If you are one of the many people desperate to change things up – and be better off – then perhaps you might consider Cyprus.
Sun? Tick. Tax advantages? Tick. Anglo-friendly culture? Tick.
Last year, successful Sunderland business owner Dean, 63, and his partner Shirley decided to move to Cyprus. A year ago, the couple bought off-plan a three-bedroom villa in Pernera, a coastal resort near Protaras in the southeast of the island.
Dean, a cycling-mad 63-year-old, is semi-retired, says the UK is ‘imploding’ and prefers sun-drenched days rather than ‘eight months of winter’ in north-eastern England.
“When you stop working every day in an office, the (poor) weather becomes even more apparent,” says Dean, who has now handed over the running of his UK automotive business to his son.
Why did they choose Cyprus?
“We spent years touring Spain in a motorhome but found the language barrier an issue away from the coast. We also considered Malta for the tax benefits, but the property is too expensive and the island very small.”
The couple visited Cyprus and, after deciding Paphos wasn’t for them, visited the Paralimni area, where they met Sarah Hordle of Island Homes Cyprus, who was happy to assist them with all the things they wanted to ask about living on the island.
How much does property cost in Cyprus?
“We have found Cyprus to be the nicest Mediterranean island, with affordable property prices,” he says of their new villa with a private pool that cost around €500,000 from a developer. “Not to mention the very competitive tax implications."
“Protaras is beautiful – that corner of the island, especially Cape Greco, where I love cycling, is like Cornwall with the heat,” he says of the cliffs, pine trees and clear waters. They have also joined a swimming group.
“Paralimni has three good supermarkets. We can have a lovely lunch for two for €40 in a village like Sotira. We don’t need nightlife.”
What is Cyprus’s Business Company Scheme Visa?
Dean has used a BCS (Business Company Scheme) Visa to move over, setting up a Cypriot company – effectively an arm of his automotive distribution business.
Most British people move to Cyprus on the Pink Slip, or temporary residency permit that needs renewing every year, but the BCS Visa is much less well known, says Hordle.
Yet it’s an option for those semi-retired but setting up a company in Cyprus, or employees of a Cypriot company, giving the right to live, work and access healthcare for three years in Cyprus, and also enjoy non-dom tax status. You need to have a higher education or professional qualification.
What are the tax benefits of Cyprus non-dom status?
Non-dom tax status means that foreign-born tax residents are exempt from Cyprus’s Special Defence Contribution (SDC) tax on dividends, interest and rental income for up to 17 years. This means 0% tax on most passive income, no wealth or inheritance tax, and a 50% income tax reduction for high earners.
Can you access healthcare in Cyprus before state pension age?
Dean intends to work ‘a couple of hours’ on his laptop prior to full retirement, whilst Shirley, also 63, loves the beach. This visa allows access to GESY public healthcare even before he reaches UK state pension age at 66/67.
“Having access to good healthcare, without having to pay for really expensive private cover, was also key,” he says.
What is life like living in Cyprus?
Whilst clearly enjoying great health thanks to his active lifestyle, he remains realistic about the prospect of facing old age away from their family.
“It may mean that we come back at some point, so we have kept a property in the UK, and we have children and grandchildren back home. But the tax situation here is very competitive and the Cypriots have warmly welcomed us.”
Thinking about moving to Cyprus?
From tax advantages and residency options to affordable property and sunshine, Cyprus continues to attract British buyers and retirees.
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