Cyprus offers sunshine for most of the year, widespread English, an EU passport-friendly legal system based on English common law and a tax regime designed to attract professionals and companies. A major tax reform took effect on 1 January 2026, raising the tax-free threshold and changing several rates.

Visas and residence

EU citizens can live and work freely and register their residence. For others, the Civil Registry and Migration Department handles:

  • Digital nomad visa: for remote workers employed by or providing services to companies outside Cyprus, with net income of at least €3,500 a month (more for family members). It is valid for one year and renewable.
  • Permanent residence by investment: fast-track permanent residence for buying new property worth at least €300,000 plus VAT, with proof of a secured annual income.
  • Work permits: through Cypriot employers, including a fast-track route for international companies.

How much does it cost to live in Cyprus?

Our Cyprus data puts an average one-bedroom at about $1,000 a month and a three-bedroom at about $1,700. Limassol, home to many international firms, is the most expensive city, with rents that have risen sharply; Larnaca, Paphos and Nicosia are cheaper. Groceries cost about $300 a month, and electricity bills rise in summer with air-conditioning. Public transport is limited, so most residents need a car; cars drive on the left.

How Cypriot tax works

Under the 2026 reform approved in December 2025, personal income tax bands are:

  • 0% up to €22,000
  • 20% up to €32,000
  • 25% up to €42,000
  • 30% up to €72,000
  • 35% above €72,000

New residents taking up employment in Cyprus with salaries above €55,000 can claim a 50% exemption on that employment income for up to 17 years, if they were not Cypriot tax residents for the previous 15 years. The non-domiciled regime exempts qualifying residents from Special Defence Contribution on dividends, interest and rent for up to 17 years. The reform also raised corporate tax from 12.5% to 15% and cut the defence contribution on dividends for domiciled residents to 5%.

Social insurance is 8.8% for employees, plus 2.65% for the national health system (GESY). VAT is 19%. Details are on the Tax Department website, and you can estimate tax with our tax calculator.

Healthcare

GESY, the General Healthcare System launched in 2019, gives contributors access to GPs, specialists and hospitals with small co-payments. Private hospitals are good, and many expats also hold private insurance.

Daily life

Life in Cyprus is relaxed and outdoor, with beaches, mountain villages in the Troodos and a strong café culture. English is spoken almost everywhere, a legacy of British rule until 1960. The island has been divided since 1974: the north is administered separately, and crossing points are open. Summers are very hot, often above 35°C inland.

Is Cyprus a good place to move?

Cyprus suits professionals, entrepreneurs, remote workers and retirees who want sun, English and favourable tax within the EU. Weighing it against Malta? Read our Malta vs Cyprus comparison.