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Cyprus is an island country in the Mediterranean Sea, a member of the European Union. The country is known for its warm climate, friendly atmosphere, tax incentives and high standard of living. In recent years, Cyprus has become a popular destination for emigration from the US due to its flexible migration policy, availability of property and business opportunities with minimal taxation.
This article covers all the important aspects of relocation, from legal requirements to financial costs, case studies and pitfalls to be aware of.
Legal aspects of relocation
Visa requirements for US citizens
US citizens do not require a visa to visit Cyprus for up to 90 days within a 180-day period. However, one of the following statuses must be obtained for an extended stay:
- Temporary residence permit (Pink Slip)
o Issued to foreigners who do not have the right to work.
o Valid for 1 year with the possibility of renewal.
o Does not entitle to permanent residence, but is suitable for long-term stay.
o Requires proof of sufficient funds for residence. - Residence permit on the basis of employment
o Issued to foreigners employed by Cypriot companies.
o Requires a work permit from the Department of Migration.
o Issued for 1 year, renewable depending on the contract. - Permanent Residency (PR)
o Can be obtained through investment or residence for more than 5 years.
o One of the most convenient options is the Fast Track PR program, which requires investments from 300 000 €. - Citizenship of Cyprus
o Can be obtained through naturalization (after 7 years of legal residence).
o Children and spouses of Cypriot citizens can obtain citizenship faster.
Financial costs of moving
Cost of Living
Cyprus offers lower living costs compared to the US. Here is a comparative analysis (based on 2024 data):
| Cost category | Cyprus (Limassol) | Cyprus (Paphos) | USA (New York) | USA (Los Angeles) |
| Rent 1k apartment, € | 1 500 € | 1 000 € | 3 500 € | 2 800 € |
| Utilities, € | 120 € | 100 € | 180 € | 160 € |
| Mobile communication, € | 20 € | 20 € | 50 € | 45 € |
| Products, € | 300-400 € | 250-350 € | 700-900 € | 600-800 € |
| Health insurance, € | 50-150 € | 50-150 € | 300-600 € | 400-800 € |
🔹 Conclusion: on average, living in Cyprus is cheaper than in major US cities.
Buying real estate
Buying a home in Cyprus is a common way to obtain permanent residency. Average real estate prices:
- Limassol: 3,500-5,000 €/m²
- Nicosia: 1,800-3,000 €/m²
- Paphos: 1 500-2 500 €/m²
- Larnaca: 2 000-3 200 €/m²
For comparison:
- New York: 10 000-15 000 €/m²
- Los Angeles: 7 000-12 000 €/m²
Conclusion: real estate in Cyprus is significantly cheaper than in major US cities.
Tax system
Cyprus is attractive to expats due to its favorable tax system.
Main tax rates
- Income tax: 0% on income up to 19,500 €; thereafter progressive scale up to 35%.
- Corporate tax: 12.5% (one of the lowest in the EU).
- Property tax: none.
- Capital gains tax: 20% (but there are exceptions).
- VAT: standard rate is 19%, for some goods and services it is 5% or 9%.
🔹 Conclusion: the Cyprus tax system is one of the most favorable in Europe.
Case studies
Moving a family with children
A family from California decided to move to Paphos. They bought a house for 350,000 €, did Fast Track PR and registered their children in a private British school (tuition fee – 7,000 € per year). Their living costs have dropped by 40% compared to the US.
Business relocation
An entrepreneur from New York started an IT company in Cyprus. The 12.5% income tax cut costs and the availability of an English-speaking workforce made it easier to do business.
Pros and cons of moving to Cyprus
Pros of moving to Cyprus
Low taxes and tax benefits
Cyprus is known for its favorable tax system, especially for entrepreneurs and highly paid professionals:
- Corporate tax – 12.5% (one of the lowest in Europe).
- No real estate tax – unlike in the US, where real estate tax can be up to 2% of the value of the property annually.
- Dividend tax – 0% for non-residents.
- Personal income tax:
- 0% on incomes up to 19,500 € per year.
- 20% on income from 19,501 to 28,000 €.
- 25% on income from 28,001 to 36,300 €.
- 30% on income between 36,301 and 60,000 €.
- 35% on income over 60,000 €.
- The “Tax Resident 60 Days” program is an opportunity to become a tax resident of Cyprus by spending only 60 days a year in the country.
🔹 Conclusion: the Cypriot tax system is one of the main factors attracting American expats, especially businessmen.
Affordable cost of living
Compared to the U.S., Cyprus has significantly lower housing, food and utility costs:
| Cost category | Cyprus (Limassol) | Cyprus (Paphos) | USA (New York) | USA (Los Angeles) |
| Rent 1k apartment, € | 1 500 € | 1 000 € | 3 500 € | 2 800 € |
| Utilities, € | 120 € | 100 € | 180 € | 160 € |
| Products, € | 300-400 € | 250-350 € | 700-900 € | 600-800 € |
| Health insurance, € | 50-150 € | 50-150 € | 300-600 € | 400-800 € |
🔹 Conclusion: moving to Cyprus allows you to significantly reduce your everyday expenses.
Excellent climate and ecology
- More than 320 days of sunshine per year.
- Average temperature in winter: +15°C, in summer: +30°C.
- Clean air, low pollution.
- Crystal clear water of the Mediterranean Sea.
🔹 Conclusion: a mild climate promotes a comfortable life, especially for those who cannot tolerate harsh winters.
High level of security
- Cyprus is among the top 5 safest countries in Europe in terms of crime rate (according to Numbeo).
- The crime rate is 75% lower than in the USA.
- Friendly local population and comfortable social environment.
🔹 Conclusion: the high level of safety makes Cyprus attractive for families with children and retirees.
Quality medicine
- The government health care system (GESY) is available to all residents.
- The cost of medical services is significantly lower than in the USA.
- Private clinics offer high level service (according to EU standards).
- Annual medical insurance: 50-150 €, in the USA – 300-600 €.
🔹 Conclusion: Cyprus offers quality medical care for reasonable money.
Friendly expat environment
- More than 80,000 expats from the UK, US and Europe.
- Communities of Americans help them adapt to their new lives.
- English is widely used in the business world.
🔹 Conclusion: a comfortable environment facilitates the adaptation process.
Cons of moving to Cyprus
Limited opportunities for high-paying jobs
- The average salary in Cyprus is 1,500-2,000 € per month, which is significantly lower than the USA.
- High salaries are available in IT, finance, and medicine.
- Competition for jobs among foreigners is high.
🔹 Conclusion: it’s better to move with an already remote job or business.
Necessity of investments for obtaining a residence permit
- Fast Track Permanent Residency requires an investment of 300,000 € in real estate.
- It is possible to get a free permanent residence permit only after 5 years of residence.
🔹 Conclusion: Cyprus is aimed at wealthy emigrants.
Slow bureaucratic process
- Business registration, obtaining a residence permit and other administrative issues can take 2-6 months.
- Often the assistance of an immigration lawyer is required.
🔹 Conclusion: you should consider time delays and plan ahead for your move.
Expensive real estate in popular neighborhoods
- Limassol is the most expensive city in Cyprus. A square meter can cost up to 6 000 €.
- In Nicosia, Larnaca and Paphos housing is cheaper, but growing in price.
🔹 Conclusion: it’s worth exploring different regions for a comfortable life.
Hot summer
- From June to September, temperatures can reach +40°C.
- It is difficult to live without air conditioning during this period.
🔹 Conclusion: heat can be a problem for some people.
Ограниченный общественный транспорт
- Public transportation is poorly developed.
- It is difficult to get around without a car.
- Cabs and car rentals are popular transportation options.
🔹 Conclusion: it is advisable to have your own car.
Bottom line: is it worth moving to Cyprus?
Moving from the US to Cyprus is a great solution for:
✅ Businessmen and investors – low taxes.
✅ Remote employees – cheaper than in the USA, but with European quality of life.
✅ Retirees – safe and comfortable environment.
✅ Families with children – good medicine and ecology.
But you should consider:
❌ High-paying jobs are hard to find.
❌ Invest in real estate is necessary to quickly obtain a residence permit.
❌ It is inconvenient to get around without a car.
How to prepare for the move?
- Documents
- Passport
- Birth/marriage certificates
- Financial documents
- Rental/purchase agreement
- Medical insurance
2. Moving things
- Container transportation (~3,000-7,000 €)
- Air transportation (~5 000 €)
- Buying new furniture in Cyprus (often cheaper than transportation)
Conclusion
Moving from the US to Cyprus is a great solution for those looking for a comfortable life, tax advantages and a stable economy. However, it is important to consider bureaucratic formalities and plan your budget carefully. Cyprus offers favorable conditions for business and investment, but requires careful attention to the relocation process.
🔹 Recommendation: consult an immigration lawyer and conduct a detailed financial analysis before making a decision.
Moving from the US to Cyprus is a great solution for those looking for a comfortable life, tax advantages and a stable economy.
