and have visa-free or eVisa access to 180 destinations, including Canada, Australia, the United Kingdom, and South Korea.
If you are interested in the permanent residence program of the Republic of Cyprus, contact IMM Group or leave your details below. Our experienced advisors will provide detailed guidance and help assess your eligibility and your application’s likelihood of success. We are committed to keeping your personal data confidential and will use the information you provide only to advise on your family’s case.
IMM Group
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