The long and short of it

Cyprus is situated at the eastern end of the Mediterranean basin. Third largest of all the Mediterranean Islands, ranking in size after Sicily and Sardinia, its area is 9,251 square kilometres, stretching 240 km from west to east and 96 km from north to south. The island’s population is approximately 700,000.

Its geographic location at the crossroads of three continents – Europe, Africa and Asia and at the meeting point of great civilisations, has been one of the factors influencing the course of the island’s history throughout the centuries. For thousands of years our location has not changed, neither has our skill in bridging continents, people and cultures.

Past and present

Cyprus’s intriguing history, entwined with mythology, has created a country with character and traditions all of its own. It is also an island of great scenic beauty. A startling variety of landscapes veer from sandy beaches to charming, unspoilt villages nestling in vineclad foothills; from fertile citrus and olive groves to lofty forests of pine and cedar.

Temples bequeathed by the Romans, historic churches from the Byzantine era and castles from medieval times are among the wealth of fascinating remains that live in quiet harmony with cosmopolitan hotels and modern shops. As in ancient times, Cyprus continues to welcome visitors who choose to live on the island.

The island’s history is one of the oldest recorded in the world, running back to the 7th millennium BC. The settlement in Cyprus of Mycenaean Greeks in the 12th century BC and later by Achaean Greeks established the Greek character of the island.

Communications

Led by Cyprus Airways, the national carrier, the island is served by approximately 30 major airlines, linking it with the world through its international airports at Larnaca and Paphos.

Driving is on the left in Cyprus and distances between towns are relatively short, covered by a good network of motorway standard modern roads. Cyprus telecommunications are among the best in the world – an important factor in establishing the island as an offshore business centre.
Today, Cyprus has direct telephone links with nearly all the countries of the world. With some 3,000 ships on its registry, it has the fifth largest merchant fleet in the world. In the year 2000, over 1200 international business companies were operating from fully-fledged offices in Cyprus. Over the last few years, the growth of a transit trade sector and the increased use of Cyprus as an offshore base has been of
particular importance.

Language
Greek is the population’s mother tongue, however, English is widely spoken and understood almost everywhere. Knowledge of French, Russian and German is increasing with the island’s tourist trade

Climate

With one of the healthiest climates anywhere on the globe, Cyprus registers (with approximately 340 days of sunshine per year) as the sunniest island in the Mediterranean, with the warmest sea temperature, ranging from 16? C in January to 32? C in August.

Peace of Mind

Cyprus enjoys a remarkably low crime rate (1/6 of the European average) which is another reason for its popularity with foreign buyers for whom security has become a key element in the property world. Visitors are invariably surprised and reassured by this relaxed aspect of life on the island, where crime is virtually unheard of, and theft is not commonplace.

Government System in Cyprus

Cyprus is an independent sovereign republic with a presidential system of government. Its fully democratic, European style system retains the respect of individual rights and permits unlimited scope for private initiative. Cyprus is an associated member of the European Union.

Cyprus has entered into a Customs Union with the EU. The first phase of the agreement was implemented on 1st January 1998 with the abolition of all customs duties and quantitative restrictions on trade of industrial products between the EU and Cyprus. The second phase is expected to be completed by the year 2003 or 2004, when Cyprus becomes a full member state of the EU.

Legal system

The legal system in Cyprus is based on the British legal system. The Land Registry in Cyprus is probably the most advanced and reliable system in the world, and is also based on the British equivalent.

Purchasing property in Cyprus, therefore, is far more secure, with regard to title deeds, than it might be in other Mediterranean countries.

Banking standards

The banking system in Cyprus closely follows the British pattern. The banks have many convenient branches that are efficient, modern and well equipped with the latest technology.

Non-Cypriot citizens may open foreign currency and local deposit accounts without difficulty. Many international banks have branches throughout the island.

Major credit cards, such as those within the Visa and MasterCard networks, are widely used in Cyprus. Transactions and payments are simply made through your foreign deposit account.

Currency

The Cyprus currency system is based on the decimal system. One Cyprus Pound is divided into 100 cents. Coins range in value from one cent to 50 cents, and four bank notes are in circulation: £1, £5, £10 and £20.

Cost of living

The relatively low cost of living in Cyprus is an advantage which will appeal to the potential buyer. Thus the island offers a full but comparatively inexpensive lifestyle. Recent statistics pointed to Cyprus as one of the most inexpensive countries in Europe. The local markets flaunt a wealth of colourful fresh fruit and vegetables, meat and fish. Modern supermarkets are fully stocked with a large range of local and imported goods and produce.

Health care

The cost of medical treatment in government hospitals is very low. Those wishing to consult doctors privately will find a wide choice of competent doctors, specialists and surgeons practising on the island. The minimum charge for a private consultation is approximately CY£10.00.

The standard of medical treatment provided to citizens is high and continuously improving. Additionally, a number of companies offer medical insurance schemes that cover excellent and immediate medical care. Diverse schemes are tailored to individual needs and budgets, and can cover hospitalisation at the hospital or clinic of your choice, outpatient consultations and drugs, and even nursing at home.

Tax advantage

Non-Cypriot individuals residing in Cyprus pay income tax at a flat rate of 5%. This applies to the amounts remitted to Cyprus, from pensions or income from overseas investments. The first CY£2,000 per annum are tax exempt.

Double taxation treaties

Compared with other international financial centres, Cyprus offers a distinct benefit in the form of double taxation treaties. Agreements with an increasing number of countries eliminate the double taxation of income earned in any one of these countries. In practice, the tax levied by one country is credited against the tax levied in the taxpayer’s country of residence. Where different tax rates apply, the taxpayer will ultimately not pay more than the higher of the two rates of the respective countries. Such treaties, combined with very favourable tax rates for international business entities in Cyprus, open the door to significant tax planning opportunities. The fact that Cyprus is not considered a tax haven, but rather a country offering tempting tax incentives, expels the distrust that international tax havens often arouse.

To date, double taxation treaties exist between Cyprus and the following countries: Austria, Belarus, Canada, China, Czech Republic, Denmark, Egypt, France, Germany, Greece, Hungary, India, Ireland, Italy, Kuwait, Malta, Norway, Poland, Romania, Russia, Slovakia, Sweden, Syria, United Kingdom, South Africa, United States and Yugoslavia.

Residence permit

By law, a non-Cypriot who owns property in Cyprus is entitled to a residence permit, but is not required to hold a permanent residence permit. However, permanent residence is easy to obtain, once certain requirements are fulfilled. The applicant needs to submit an application and provide proof that he and his family are self-supporting. The following documents must accompany the application:

i. A copy of the sale/rental agreement
ii. Copies of pension/retirement income
iii. Any other document relevant to income
iv. Three photos and passport

The application for permanent residence may be submitted to the local immigration office in the area of residence.

Education

In addition to the public schools, private elementary and secondary schools for English, French, Russian and Italian speaking pupils are available. Tertiary education is provided at the University of Cyprus, as well as at a number of private English language colleges that offer accredited undergraduate courses in various fields, including business studies, marketing, economics, computer science, etc.