There are many reasons why people and their families choose to take up residence in another country like Cyprus. They may wish to start a new life elsewhere in a more attractive and relaxing environment, or they may find the greater political and economic stability offered by another country appealing. Whatever the reason, it is essential to research and plan ahead, as much as possible.
Residency programs vary in what they offer, and depending on the country, there are differences in how to apply, the length of time the residency is valid, what the benefits are, tax obligations, and how to apply for citizenship. For people considering an alternative country of residence, the most important decision is where they and their family would like to live. It is critical that clients consider long-term goals for themselves and their families, before applying for a particular residency (and/or citizenship program), to help ensure that the decision is the right one for now and in the future.
The main question is: where would you and your family like to live? The second, almost equally important question is: what do you hope to achieve?
Moving to Cyprus
Cyprus has quickly become one of Europe’s main hotspots for expats. If you’re considering a move and are a bit of a sun chaser, Cyprus should be at the top of your list. The island offers a warm climate, good infrastructure, a convenient geographical location, EU membership, tax advantages for companies and incentives for individuals. Cyprus also offers an excellent private health sector, high-quality education, a peaceful and friendly community, and a low cost of living.
In addition to that, people are attracted to the island due to its advantageous non-resident tax regime, whereby non-domiciled Cypriots benefit from a zero tax rate on interest and dividends. These zero tax benefits are enjoyed even if the income has a Cyprus source or is remitted to Cyprus. There are several other tax advantages, including a low tax rate on foreign pensions, and there are no estate or inheritance taxes in Cyprus.
People who want to move to Cyprus can apply for a permanent residence permit, which is useful as a means of facilitating travel to EU countries and organizing business activities in Europe. Applicants can make an investment of at least €300,000 in one of the investment categories required by the program and demonstrate that they have an annual income of at least €30,000 (which can be from pensions, employment abroad, interest on fixed deposits or rental income from abroad) to apply for permanent residence. If they choose to reside in Cyprus for seven years, in any ten calendar year period, they may be eligible to apply for Cypriot citizenship through naturalization.
Alternatively, a temporary residence permit can be obtained by establishing a foreign investment company (FIC). This type of international company can obtain work permits for relevant employees and residence permits for family members. Again, a key advantage is that after seven years of residence in Cyprus, within any ten calendar year period, third-country nationals can apply for Cypriot citizenship. If you’re looking for legal counsel about moving, try a law firm in Nicosia which will help you with the necessary preparations.
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I have never really thought of it but you have made some really valid points x #mmbc