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Latest news on the application to the European Union.(Courtesy Cyprus Mail) Cyprus has now completed the accession negotiations to the European Union.Therefore it has been invited to join the European Union on Mayday 2004. Nine other countries will join on that date making the membership of the EU 25 countries. There will be many changes afoot with the laws and regulations now in Cyprus to comply with European Union legislation. Talks are ongoing to find a solution to the Cyprus problem which everyone hope will mean a united Cyprus joining the EU in 2004. However it was not a pre-requisite for the Republic of Cyprus to become a member.	Larnaca Weather Click For More Info.
CYPRUS ITSELF. The island has a lot to offer both the foreign resident and the holidaymaker.  If you come to this island to make it your second home, knowing what to expect can help you to adjust and make the most of your new environment.  Being fully aware of some matters that can affect your daily life, you can avoid unpleasant surprises and ensure that life in your new home in Cyprus will be a truly sunny experience. Cyprus is the third largest Mediterranean island after Sicily and Sardinia. It has a population of circa 750,000 with an area of 9.251 sq. km.  The history of the island dates back to the Neolithic Age.  Historical and Archaeologically valuable sites are only a few kilometres away from modern cities.  Cyprus is a fascinating mosaic of time combining the old with the new. The islands landscape, with sandy beaches and rugged coves which border the central plain that rises up to the pine covered mountains with several attractive ski slopes in the winter.	Click Pictures for  a larger view
PEOPLE OF CYPRUS During your time in Cyprus, you will learn the true meaning of hospitality. Cyprus is rightfully called the island of love. The people of Cyprus owe their individuality to the fact that they are the products of the amazingly rich history of an island at the cross-roads of three continents. Within a very short space of time, visitors can make friends and find themselves fully intergrated.
GOVERNMENT & INTERNATIONAL RELATIONS Cyprus is a republic based on a constitution written in 1960 after independence from the British, who still maintain Sovereign bases on the island. The President is the Head of State who is elected for a five-year term. All citizens aged over 18 can vote in the elections. Legislative power lies with the House of Representatives which is composed of 56 members each elected for a five-year term by a system of proportional representation. Human rights and private property are safe guarded by the constitution. Cyprus is a member state of the United Nations, the Commonwealth, The Council of Europe and an associated member of the European Union. Full membership is expected by 2004.
THE CYPRUS "PROBLEM" In 1974 the Turkish army invaded Cyprus and after an intense military offensive captured 36% of the island. There are many books available on the Cyprus Problem. The captured area is still occupied today and lies in the North of Cyprus with the island being separated by the "Green Line". Subsequently, access between the North and South is restricted. Negotiations are taking place to bring a united Cyprus into the EU
HEALTHCARE & MEDICAL SERVICES The health risks involved when travelling to Cyprus are minimal. No specific vaccinations are required except those travelling from infected areas are required to have smallpox, cholera and yellow fever vaccinations and tetanus boosters should be up to date for everyone. It is wise to drink bottle water or boil the tap water as in most European countries. Skin protection against the strong sun should be used at all times.  The health care service is of a very high standard and available to everyone, and you will probably find that the doctors have qualified in either the UK or USA. Paphos provides a new General Hospital, which is equipped with the latest medical and surgical technology. Private treatment is also available. We recommend the services of Roger Brooke who lives and works in Cyprus for your medical insurance. See his information on the services page for links to the rate card and a direct e-mail link to Roger. Medical Insurance Enquiry

TOWNS
Larnaca and the South East

Larnaca is fast becoming a very popular are to live and work or even retire. The area is flat and excellent for walking whereas Paphos is very hilly. Larnaca boasts a beautiful sea front marina and harbour and is home to Larnaca International Airport which is the main airport in Cyprus. It is perhaps less popular with tourists but does appeal to expatriates seeking a better lifestyle. The sea front promenade has recently be improved and is now a very pleasant area lined with cafes and tavern's. There are a number of museums, theatres and cinemas and it is a very popular destination for water sports enthusiasts. As a result of its relative lack of tourists, renting or buying in Larnaca can be cheaper than other coastal resorts which could be a deciding factor when thinking about moving to this very welcoming town and its friendly people. The prices are rising though as more people look away from Paphos and its high property prices. There has been a noticeable increase in prices during 2002.

Nicosia

This is the only divided capital left in Europe and is separated by the "Green Line" which is the United Nations buffer zone separating Greek and Turkish area's of Cyprus. There is only one crossing point near the Ledra Palace Hotel with a no-mans land on the other side. The old city stands within Venetian walls which date back more than 400 years, with many of the streets having been pedestrianised. Housed within these walls are a number of shops as well as the Cyprus Museum, St John's Cathedral and some Byzantine churches. Beyond the walls is the new city, which is home to more shops, modern hotels and offices, schools and suburban districts. Nicosia is a cultural city and is host to a cultural centre, an arts centre, and a number of theatres and cinemas. An expatriate living here would rarely be short of things to do. 

Limassol and the South West

Limassol is the second largest town in Cyprus and is the main industrial port for the island, with a constant stream of ships on the horizon. It is a very popular tourist destination having only recently been usurped by Ayia Napa as the most popular resort in Cyprus. The town is full of tavern's and cafes and has a popular shopping area in the old town near the castle known as St Andrew's Street. The main strip along the sea front stretches from the old port for over 15 klms along to Amathus and the large hotel complexes. Behind the lines of hotels lien apartments and schools with the main housing area's being located further back again. Limassol has many amenities such as gardens, theatres, cinemas and a thriving night life. There are nearby historical attractions such as Kolossi Castle and the ancient Roman site of Kourion. Limassol is very much a working town which means there is something happening all year round.

Paphos and the West

Paphos is a town divided into two main area's. Kato Paphos and Paphos. Both are part of a thriving, year round resort that combines the old and the new through its rich historical sites and modern hotels, bars and night-clubs. There a a number of excavated Roman villas which ensure a large number of tourists visiting the town throughout the year. Kato Paphos is the lower part and runs along the harbour and is home to many tourist attractions including bars, taverns and night spots, not forgetting the shops. Paphos itself is home to the more commercial side of the town with shops and offices. There is a large number of new housing developments in and around Paphos to cater for its growing popularity with expatriates. The airport is close to Paphos and is undergoing many improvements. Further west are the towns of Polis and Latchi. Smaller quieter resorts which are becoming more developed but still retain much of the original character. 

Troodos Mountains

The spectacular scenery is a particular enticement to those who choose to make the mountains their home. There is a great deal of peace and quiet to be found at 1400 metres above sea level and many Cypriots have weekend homes in the mountainous villages where they go and relax in their spare time. There are many tourist excursions which run in the Troodos mountains to area's such as Omodos which is a restored conservation village and the Kykkos monastery, but it is not a tourist resort for those seeking sun and sea. Skiing is popular in the winter. For those expatriates wishing to live the simple life and experience the real Cypriot ways, living in a village such as Prodomos or Platres could be ideal. There is obviously less in the way of amenities and a car is essential. Many villages are only a short drive from urban area's that provide more in the way of entertainment. Most villages will always have a tavern or two.

CLIMATE
The climate on the island is mild winters and hot dry summers.  The average daytime temperature in winter is about 10-13C and 26-29C in summer.  Cyprus enjoys 300 sunny days a year which in summer is an average of 11 hours each day and in the winter months of December and January the average of 6 hours.  In winter the Troodos Mountain range provides good skiing conditions.
 

Temp	Jan	Feb	March	April	May	June	July	August	Sept	Oct	Nov	Dec
Min (C)	7.9	7.7	9.3	11.1	14.8	18.8	21.1	21.8	19.3	16.1	13.5	9.7
Max (C)	16.6	16.9	18.5	22.2	25.9	29.7	31.8	32.7	30.5	27.1	22.7	18.6

BANKING
A prerequisite to living and working in Cyprus is to open a Local Disbursement Account (LDC) with a bank in Cyprus. There are a number of banks to choose from which are well regulated by the authorities. The currency in Cyprus is the Cyprus pound (CYP) which is made of of 100 cents to the pound.  The local banks are;

• Alpha Bank Ltd
• Bank of Cyprus Ltd
• Co-operative Central Bank Ltd
• The Cyprus Popular Bank (LAIKI) Ltd
• Hellenic Bank Ltd
• Universal Savings Bank Ltd

These banks are only open between the hours of 08.15 - 12.30 Monday to Friday, throughout the year. A number of international banks are also represented in Cyprus, but an LDC must be opened upon moving to Cyprus as it is intended to provide for the expatriates living expenditure on the island. LDC accounts may be debited for cash withdrawals and living expenses but should not be debited for the purchase of duty free vehicles or the acquisition of property. There are convertible accounts known in Cyprus as External Accounts which can be traded in any currency and it is these that should be used for payment of vehicles and property.

Local currency is not accepted for deposit in an LDC. These accounts may only be credited with amounts transferred from convertible accounts held in Cyprus or abroad. Upon departure from Cyprus any residual balance in an LDC account can be transferred to any convertible account either in Cyprus or abroad.

The Cyprus currency is the Cyprus Pound often seen as CY£.  There is a well developed banking system in Cyprus that caters for the needs of everyone from Businessmen to individuals. There are about five major banks on the Island, which includes, Bank of Cyprus and Hellenic Bank. All of the banks in Cyprus adhere to the British method of banking.

QUALITY OF LIFE
The standard of living is higher than the per capita income alone can express. Outside of the main towns It is virtually pollution free. The crime rate is only 1/6 of the average crime rate in Europe, which makes Cyprus a very comfortable island to live on  with excellent housing conditions. VAT from 1 January 2003 is 15%

A couple wishing to live in Cyprus could easily have a comfortable lifestyle from CY£5,000 to CY£6,000 per year.

EDUCATION
It is your responsibility to check these fee's. They are provided by us for guidance only.
The children of expatriates in Cyprus normally attend an independent or foreign school. These can be found in all the major towns and offer high standards of education.

Nicosia
American International School in Cyprus (AISC) Tel; 00 357 22 316345. Ages 3 - 19
Annual fee's US$ 7000 - 10,000 day or boarding.

Falcon School Tel; 00 357 22 424781  Ages 3 - 18 Annual fee's CYP1750 - 2500 day only.

Junior School  Tel 00 357 22 664855   Ages 3 - 12 Annual fee's CYP1276 - 2122 day only.

Highgate Primary School  Tel; 00 357 22 780527 Ages 2- 13 Annual fee's CYP900 - 1650 day only

Larnaca
American Academy Tel; 00 357 24 652046 Ages 5 - 19 Annual fee's CYP1578 - 1925 day only

Mediterranean High School (Med High) & (Med Junior) Tel 00 357 24 664733  Fee's from CY£1680

Limassol
Foley's Grammar and Junior School Tel; 00 357 25 582191 Ages 4 - 18 Annual fee's CYP1740 - 3600 day only

Logos School of Education Tel; 00 357 25 336061 Ages 3 - 18 Annual fee's CYP1113 - 4550 day or boarding

Paphos
International School of Paphos Tel; 00 357 26 932236 Ages 3 - 18 Annual fee's CYP900 - 2000 day pr boarding

LANGUAGE
Greek is the official language in Cyprus, but most people will speak in English. If you try to speak to a Greek in their language, they will reply to you in English. Street and road signs are all in dual languages, which makes it easy for everyone to find their way around.

TRANSPORT
The islands two international airports are situated in Larnaca and Paphos Larnaca together with Limasol also has a deep water port. Cyprus is the major cruising centre in the region with most international cruise liners calling into its ports. Residents and visitors can take advantage of exciting cruises to Greece, Egypt and Israel. Driving in Cyprus is on the left, there is a new highway between Paphos and Limassol which makes travelling that little bit easier. A visitor holding a valid driving licence from his country or an international drivers licence is allowed to drive in Cyprus.

BUSINESS ENVIRONMENT AND LOW TAXATION
Cyprus has significant tax benefits fon non-domiciled persons. From January 2003 changes to the tax system take effect.
The tax year in Cyprus is the calendar year. Husband and wife are taxed individually.

One important change is that upto January 2003 there was no minimum period of stay in Cyprus before being regarded as a tax resident. As from January 2003 you will be regarded as "tax resident" if you spend more than 182 days in a calendar year on the island. A part of a day counts as a whole day. Spending less than 183 days, from January 2003 you will not be regarded as resident for tax purposes. To take advantage of the Double Taxation treaty Cyprus has with the U.K. you will have to be in Cyprus for more than 182 days.

The information below  is intended as a guide only and advice should always be sought from a qualified advisor. No responsibilty will be accepted by living-cyprus.com for errors or omissions. The advice is CHECK first.

Tax scale rates:	2003	2004
Standard Income tax rates from 2003.	Upto cy£9,000 @ 0% cy£9001 - 12000 @ 20% cy£12,001 - 15000 @ 25% Over cy£15,000 @ 30%	Upto cy£10,000 @ 0% cy£10,001 - 15000 @ 20% cy£15,001 - 20000 @ 25% Over cy£20,000 @ 30%
Tax changes due to EU entry	Before 1st January 2003	After 1st January 2003
Pension income tax rate	5% over cy£2000 with an option to choose the standard rate. "Based on remittances to Cyprus"	5% over cy£2000 or choose the standard rate based on "World Wide income"
Pension income	This applies once you are classed as resident for tax purposes, i.e. once you have been in Cyprus for more than 182 days in a calendar year. The days do not have to be consecutive!	Income from pensions for employment outside of Cyprus, is taxable on a world wide basis, and you can choose which method is best for you. The rate above or use the standard rate as at the top of the table. Note the rates change in 2004
Bank interest Tax rate	5% over cy£2000 based on remitted funds	10% based on world wide income
Dividends	5% over cy£2000 based on remitted funds	15% world wide less taxes paid oversea's if any
Wealth Tax	None	None
Capital gains tax on Cypriot home: Other Cypriot real estate: Other assets:	First cy£50,000 tax free Taxable at 20% fixed rate Tax free	First cy£50,000 tax free Taxable at 20% fixed rate Tax free
Property; outside Cyprus In Cyprus	None Scale income tax plus 3% defence contribution on 75% of the income	None Scale income tax plus 3% defence contribution on 75% of the income
Inheritance & gift tax	None (But you may be liable to UK  tax)	None (But you may be liable to UK  tax)
Rental income from outside Cyprus	No tax is due because this is normally taxed in the country where the property is situated	No tax is due because this is normally taxed in the country where the property is situated
Rental income from in Cyprus It is expected that you will be able to buy more than 1 property when Cyprus is an EU member.	Scale rates after scale deductions for repairs, 3% depreciation, not on the land cost, loan interest. In addition after deducting 25% of the gross rent, there is a 3% defence tax.	Scale rates after scale deductions for repairs, 3% depreciation, not on the land cost, loan interest. In addition after deducting 25% of the gross rent, there is a 3% defence tax.

DUTY FREE PRIVILEGES
Foreigners residing in Cyprus enjoy the benefit of buying motor vehicles and household appliances at duty free prices. As an example of this substantial benefit, the duty free price of a medium size saloon will be half of the UK price. These items do not have to be imported but can be purchased locally. There is no advice yet on when duty free status for cars will end but it will end when entry to the EU is finalised expected to be Jan 2004.

FOOD, ALCOHOL AND TOBACCO
All the markets in Cyprus provide a colourful variety of produce, which are always reasonably priced. The large supermarkets are stocked with local and imported goods. Restaurants are of excellent quality and inexpensive.

Try a “meze” this is a selection of local dishes (usually between 15 – 28 dishes) this gives you a chance to sample the local food without ordering a main course dish and finding you don't like it.

Local wines and spirits are reasonably priced and good value. Imported beers are also available but Keo and Carlsberg are the most popular brands, costing approx. 48 cents per bottle. Cigarettes are around £1.20 for a packet of 20.

RESIDENCE PERMIT
The Cypriot regulations regarding visas depend on the nationality of the visitor. For example, those with passports endorsed by the Turkish Republic of Northern Cyprus will find themselves subject to restricted entry. A valid passport without visa will provide a stay of up to 90 days for all bona fide visitors. There will be changes to these regulations once Cyprus joins the European Union on Mayday 2004

Persons entering as visitors are not allowed to take up any form of employment or engage in any business. Travellers arriving in Cyprus may enter only through the legal ports of entry, Larnaca Port or Airport, Limassol Port and Paphos Airport or Port. In order to remain in Cyprus for longer than 90 days, an application must be made for a Temporary Residence Permit.

People wishing to retire in Cyprus must make an application to the Chief Immigration Officer in Nicosia for an Immigration Permit. Under the current legislation, a short Curriculum Vitae is required along with documentary evidence that access is available to a secured annual income such as a pension or dividends from investments. This annual income must be at least CYP3800 per person plus CYP1800 per dependent. Once the immigration permit is approved a retired person is not allowed  to engage in any form of business profession or occupation, whether paid or unpaid whilst residing in Cyprus.

Those coming to live and work will need to obtain a Temporary Residence and Employment Permit if they are not holders of Cypriot passports. However, the regulations about starting or owning a business in Cyprus have now been relaxed and you can have a local company without the requirement for a Cypriot partner. Our associated Lawyer can assist with all the necessary documentation and finding of business and franchises. Please go the the business section for further information. The address for Immigration is Migration Department, Ministry of the Interior, 1457 Nicosia. Tel; +357 22 804502. E-mail

The current policy on employment states that a work permit will only be given on a temporary basis and for a specified position provided that no suitable qualified Cypriots are available. A local Cypriot employer must first be secured (or set up your own local company) and it is they who submit an application to the Migration Officer in Nicosia. This action must occur while the Foreign National is outside Cyprus except in the case of EU Nationals. Initially the permit will be valid for 2 years. but thereafter for 3 years. If a change of employer is made whilst in Cyprus, an application for a new permit must be made. A word of warning here; working illegally in Cyprus can result in prosecution and deportation. It is expected when Cyprus becomes a member of the EU in 2004, any EU National will be able to work there as part of the European Union Treaty.

Offshore employees coming to Cyprus have different legislation. Executive and Managers must apply for a Temporary Residence and Employment Permit through the Central Bank of Cyprus with a form obtained from their lawyer or accountant. Permits are granted quite readily in these instances. Non Executive staff however, must apply through their relevant District labour Office and often permits are only granted if there are no qualified Cypriots available.

WORKING IN CYPRUS
With the changes in the laws recently in Cyprus, we can now assist you to set up a local business, an off shore business, purchase a franchise or just to work. Please go to the business advice section for further information on these services. 

PROPERTY
As in most other countries, there are many regulations regarding buying a property in Cyprus and it can be a lengthy process. A non Cypriot can acquire one only immovable property. In the case of land for the erection of a dwelling for residency, the area allowed for non Cypriots is 2 Donums or approximately two thirds of an acre. This cannot be done without approval of the Council of Ministers, but in most cases this is just a formality. Your lawyer should ensure that your conveyancing contract contains a clause to protect you should your application be refused. Please be aware that permission is usually granted for personal use and not for letting or commercial gain.

Your conveyancing contract is filed with the Land Registry within two months of being signed, thus preventing the vendor from selling the property a second time.

In terms of Mortgages, it is generally permitted to borrow up to 70% of the lower valuation and purchase price for between 5 and 15 years. The minimum loan is usually around CYP25,000. Most of the major developers offer payment plans that are comparable to mortgages. An example could be paying one third of the price at the contract stage, another percentage at the possession stage with the remainder being paid in monthly instalments. Towry Law are able to assist you with all your financial planning requirements. The link is on the Services page.

ESTIMATED ANNUAL OUTGOINGS FOR AN AVERAGE SIZE PROPERTY IN CYPRUS

Water rates (payable Quarterly)	£32.00
Electricity (includes heating and TV Licence)	£160.00
Municipal (Refuse collection)	£45.00
Insurance (House & Buildings)	£130.00
Car Tax (1600 cc)	£85.00
Car Insurance (Fully Comprehensive)	£205.00
Food for two people (approx. £60.00 per week)	£3,120.00
£3,777.00

Divide £3,777.00 by 12 = £320 per month

Not Included in the above are:
 

Petrol – about 45.2c per litre	Diesel – about 31c per litre
Health Costs – Prescriptions - £6.00 average	Private healthcare starts at  £25.00 per Month.
Doctors & Clinics £10-15.00 per visit.
All of the above costs are in £’s Sterling and are average only