The Pros and Cons of Living in Cyprus: Expat Edition

The appeal of Cyprus’s Mediterranean life cannot be underestimated. A relaxing island lifestyle, stunning coastal views, endless sunshine, and vibrant culture make living in Cyprus highly appealing. The statistics speak for themselves as Cyprus receives the third–highest number of migrants from Europe. 

If you’re considering moving to Cyprus, we’ve put together an informative guide on the pros and cons of living there to help you make your decision. Keep reading to learn more.

1. Attractive Property Prices 

Real estate prices in Cyprus are highly affordable compared to Western Europe. In addition to low monthly rents for modern city apartments, property prices are also highly attractive to expats looking to put down roots. On average, properties in Cyprus are sold at £2,600 (€3,000) per square metre in the city centre, and outside of city centres, you’re more likely to see prices around £2,000 (€2,300). Average housing prices for the top cities in Cyprus include Limassol at £5,500 (€6,400), Nicosia at £2,100 (€2,500), Larnaca at £1,300 (€1,500), and Paphos at £ 1,700 (€ 2,000).

2. Low Cost of Living 

The cost of living in Cyprus is approximately 12% cheaper than in the UK. Living expenses are low, but at the same time, the quality of life is high, owing to Cyprus being one of the safest countries in the world. Cyprus’s affordable cost of living is part of the reason why the country’s relaxed island lifestyle appeals to expats, as it contributes to a positive work-life balance.

3. Tax Benefits 

Cyprus offers a business-friendly tax environment and several incentives for residents. The well-known 12.5% rate refers to corporation tax; personal income tax is progressive, but not a flat rate. For homebuyers, a reduced 5% VAT can apply to part of a qualifying primary residence (subject to size/value criteria), with any remainder charged at the standard 19% VAT. There is no annual state property tax (abolished in 2017), but owners do pay local municipal and sewerage fees, which vary by area. Always seek personalised advice from a Cyprus-qualified tax adviser.

4. Premium Healthcare 

High-quality healthcare is one of the top reasons why Cyprus is sought after by expats. IVF, dentistry, orthopaedics, and cardiology are among the most popular healthcare branches for foreigners. In 2023, Cyprus’s healthcare system ranked 29th globally, surpassing the United Kingdom, Canada, Greece, and Portugal. It’s worth noting that healthcare for UK nationals living in Cyprus is not necessarily free, and this will depend on certain factors like your employment, income and more.

5. High Economic Growth

Cyprus’s economy has been growing rapidly, with tourism alone accounting for a large portion of that growth. Following a decline in GDP growth during the 2020 pandemic, the country’s economy bounced back quickly with a GDP growth rate of 6.6% in 2021. Cyprus’s low tax levels have allowed several international companies to prosper.

6. Ease of Obtaining a Residence Permit 

For EU/EEA citizens, gaining residency in Cyprus is straightforward. Register for the MEU1 “yellow slip” within four months of arrival, and you can live and work in the country. Non-EU nationals have several pathways, but each has clear requirements, such as employment with a Cyprus company (or an EU Blue Card for highly paid roles), the Digital Nomad Visa for remote workers earning at least €3,500 net per month, the visitor “Pink Slip” for up to one year without work rights, or permanent residency by investment starting from €300,000 with defined income thresholds. Always check the latest rules before applying.

1. Political Divide

The Greek-Turkish divide is a pivotal part of Cyprus’s history and has resulted in political instability. Put simply, the island is divided into two by the Green Line: the north for Turkish Cypriots, and the south for Greek Cypriots. In recent years, the situation has been stable, but it is something to be aware of for those moving here.

2. Rising Electricity Prices 

Electricity rates are quite high in Cyprus, rising significantly over the past few years. This followed the pattern seen throughout Europe during the peak of the energy crisis, though things have begun to ease. That being said, energy costs in Cyprus are still high by EU standards. This should be something you prepare for, should you decide to relocate.

3. Natural Hazards 

The risk of natural disasters such as earthquakes, flash floods, and wildfires is quite high in Cyprus. This is something UK expats may struggle to adapt to. Each year, the Geological Survey of Cyprus records about 500 tremors, although no major earthquakes have occurred in recent years.

4. Slow Pace of Life 

Cyprus’s island lifestyle is highly sought after by expats looking for a slow pace of life. But it also means that when you need something to get done, it could take a while. Whether you need to organise documents at a government agency or are waiting for the neighbourhood roadworks to be completed, be prepared to wait longer than you’re used to at home.

6. Low Urban Development

For all its appeal, Cyprus is still, primarily, a rural country. With the exception of a few port towns having medieval architecture, the buildings, for the most part, reflect a developing world. Likewise, there are cultural events in Limassol. But elsewhere, expats might find a lack of entertainment opportunities.