Emigrating to Cyprus – between myths, reality and real help
Emigrating to Cyprus – between myths, reality and real help
More and more Germans are moving to Cyprus in search of sun, freedom and better economic conditions.
But anyone who believes that emigrating only means packing your suitcase will quickly be taught better. Especially when it comes to topics such as company formation, residence law, tax law, family, insurance or everyday life, you need reliable information – and above all the right local partners.
But anyone who believes that emigrating only means packing your suitcase will quickly be taught better. Especially when it comes to topics such as company formation, residence law, tax law, family, insurance or everyday life, you need reliable information – and above all the right local partners.
Beware of myths and rumors
stories circulate on social networks: alleged rip-offs by lawyers or consultants, opaque costs, and the feeling of paying more than others as a German. But is that really true?
As someone who emigrated to Cyprus with his family of five four years ago, I can say: No – but also: Yes and no. These rumors are often exaggerated or based on individual cases. Of course, there are dubious providers – as everywhere else in the world. But there are also many honest, reliable lawyers and tax advisors with fixed prices.
The new "national sport": From stranded to emigrant coach
A real problem: More and more failed emigrants suddenly discover their "calling" as an emigrant coach, tax professional or Cyprus insider after their own failure. Mostly without training, qualifications or licenses. In doing so, they give expensive advice, spread half-knowledge and often do more damage than they help. New emigrants in particular fall into dangerous dependencies and make fatal decisions.
The truth about company formation in Cyprus
Cyprus offers many advantages for entrepreneurs: The Cyprus Limited is an EU-compliant, English-language legal form with low tax rates (currently approx. 12.5% corporate tax). Anyone who deals with the requirements knows: There are clear legal structures that must be adhered to, but also a lot of unnecessary myths.
A common misconception is, for example, that a Cypriot secretary or even a local managing director is absolutely necessary. That's not true. These positions can be filled voluntarily, but are not a legal requirement. Anyone who catches the wrong advisors here often pays thousands of euros per year unnecessarily - and has additional effort to remove such constellations from the commercial register later.
The Great Emigration Guide Cyprus: Company Formation, Taxes, Everyday Life and More
and more Germans are moving to Cyprus – and for good reasons: 300 days of sunshine, EU membership, low corporate taxes, Mediterranean quality of life and a relatively simple immigration process. But the path to a new life on the Mediterranean needs to be well planned. In this comprehensive guide, we cover all relevant topics – based on sound information and the experience of vetted partners.
1. Moving abroad – the first step
If you are emigrating from Germany, you should not simply pack your bags. A structured plan is necessary: official deregistration at the Population Registration Office, orderly change of residence, organization of bank accounts and mail forwarding. It is also important to submit the German tax return for the current year and to take into account possible additional payments or refunds.
When
moving out of Germany, entrepreneurs and GmbH shareholders must observe the so-called exit taxation (§ 6 AStG). This means that anyone who holds shares in corporations must pay tax on the fictitious capital gain – even without an actual sale. Even after the move, tax returns in Germany are required, depending on the circumstances. Good tax advice before moving is absolutely essential.
3. How much does it cost to emigrate?
The costs of starting in Cyprus vary greatly: flight, accommodation, rental deposit, vehicle purchase/import, company formation, lawyers' fees, insurance, etc. As a rule of thumb, you should expect to pay 4,000–6,000 euros for individuals, and 7,000–15,000 euros for families, depending on their standard of living.
4. Living in Cyprus as a pensioner
Cyprus is a popular destination for retirees. The German pension will continue to be paid if you have officially deregistered in Germany. The cost of living is moderate, the health system is acceptable to good, and the climate is a dream for many. Important: The yellow slip must also be applied for by pensioners, as well as access to the public health system (GESY).
5. The Yellow Slip – indispensable for EU citizens
The "Yellow Slip" is the residence document for EU citizens. Without him, no legal residence is possible. It is a prerequisite for:
- Opening an account
- Registration with GESY Driving
- licence conversion
- Real estate rental/purchase
Required: passport, rental contract, proof of health insurance, proof of income and, if applicable, birth/marriage certificates.
6. Residency in Cyprus: Rent or Buy?
In the early days, renting is the better choice. Property prices vary from region to region – cheaper inland, more expensive in tourist coastal resorts. If you want to buy later, you should familiarize yourself with the legal peculiarities of Cypriot real estate law.
<a href="https://www.mfcyprus.de/de/index_0__1_sp1_1.html">>>>ADVERTISEMENT
<<<Rent/buy real estate in Cyprus
7. Work & Self-employment
If you want to work or start a business in Cyprus as an EU citizen, you do not have to overcome any special hurdles. Registration with the employment office, the social insurance agency and the tax office is required. Cyprus Limited is particularly popular because it is easy to set up, is under EU law and is one of the most attractive locations in Europe with only 12.5% corporate income tax.
8. Cyprus Limited: Structure, Benefits and Risks
Cyprus Limited is comparable to the German GmbH. It can be founded and run entirely by EU foreigners. Advantages:
- 12.5% corporate income tax
- no business tax
- full EU compatibility
- English commercial law (simple and efficient)
Incorporation is done with:
- Memorandum & Articles)
- A local Registered Office
- at least one director (can be the founder himself)
There is no obligation to appoint a Cypriot managing director, even if this is often claimed by dubious consultants.
9. Offshore and holding structures
Cyprus is also an excellent holding location or for international business models. However, the international tax structure should always be coordinated with an experienced tax advisor in order to correctly comply with double taxation, reporting requirements (e.g. CRS) and substance requirements. Caution is advised in the case of purely offshore constructions – stricter requirements now apply here due to EU and OECD requirements.
10. Anonymous company formation: What works, what doesn't?
Cyprus does not allow completely anonymous companies, as used to be the case in classic offshore centers. The beneficial owners (UBOs) must be known to the bank and, if applicable, to the commercial register. Some discretion can be achieved through fiduciary intermediaries, but complete anonymity is not realistic for compliance reasons.
Families
who emigrate to Cyprus with children are faced with the choice between government schools (Greek) and international private schools (English). The latter offer British or IB degrees and cost €4,000-10,000 per child per year, depending on the school. Everyday life is child-friendly, safe and strongly community-oriented.
With
GESY, Cyprus has a state health system that is based on EU standards. The contribution rate is 2.65% of income. If you are self-employed or have no income in Cyprus, you should choose private health insurance. The care in private clinics is excellent, the emergency care in public hospitals is solid.
Entry & first weeks
For EU citizens, entry is uncomplicated. In the first few weeks, the following points should be done:
- Secure accommodation
- Apply for yellow slip
- Open bank account SIM
- card/mobile phone contract
- if necessary Buy/insure car
- Apply for tax ID
A structured schedule avoids chaos and setbacks.
14. Assess the cost of living realistically
is cheaper than Germany – but not cheap. Regional differences and one's own lifestyle make the difference. A couple can live well on €1,800–2,400/month, a family with 2 children should calculate €2,800–3,500/month.
Conclusion: Those who are prepared will be rewarded
Cyprus is a paradise within the EU – and a great opportunity for all those who emigrate consciously, in a structured manner and with realistic expectations. With the right preparation, reliable partners and a little openness to a new culture, the dream of living in the south can very quickly become reality.
If you would like further information on emigration or the establishment of a Cyprus Limited, you have the option of booking a free initial consultation with one of our experienced partner lawyers or tax advisors. For emigrants who feel more comfortable being accompanied by a reputable agency or a personal advisor, certified partner companies are also available.
All our partners have been carefully selected, have excellent references and have been rated with a customer satisfaction rate of 100%.
Stay realistic & prepare well
Cyprus - is a country full of opportunities, especially for entrepreneurs.
- Don't believe everything that is written in forums.
- A lawyer and tax advisor are mandatory – a good advisor is optional, but often helpful.
Those who are well prepared and listen to recommendations can emigrate safely, legally and successfully in Cyprus.
Author: Tom Weyerman
Sources: Goverment.cy / Lawyer
Sources: Goverment.cy / Lawyer
