INDUCTION TO CYPRUS

POPULATION
TOWNS, CITIES & VILLAGES
DISTANCES
CLIMATE
CYPRUS CURRENCY
LANGUAGE
FOOD & CUISINE (& DRINK)
ILLEGAL SUBSTANCES
THE GOVERNMENT OF CYPRUS
EUROPEAN UNION
COST OF LIVING & QUALITY OF LIFE
DUTY FREE PRIVILEDGES FOR FOREIGN RESIDENTS
LOW TAXATION FOR FOREIGN RESIDENTS
RESIDENCE PERMIT, EMPLOYMENT PERMIT
BANKING
PETS
EXTREME NATURAL PHENOMENAS
USEFUL TELEPHONE NUMBERS
BUYING DUTY FREE/PAID MOTOR VEHICLES
UTILITIES & OTHER ONGOING COSTS
RATES
IMMOVABLE PROPERTY TAX
VARIOUS OTHER TAXES

Cyprus is the third largest island in the Mediterranean Sea. It covers an area of 9,250 sq. kms.

POPULATION

The population is around 800,000 - consisting mainly of Greek Cypriots, with other ethnic and religious minorities such as Maronites, Armenians, Latins, Turkish Cypriots, etc. Cyprus, being multinational and multi-ethnic, also has a large number of permanent or semi-permanent residents – mostly from the UK and mainland Europe.

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TOWNS, CITIES & VILLAGES

The capital city is Nicosia – located centrally inland. The major cities are Paphos, Limassol and Larnaca – all on the coast. Other popular towns/villages are Polis, Pissouri, Ayia Napa, Protaras, Paralimni, Zygi, Cape Kiti, Platres, Troodos, etc, which attract holidaymakers throughout the summer season Cyprus offers a wide range of natural attractions, alongside its tourist attractions: Sandy beaches, pine covered mountains, traditionally characteristic villages, ancient sites - as well as the classy hotels, the bars, night-clubs, tavernas and cafes – to match your every taste and need. . If you are the exploring type, scenic little villages can be discovered off the beaten track. As you drive along the winding roads in the Larnaca district, one such charming village is Lefkara, renowned for its intricate lace making – the ‘Lefkara Lace’.

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DISTANCES

You can’t go too far in a car – from one length of the island to the other, east to west, it may take you less than 180 minutes! To go to the beach from anywhere in the middle of the island, will take around 30-40 minutes. However, if you want to go round and round the island, for the time being it’s not possible… due to the 1974 Turkish Occupation in the northern one-third of the island!

Below are the distances in Kilometers between the major towns:

Nicosia – Larnaca – 45km
Nicosia – Limassol – 83km
Larnaca – Limassol – 66km
Limassol – Paphos – 68km
Larnaca – Ayia Napa – 39km

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Cyprus has a mild Mediterranean climate - short mild winters and long warm summers. Average daytime temperature is about 10-15 degrees centigrade in winter and 25-35 degrees centigrade in summer.

Ski lovers can take advantage of the snowfall on the Troodos mountains during the winter months (from around late December through to early March). Springtime can arrive as early as February as the first spring flowers start to bloom, and long, warm summery days divulge around late April or early May. Hot months are experienced from May through to end of September – during this period, just about everybody worships the sun, the sea, the sand and the sun-block cream! Particular care should be taken during the heat waves, which generally occur during July-August.

Extreme climatic conditions, severe seismic activity, or other natural phenomena (disasters) very rarely occur. Just in case, by sheer misfortune, you do experience such conditions, you want to be prepared. (See Extreme Natural Phenomenas and Emergency Numbers ).

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The islands currency is the Cyprus Pound (CY£) – divided into 100 cents. The notes are £1, £5, £10, £20, and coins 1c, 2c, 5c, 10c, 20c, and 50c.

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The mother language is Greek, with other official languages being Turkish and English. English is widely spoken, or at least understood, by more than 90% of the population. Road signs, shop signs, food and drink lists, etc are in both English and Greek.

Due to Cyprus being a popular destination for tourists, the existence of numerous off-shore businesses, the variety of cultures that simultaneously exist and intermingle on the island, alongside the human need to communicate, your ear will inadvertently pick up on many other languages such as Russian, German, Bulgarian, French, Arabic, Dutch, Armenian, Italian, Turkish, Swedish, etc, etc. (No fear, “Beer” is understood by all.) 

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Yes, there is food – and lots of it – from good, fresh, healthy food to the downright common-old-garden junk food!

Recent studies over healthy eating have shown that the Mediterranean diet is one of the healthiest in the world… Foods rich with veggies, pulses, beans, olive oil and herbs can do you a world of good!

In every town, you’ll find the obvious, well-located local tavernas and restaurants providing terrific traditional Cypriot meals, like the famous fish or meat meze, and around the corner, or veiled away, you can discover unassuming take-away shops that make fresh and healthy home-made food, just as grand (and at half price).

All sorts of restaurants and food outlets are abundantly scattered around every town, and all international cuisines are represented, such as Chinese, Japanese, Thai, Indian, French, Italian, Mexican, Lebanese, Armenian, Serbian, vegetarian – catering for every taste and fancy!

While on the subject of ‘food’, ‘drink’ cannot be omitted for obvious reasons. Straight to the point: do try a shot of ice-cold ‘zivania’ – but don’t overdo it! The bartender, or your waiter, will proudly explain what ‘zivania’ is and how it’s made. Its up to your taste to experiment with other local brews - such as beer, wine, brandy, etc, - but both the famous liqueur Filfar, and the desert wine Commandaria, are worth trying. Another refreshing, characteristically Cypriot summer cocktail is the Brandy Sour.

Never drive under the influence of alcohol – get a cab!

(Note: The above section was written under the influence of Brandy Sour…)

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How to make a great Brandy Sour

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All forms of illegal drugs (soft or hard) are stringently outlawed in Cyprus - including marijuana, ecstasy, etc.

According to Cyprus Law, possession of such drugs is a criminal offence and severe jail terms of up to 3-4 years, plus a hefty fine, isn’t unheard of for those possessing even small amounts!

Over the years, countless travelers/tourists have been caught unawares at the airports. Many visitors, being ignorant of these strict laws on drugs, upon their arrival to Cyprus with such substances in their pockets (even for their own use), have had their holiday plans and accommodation drastically altered by the Police!

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Cyprus is a democratic republic.
The current President of the Republic is Mr. Tassos Papadopoulos - since February 16th, 2003.
(Note: This section is currently under construction…)

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Cyprus is expected to fully join the EU in the year 2004. The islands accession was approved in December 2002.

(Note: This section is currently under construction…)

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The citizens and residents of Cyprus enjoy a high standard of living. Compared to Europe, the cost of living is relatively low. A couple can have a comfortable lifestyle on an income of merely CY£6000 - £8000 per year. The low crime rate renders Cyprus an ideal place to live and raise a family.

Due to its advanced services and technology infrastructure; a well developed off-shore and on-shore banking system; low taxation; a Legal System based on the British equivalent - combined with the prospects of joining the EU (plus nice weather and low crime) - constitutes Cyprus as an attractive destination, whether it be for business, pleasure, relocation or retirement.

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Foreign residents are allowed to buy motor vehicles and household appliances at duty free prices within the first year of residency in Cyprus. You don’t have to import these items, they can be purchased in Cyprus.

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Foreign residents are taxed on a flat 5% per annum on pension and investment income brought to Cyprus. Exemptions totaling £4000 per person, or £8000 per married couple, apply in special circumstances. In practice, often only around 2-3% is the total tax burden on foreign residents.

Double taxation avoidance treaties exist in Cyprus with many countries such as: Armenia, Austria, Belgium, Bulgaria, Canada, China, CIS (ex-USSR), Czech Republic, Denmark, Egypt, Germany, Finland, France, Greece, Hungary, India, Ireland, Italy, Japan, Kuwait, Malta, Norway, Poland, Romania, Russia, Singapore, Slovakia, South Africa, Sweden, Syria, Thailand, Ukraine, United Kingdom, United States, Yugoslavia (Serbia and Montenegro).

It’s important to consider this benefit factor because, if you receive pensions and investment income in Cyprus from any of these countries, it will only be taxed at a flat 5% rate in Cyprus. This treaty includes both public and private sector pensions. Furthermore, the assets of foreign residents are taxed only on a remittance basis – meaning that you can keep your assets growing in an offshore bank, tax free, and only bringing into Cyprus what you will need.

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RESIDENCE PERMIT, EMPLOYMENT PERMIT

When Cyprus becomes a EU member in 2004, any EU national will be free to live and work in Cyprus.

For the time being, if you wish to retire in Cyprus, by simply providing documentary evidence that you have access to a secure annual income, such as a pension, dividends from investments, etc, is sufficient to obtain a residence permit. An annual income should at least be CY£3,800 per person, and £1,800 per dependant.

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The Cyprus banking system is based on the British equivalent and is regulated by the Central Bank of Cyprus.

Major local banks are: the (Cyprus) Popular Bank, the Bank of Cyprus, Hellenic Bank, Alpha Bank, Universal Savings Bank. Many international Banks are also represented in Cyprus.

An imperative to living and working in Cyprus is to open a Local Disbursement Account (LDC) at a local Bank. This account serves to provide for your living expenses on the island. Local currency (Cyprus Pounds) cannot be deposited in an LDC account. LDC accounts are only for cash withdrawals for living expenses, etc, but it cannot be used to purchase a property or a duty free vehicle. For this purpose, you require an External Account, which trades in any currency. With this External Account, you can purchase a property, duty free vehicle, etc, and transfer money to the LDC for your living expenses.

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You can bring your pets with you to Cyprus provided that they have had all their vaccinations, checks, etc. The good news is that you can quarantine your pets in the comfort of your own home (for 6 months) instead of in kennels.

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EXTREME NATURAL PHENOMENAS

EARTHQUAKES
Well, we all know the Earth is a living planet – moving, growing, just like us – and it’s normal for Earth to show constant insignificant seismic activity that’s detected on the Richter scale, which we cannot feel, however, in the event of an earthquake which we can feel, the last thing to do is panic. If you happen to experience an earthquake in Cyprus, most of the time it’ll be around 4 degrees on the Richter scale. It has been known to go above that during a powerful shake once every so often. In any case, earthquake minor or major, stay calm, move away from falling items (from shelves for example), don’t use the stairs or the elevator, keep away from glass doors, windows, cabinets, etc, never step onto a balcony, the first chance you have, switch off the main electrical power, and the gas bottles in the cooker, heater, etc. Establish which area of your house has the strongest beams structure – could be the corridor, bathroom, etc – and stay there until the earthquake subsides. Needless to mention, the construction standards of Cyprus are extremely high regarding earthquake safety.

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STORMS
Stormy weather to a certain degree is quiet natural, accompanied by thunder and lightning, etc. In severe cases where gale force winds are broadcast, trees and other tall standing electrical poles, etc, may collapse outdoors, therefore, simply stay indoors. If you come across fallen electrical poles, never touch the cables! If you’re driving during an electric storm, you’re pretty safe in the car – but don’t park your car (or stand) under a lone tree in the middle of a field… If you’re in the countryside where the landscape is mostly flat, make sure you’re not holding anything long and metallic! If you’re swimming, slowly swim to the shore. The rest is common sense

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HEAT WAVES
Heat waves occur only a couple of times a year, between July and August, where the temperature passes way over 45 degrees centigrade and usually lasts up to 3-4 days at a time. If you are at a susceptible age, and great care is not taken during these few days, the heat could be fatal. (Children and the elderly should be particularly careful.) The meteorological department generally gives advanced warning of an impending heat wave and broadcasts are made advising people to wear light colored clothes (black and dark shades amplify heat), drink lots of fluids (except alcohol, which dehydrates the body), stay indoors or in the shade, eat light food (fruits and vegetables), keep physical activity low, don’t exercise or do any strenuous activities, take frequent showers, wear a hat, etc, etc… Basically, everyone tries to keep cool until the heat wave blows over!

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Airports
Larnaca 24 643000
Paphos 26 422833

Telephone Information 192

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BUYING DUTY FREE/PAID MOTOR VEHICLES

For purchasing a vehicle in Cyprus, Access Estates recommends Mr. Anthony Costi, an independent professional buyers advocate – expert in dealing with duty paid, duty free, new or second hand vehicles - dealers and private sellers alike - and striking the best deals on behalf of his customers. Saving the car buyer unnecessary stress, confusion, running around, time and, most of all, money, whether you’re doing the unpacking or the sunbathing, Anthony does the groundwork and negotiating in order to get you the best price and terms on the car(s) you like to buy. He also advises you on cars that would suit your needs best if you’re at a loss - always putting safety and reliability factors first.

How it works: Before taking you around to various dealers/sellers, he does the searching, comparing, testing, checking, negotiating – and the occasional desk-banging – for you on the price, terms, guarantee, etc, and guides you through together with the seller in arranging the paperwork, registration, guarantee, etc, efficiently and promptly. Moreover, in case a defect is discovered on the car after purchasing it, and will be necessary to either have it repaired, returned or exchanged, he makes sure that your interests and rights are protected. Therefore, the couple of occasions Anthony takes you out to view cars, all you do is test drive, get briefed over the car particulars, and upon deciding, you sign.

For more information, advice and a consultation free of charge, email Mr.Anthony Costi at ac-wheels@accessestates.com .

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The Cyprus Electricity Authority (EAC) bill arrives at your mailbox every 2 months but your meter is read every 4 months. The bill is averaged according to your consumption habits, then, when the meter is read, it is adjusted to match the actual reading. This averaging/adjusting system comes with its surprises… You may find that, for one bill, it seems excessive compared to the electricity used, and suddenly, with your next bill, the EAC actually owes you money! Worry not, they’ll adjust it of course - by deducting what they owe you from what you owe them on the next bill!

Electricity in Cyprus is cheap compared to Europe and especially compared to the UK. Depending upon usage, your bill may be anything from £10-£50 every 2 months.

The electricity is 240 volts AC, sockets and fittings are similar to that of the UK.

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Water bills arrive quarterly. The amount you pay depends on usage, normally it is £6-£15 quarterly for normal household usage. The water is supplied by the Water Authorities to every house and every populated area anywhere in Cyprus through pipes laid deep underground. All you need to know is how to turn the tap “ON and then “OFF”, and where to pay the water bill.

For almost a decade, Cyprus suffered from water shortages due to low rainfall. Water supply was rationed daily by order of the Authorities and reckless water wastage was punishable by a fine. As such, we learned not to take water for granted, and we don’t leave taps running unnecessarily. Even today economy measures are taken in many ways – like when brushing teeth, the tap is “OFF”. (Desalination plants have now been set up to supply water…just in case the rain fails to fall.)

In Cyprus homes, potable water runs through the main tap which has a single knob on your kitchen sink. The tap with two mixer knobs (hot-cold) is from your water storage tank and is not considered potable.

Delicious mountain spring water can also be filled into portable tanks from roadside water dispensing machines for only 20c-50c – these machines are located in every neighborhood.

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Gas is not available through mains supply as in the UK. Gas in bottles and cylinders can be bought, delivered and refilled at almost every grocer, supermarket and such outlets. Initially, you pay a deposit of around £10 per cylinder, and henceforth, when it runs out, its around £3,00 per cylinder. To obtain a full gas cylinder, you need to return the empty one to the grocer or supermarket. Most households have 2-3 cylinders: one for the cooker, one or two for heaters, and a spare. Depending on usage, a gas cylinder may last 5-8 months in a cooker and money spent on gas can be only £15-25 per year!

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All standard phone lines are available island-wide, and ISDN in most areas. CYTA (Cyprus Telecommunications Authority) is the main telecommunications authority (until certain sectors are privatized) providing almost every kind of national and international telecommunication networks. Call charges are very cheap compared to Europe, UK, etc. Phone bills are monthly - and you have a month to pay the bill. If the total amount due is under £25 for a given month, you can postpone payment until the next bill, without worrying about being temporarily disconnected from the service.

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Rubbish is collected 2-4 times a week in highly populated areas, and 1-2 times a week in suburban or less populated areas. Detached houses tend to have their own rubbish bin located near the road for easy collection. Apartment blocks have a communal rubbish bin area, and densely populated, commercial areas have big yellow or green wheely bins on the roadside for dropping rubbish in.

Unfortunately, proper recycling methods have not been adopted by Cyprus yet, but some areas have recycling bins for cans. Empty glass bottles of local beer or wine may be returned to grocers or supermarkets for recycling or refilling.

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This applies mostly to apartment blocks, office blocks, certain housing complexes, etc and costs vary from development to development. It’s intended for the general running costs and maintenance of the common areas: elevator, electricity, parking, stairwell, pool, gardens, etc, and can be around £10-20 per month, it can fluctuate depending on the circumstances. The amount you pay is based on the size of your apartment or unit. Common expenses are payable over fixed periods throughout the year.

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The Rates or Council Tax is based on the declared value of the property. It could be anything from £25-180 per year, depending on size and value of your property. This tax is for paying the refuse collection, sewage, street lighting, etc. The bill comes to your address around September-October. Central Sewage costs around £85 per year in areas where it is available.

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Based upon the value of the property, the registered owner is liable to pay this annual Immovable Property Tax. The amount you pay is broken down as follows:

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Estate Duty has been abolished since 1/1/2000.

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 Capital Gains Tax is set at 20%. Upon the sale of an immovable property, you are levied at a 20% rate on the gains. There’s a once only exemption of £10,000 for an individual. However, exemptions and allowances are generously given for foreign owned property that is sold. The gain also takes into account inflation, the actual appreciation, and net capital gains up to Cy£50,000 earned from the sale of a family residence is tax exempt if before disposal the owner has lived in it for 5 years. The tax is payable within 1 month after disposal – 9% interest is charged on late payments.

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FEEDBACK - Although we try as much as humanly possible to be correct and concise with the information on the website, however some errors might still occur. If you discover any such errors, please feel free to notify us so we can verify or correct it. Any feedback is welcome and appreciated to help best serve you.

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This website is regularly updated. It is advisable to visit O.G.ESTATES   regularly to stay ahead with any new information, properties, developments and prices, etc.