What it really costs to move to Cyprus: You’ll get tax benefits, a much cheaper cost of living and more affordable property

For a few years, Sue and Allan Griffiths thought they may retire to Spain. Summer time after summer season they returned to the south-eastern area of Murcia on vacation and dreamed of residing there completely. However in 2022, they pivoted to Cyprus and ended up transferring to the village of Xylofagou final 12 months.

‘After Brexit we did not really feel as welcome in Spain any extra,’ says Allan, 74, from Sandbach in Cheshire, who labored as a plant rent supervisor till he was 70. ‘In Cyprus we found a non-judgmental ambiance, a really accepting individuals – and lots of extra pluses.’

Sue, 69, a self-billed ‘workaholic’ who retired final 12 months from the Challenge Administration Institute, says that, local weather apart, she loves many points of Cyprus: the truth that English is broadly spoken, that they drive on the identical facet of the highway and use the identical electrical plugs. ‘However there are additionally the tax advantages and the truth that again dwelling we might by no means be capable of reside in a home like we now have now.’

Initially from Wiltshire, the couple had additionally lived in Wales and the Cotswolds. After promoting their three-bedroom dwelling in Cheshire they purchased a four-bedroom villa with a big backyard and 32ft infinity pool in Famagusta.

The Famagusta area straddles each Greek Southern Cyprus and Turkish Northern Cyprus. British patrons equivalent to Sue and Allan are inclined to favour the Greek facet, with Ayia Napa and Protaras most ­fashionable, regardless of being costlier than the Northern facet, the place the Turkish lira is the foreign money.

The couple reside 12 miles from the border with Northern Cyprus. ­Located behind electrical gates, the five-year-old open-plan property value €350,000 (£296,000), leaving funds spare for his or her new life.

Most British retirees spend lower than this, in keeping with Sarah ­Hordle of agent Island Houses Cyprus, who says: ‘Many have a price range of €200,000 to €300,000, which can purchase a three-bedroom dwelling with a pool in a village.’

This cash used to go additional, however demand has been pushing up costs. In 2023, Cyprus noticed the best variety of gross sales to abroad patrons for the reason that market peak of 2007, in keeping with the island’s Property Value Indices, with costs within the Famagusta province up 9.5 per cent final 12 months

A part of the attraction of this nook of the island is its relative affordability: gross sales from abroad patrons in Famagusta and ­Larnaca have been growing at a quicker price than in Paphos, ­in keeping with the Division of Lands and Surveys, though the full of property purchases going to Paphos stays far increased.

Sue says they had been eager to not reside in a vacationer village however to be a part of a blended Greek and expat group. ‘I am having Greek ­language courses so I can ­talk with our Greek neighbours.’ Xylofagou – between Larnaca and Ayia Napa – is a ‘pink soil’ ­village, famed for rising potatoes. ‘We checked out Paphos however discovered it a bit too British,’ she says of the expat hotspot within the west of the island.

Cyprus stays a preferred different to Spain for retirees for the explanations Sue and Allan have detailed. Whereas official figures are scant, Cypriot international minister Ioannis Kasoulides final 12 months mentioned that about 40,000 Britons reside within the former British colony, together with many who had been stationed at navy bases there. Common residing prices in Cyprus are about £723 a month, in keeping with ­numbeo.com, which is 11.9 per cent lower than the UK.

Within the UK, the sum of £43,100 a 12 months is required for a pensioner to take pleasure in a cushty retirement, in keeping with The Pensions and Lifetime Financial savings Affiliation (PLSA), or £31,300 for a ‘average’ life-style. By comparability, in Cyprus retirees can reside comfortably on about £1,689 a month, in keeping with Peter Savvas of Paphos Relocation Companies.

A phenomenal seaside scene close to Cape Greco in Cyprus

Nevertheless, Allan reckons he and Sue reside comfortably on £1,390 to £1,432 a month, drawn from financial savings, the proceeds from the sale of their UK dwelling and their state pensions. However they do not miss out on pleasures equivalent to lunch at Zephyros, their favorite waterfront restaurant in Larnaca, the place they benefit from the fish meze or the seabass, for round £33 for 2.

‘However after we eat in our native village restaurant it is cheaper,’ says Allan. ‘Final week, 5 of us – together with a pal from the UK and a neighborhood couple – had a meal with two bottles of wine and beers and it got here to a complete of £112.’

Sue loves the Cypriot wine and says a bottle in a restaurant tends to be £13 to £21, however she will be able to get a really good Sauvignon for £5.90 within the grocery store. A beer in a bar is round £3.35.

The couple’s weekly store is roughly £42, however their council tax is just £47 a month (in comparison with £218 in Cheshire), with different month-to-month prices £84 for electrical energy, £35 for water, £51 for cell/broadband and home insurance coverage £337 a 12 months. Automobile insurance coverage is £286 a 12 months and gasoline £126 a month.

Being over 65 and residents, they had been capable of apply for the Cypriot Normal Well being System (Gesy), which is free, by getting an S1 Certificates from the NHS within the UK. ‘The healthcare is second to none,’ says Sue who, following again points, had an operation which was free. ‘I needed to pay for an MRI scan, which was £236, however that’s low in comparison with the UK.’

The couple lately loved a meal with one other three buddies, with two bottles of wine and beers, and the invoice got here to a complete of simply £112

She’s hoping to restart Pilates courses, has joined the Jap Cyprus Strolling Group they usually’ve simply tried paddle-boarding: ‘Enjoyable however not very profitable!’

Allan, a eager golfer who used to play 3 times every week in Cheshire, has joined the Famagusta Golf Society, which provides him a spherical of golf for £59 to £75 as an alternative of the full-price of £152.

‘The programs are unbelievable – I just like the programs at Secret Valley and Aphrodite Hills nevertheless it’s a disgrace that the golf programs are largely over on the Paphos facet of the island – the drive takes round an hour and three-quarters.’

Whereas Allan’s {golfing}, Sue will meet a pal and head 20 minutes away to Larnaca for a spot of ­buying within the mall or do some cleansing. ‘The pink mud of the ­village will get in every single place within the white villa,’ she says.

One of many solely different minor ­irritations about their new life is an absence of Amazon deliveries. ‘Now we have Amazon Germany, which prices means an excessive amount of, so we have a tendency to purchase regionally.’

Getting their automobile shipped over has additionally taken almost 9 months of paperwork – Allan and Sue usually are not alone in saying that it’s much more difficult than acquiring the required paperwork for themselves (see field) – there’s positively the siga, siga (slowly, slowly) method to forms.

One other draw back for some is an absence of public transport. The couple, who at all times needed to reside someplace sunny, don’t appear bothered by day by day temperatures of 33 levels at the moment – or the truth that they recurrently hit 36 levels or extra. Allan describes ­swimming within the sea at Fig Tree Bay seaside in Protaras (among the many finest in Europe on TripAdvisor) on Christmas Day, adopted by Christmas dinner at dwelling.

‘Some British individuals return to the UK in peak summer season, however we can’t do this. We do not intend to return to the UK – we have got used to life right here. If it will get too scorching, we are able to at all times escape to the Troodos Mountains, the place it is cooler.’

Sue says they go to their 33-year-old son Adam in Berlin yearly, or he visits them for a number of weeks at a time, whereas additionally they see their different son, Philip, 29, in London, as a lot as doable. Allan’s oldest son, who lives in Wiltshire, is planning to go to along with his two teenage kids in 2025.

‘We really feel very faraway from the UK already,’ says Sue on the ­topic of the brand new Labour authorities, as she will get prepared for a visit to Troodos for climbing and wine tastings. ‘The sunshine makes your entire angle to life brighter,’ she provides.

VISA RULES POST BREXIT 

Publish-Brexit guidelines imply the one means you’ll be able to legally keep in Cyprus for greater than 90 out of 180 days is to get a visa. Nevertheless in case you are married to somebody with an EU passport it is simpler – you’ll be able to apply for residency as their dependent. Additionally, when you hung out in Cyprus throughout 2020 (and may show you probably did), you’ll be able to apply for a five-year short-term visa, in keeping with Peter Savvas.

Guidelines are regularly altering on residency so it is key to get up-to-date recommendation and never look on-line. Considerably, too, the monetary sources required have been elevated: the beforehand fashionable ‘Class F’ visa has lately been suspended and residency schemes can be reviewed in 2026.

As issues stand, the plain choice for newly arrived retirees is the customer visa, which is renewable yearly for 5 years, after which era you could possibly apply for everlasting residency.

For the customer visa you don’t want to purchase a property, though when you do personal one the worth could also be thought-about as a part of your monetary sources – in any other case a rental contract is required to register at Cypriot Immigration as guests, says Sarah Hordle.

‘You must arrive in Cyprus together with your UK sourced documentation [including an ACRO police check], discover your property and you’ll get an appointment [at ­Immigration] inside 90 days.’

The method could be faster within the Paphos district.

You additionally want to indicate proof of medical health insurance cowl, except you’ve gotten an S1 certificates that enables you free entry to Gesy. Nevertheless, you might be additionally required to pay £370 per 12 months (joint value) for repatriation insurance coverage – for the primary 5 years.

For the primary 12 months, it’s worthwhile to present that you’ve got €10,000 (£8,428) in a Cypriot financial institution, plus €2,000 (£1,685) for a partner, however for each subsequent 12 months it’s worthwhile to present you’ve gotten a minimum of €6,000 (£5,057) there, plus proof of ‘enough and secure’ sources, derived from exterior Cyprus, which might be a pension, deposits in a checking account, rental revenue or ­dividends. ‘Revenue is important but when not fairly sufficient, vital financial savings can be taken under consideration,’ says Sarah.

The revenue have to be a minimum of €2,000 (£1,685) per thirty days or €24,000 (£20,228) per 12 months for one individual, with one other 20 per cent for the partner – so €28,800 (£24,352) for a pair. That is barely above the £23,004 revenue of two UK state pensions.

For the much less fashionable fast-track everlasting residency (or Class 6.2) it’s essential to have deeper pockets. You might want to purchase a new-build property for a minimum of €300,000 (£253,000) plus VAT (5 or 19 per cent, relying on worth/measurement) and in addition present revenue of €50,000 (£42,141) per 12 months for the primary applicant and one other €15,000 (£12,642) for the partner. Neither visa permits work.