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Retiring to Cyprus
Essential advice for anyone thinking of retiring to Cyprus
Many people have chosen this island as an ideal place to retire to, attracted by Cyprus's mild climate, beautiful landscape, variety of excellent and inexpensive food and drink, (wines and brandies) and traditional friendliness and hospitality of its people.
Notes for UK nationals intending to visit or take up residence and/or employment in the Republic of Cyprus.
The following notes are provided for your guidance. The High Commission have tried to ensure accuracy but cannot be held responsible for any errors. The appropriate Cyprus authorities should be approached for authoritative detailed information. Those contemplating long term residence, particularly those planning to retire to Cyprus and/or purchase property are particularly urged to seek advice from as many sources as possible, including a lawyer, before entering into any commitment.
Tourists and business visitors
United Kingdom Nationals are normally permitted to stay in Cyprus as visitors for an initial period of up to three months provided they possess a valid British passport and sufficient funds for their maintenance during their stay. Visitors who wish to stay for more than three months must apply for an extension of their stay to the:- Migration Department, Ministry of Interior, Republic of Cyprus, Nicosia, through the local Immigration Officer.
Permanent residence
Residence permits are required by all Foreign Nationals taking up residence in Cyprus. These are usually obtained without difficulty by United Kingdom Citizens of good repute, provided the applicant can demonstrate that he or she is of sufficient independent means and thus able to support himself without working. Application for a permit may be made either before or after arrival in Cyprus, on Form M67 (Application for Immigrant Permit). The application should be accompanied by evidence of financial standing and two photographs and may be made to the:- Chief Immigration Officer, Migration Department, Ministry of Interior, Republic of Cyprus, Nicosia.
Employment in Cyprus
All non-Cypriots require work permits before taking employment in Cyprus. These are not normally granted by the Government of Cyprus unless the vacant position cannot be filled by a Cypriot. It is the responsibility of the prospective employer to obtain a work permits for the applicant before engaging his services, and travel to Cyprus is inadvisable before a work permit has been issued.
The High Commission cannot assist in finding employment. A suitable advertisement in the local English language newspapers, either The Cyprus Mail, P.O.Box 1144, Nicosia or The Cyprus Weekly, Archbishop Makarios III Avenue, Mitsis Building 3, Office 216, Nicosia, is sometimes helpful.
Enquiries about the establishment of a business concern in the Republic of Cyprus should be addressed (through a practicing lawyer) to the:- Central Bank of Cyprus, 36 Metochiou Avenue, Nicosia. Tel: (02) 445281.
Employment in the Sovereign base areas
Cypriot work permits are not required for employment with British Forces establishments in the Sovereign Base Areas (SBAS), but resident status must first be established with the Cyprus Government before the Sovereign Base Areas authorities will offer employment. Applications for employment with the Army establishment are handled by the Civilian Establishment and Pay office, Episkopi, B.F.P.O. 53. There is, however, virtually no opportunity.
Purchase of immovable property.
The purchase by foreigners of immovable property in Cyprus is subject to the permission of the Council of Ministers. A maximum of one donum of land (about 1/3 acre) is the normal limit. Further information on the subject may be obtained from:- Headquarters, Lands and Surveys Department, Ministry of Interior, Republic of Cyprus, Nicosia. or District Lands Office of the district in which the property is situated or from a professional Real Estate Agent. A list of agents may be obtained from the Cyprus Real Estate Association, P.O.Box 1455, Nicosia. Before entering into any commitment to purchase property it is important to seek independent legal advice, there are many pitfalls to trap the unwary. The High Commission can provide a list of some lawyers practicing in Cyprus.
Rented accommodation
Rented accommodation in the big towns is plentiful and is comparatively inexpensive in British terms. For example, the rent of a furnished house of three bedrooms etc. in the better quarters may be as much C£350 to C£500. Unfurnished flats of similar size and situation may cost C£150 to C£180 per month.
Youth hostels
There are youth hostels in Nicosia, Limassol and Paphos where a bed and breakfast can be obtained by members for C£3.O0 (approx. £4.00) for the initial night and C£2.50c (approx. £3.00) for subsequent nights. The annual membership subscription is C£6.00 (approx. £8.00) in Revenue Stamps.
Churches
There are Anglican, Roman Catholic and Greek Orthodox churches in the main towns but no synagogues.
Health services
Medical treatment is available at Government hospitals or private clinics. Government hospital fees, excluding doctors attendance fees, operation costs, laboratory fees, drugs etc., are as follows:
Public wards: C£10.00 per day plus C£6.00 per day for a doctor if not operated on plus the full cost of all services and medicines.
Private wing: (2 patients sharing a room) C£14.00 per day plus C£6.00 per day for a doctor if operation is not required, plus the full cost of all services and medicines.
1st Class: C£18.00 per day - plus C£6.00 per day for a doctor plus the full cost of X-rays, all services, medicines and operating fees.
Operations performed at these hospitals cost from C£12.00 to C£210.00 depending on the nature of the operation. The cost of medical services in private clinics is up to double that of Government hospitals.
In an emergency or in special circumstances British nationals may request treatment at The Princess Mary's RAF Hospital at Akrotiri, but they do not have an automatic entitlement. Costs are very high, up to £85 per consultation and £200 per day for in-patient treatment, although in certain circumstances a lower rate may be charged.
The elderly and disabled in particular should bear in mind that as a small island, Cyprus cannot offer the range of medical services available in Britian. Nor does it have a developed. network of social services to cater for those who have difficulty looking after themselves.
Insurance against illness
As the reciprocal agreement on social security between the United Kingdom and Cyprus does not cover health services you are advised to take a personal insurance against illness and accident which may be covered by some British insurance firms in Cyprus. Two such firm are the Norwich Union and Universal Life, member of the PPP.
Social security
A reciprocal agreement on social security (but not health services) between the United Kingdom and Cyprus is in force. Its purpose is to protect the benefit rights of those who move from one country to the other. Further information about the agreement as it affects the individual's position under the National Insurance Scheme may be obtained from:- the Department of Health and Social Security, Overseas Group, Newcastle - upon-Tyne, England NE98 lYX.
Income tax & estate duty
Information on this subject can be obtained from:- the Ministry of Finance, Department of Inland Revenue, Nicosia.
Private motor vehicles
Import of cars from abroad - New or secondhand cars may initially be imported into Cyprus under their foreign registration. Import duty is normally payable within three months (but this may be extended to six months) of the date of importation. The duty is assessed by the Department of Customs and Excise on the estimated value of the car at the time of importation. The rate is 105% on EC imports and 120% on others. Cars of up to 500cc attract in addition to the import duty an extra tax of £25, those up to l000cc, £50 and those up to l500cc, £75. Cars above l500cc attract £200 for every l00cc over 1500. See below regarding importation of cars by retired persons.
Registration - Cyprus registration must be taken out within three months of importation. The cost of registration is 10 to 15 CWT £70, 15 - 20 CWT £140, and 20 - 25 CWT £250 etc. Cars under 3 years old may be registered without any special formalities, but for cars over 3 years old proof must be produced that the importer previously owned and used it outside Cyprus for more than a year. Special authority is then required from the Inland Transport Department, Ministry of Communications and Works, Republic of Cyprus, Nicosia, before registration can be effected.
Domestic animals
An Import Licence is required and rabies quarantine is strictly enforced. Further information may be obtained upon application to the Department of Veterinary Services, Ministry of Agriculture and Natural Resources, Republic of Cyprus, Nicosia. All dogs should have collars and be licensed. In Municipal Areas the Municipalities are empowered to impound all dogs outside fenced gardens which are not on leads and controlled by their owners. Such dogs are kept by the Municipality for 48 hours and if not then claimed they are destroyed. In rural areas, the Police are authorised to shoot on sight any stray dogs.
Exchange control
The permission of the Central Bank of Cyprus is required for remittance of profits and repatriation of capital. Such permission is normally given in straightforward cases. Up-to-date details may be obtained from the Exchange Control Department of the Central Bank of Cyprus, or from the Bank of Cyprus Ltd, Nicosia.
Political situation in Cyprus
The political situation in Cyprus is that since 1974, the island has been effectively divided, with the Turkish-Cypriots controlling 36% of the territory of the Republic. There is a buffer zone between the two communities manned by UN troops and the situation is at present calm. In November 1983 the Turkish-Cypriot authorities unilaterally declared their territory the "Turkish Republic of Northern Cyprus" to be an independent state. Only Turkey has accorded it international recognition. Talks between the two communities have been held under the auspices of the United Nations Secretary General. The current round began in September 1988. However, there is no indication yet of when a settlement might be achieved, nor of its likely detailed provisions.
| Personal Income Tax Rates, Allowances and Credits |
|
Chargeable Income for Residents
|
|
|
%
|
Cumulative Tax
|
|
0
2000
4000
Over
|
2000 - Nil
4000 - 20
8000 - 30
8000 - 40
|
Nil
400
1200
|
| |
| Personal Allowances |
| Life insurance premiums and contributions to approved pension funds in Cyprus - subject to restrictions |
|
Whole
amount
paid
|
|
| Interest deduction on housing loans, up to |
CY£1,500
|
| |
| Personal Tax Credits |
Wife/ Husband
Dependent relative
Old age (over 65) |
200
100
200
|
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| |
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