Post-Brexit Debate and HNW Individuals and Companies Relocation
In this article, we discuss the effects of the withdrawal agreement towards UK nationals, how and why Cyprus is making sure that UK nationals and their families can still relocate in Cyprus Post-Brexit. Additionally, we will discuss why UK nationals as well as other Non-EU nationals consider Cyprus as a gateway to EU. Last but foremost, we will talk about how we can help you with relocating in this beautiful island, either as a permanent resident, an entrepreneur or someone who is looking for a safe place to live with their family.
How UK nationals are looking to relocate in Cyprus
The Withdrawal agreement
As we all know the withdrawal agreement has been implemented with the withdrawal of UK from the EU and is legally binding for all EU member states. The year 2020 is coming to an end, throughout this year UK nationals have been going through a transitional period, this is the period where Free movement of UK nationals under the current EU Law has been taking action. During this transitional period, which started on the 1st of February and ends on the 31st of December 2020, UK nationals could keep their rights based on EU Law. However, with the implementation of the withdrawal agreement, as of the 1st of January 2021, any residency applications will be accepted but under the new system which is still in progress.
Cyprus has taken the decision that UK nationals including their family members who have residence rights under the withdrawal agreement but have not applied for residence during the transitional period, will still be eligible to do it after the new year 2021, provided that they have submitted their residency documents prior the end of the transitional period. Adding to this, they will not be obligated to replace their pre-existing residency documents in order to obtain any new residence documents.
The Cyprus government is greatly appreciative of UK citizens as they have been doubtlessly contributing to the Cypriot society for a very long time. Taking this into consideration, and the fact that many UK citizens have been residing in Cyprus as EU citizens, the government has made sure that their rights are safeguarded. The government is not only protecting UK nationals but also their family members even if they are third country nationals.
To be more specific, there are three provisions in which UK nationals will be eligible to permanently reside in Cyprus, subject to the Withdrawal agreement. Firstly, UK nationals and their family members, who have been residing in Cyprus continuously for 5 years are eligible to apply for permanent residency. Secondly, UK nationals and their family members who have already exercised their free movement rights in Cyprus before the 1st of January 2021 will still be able to live in Cyprus without any new restrictions and with the same benefits they received before the withdrawal agreement, those benefits could be access to work, study or use public services. Thirdly, individuals who have not been residing for 5 years continuously will be considered as temporary residents, they will need to reach the 5-year threshold in order to apply for permanent residence. Lastly, UK nationals who want to move to Cyprus after the end of the transition period and have no rights under the scope of the Withdrawal Agreement will have to follow Cyprus immigration rules for third country nationals. Regarding the above, the rights for UK nationals who are residents by the end of the transition period will be protected as long as they remain residents in Cyprus.
Why considering Cyprus as an ideal gateway to the EU?
One of the many reasons that UK nationals consider to relocate in Cyprus, is retirement, as a Cypriot resident, who is receiving pension from abroad, you can choose one from the following two options to be taxed on the pension income.
One of the options being to be taxed under the progressive income tax rate with the first €19.500 of your net taxable income being tax free. The second option is, for the first €3.420 of your foreign pension to be taxed free and the remaining balance to be taxed at a flat rate of 5%. Adding to this, any lump sum received as a retirement gratuity is exempt from tax.
Another reason that UK nationals choose to relocate to Cyprus is healthcare. Recently Cyprus has implemented a new scheme, called Gesy. Gesy stands for The National Health Insurance System (NHIS), it is a universal system financed by contributions, by registering you are entitled to state healthcare for free.
Other than the two main reasons mentioned above, there are numerous other reasons that people consider Cyprus as a getaway to EU. Those include a competitive corporate income tax rate of 12.5%, one of the lowest corporate tax rates in the EU. Its geographical location, which is considered the best crossroad between Europe, Asia and Africa. Many people choose it for its stable economy, its low cost of living and high quality of life and healthcare. If you have children, you can also have access to reputable private and public schools.
Furthermore, Cyprus is an ideal place for visitors as it is easily accessible via a Schengen visa, this way they can stay in the island for a period of which the Schengen visa is valid. Another reason that people choose Cyprus is its warm climate, crystal clear waters and its natural beauty.
How we can assist you with relocating to Cyprus
Our services cover the following professional areas,
Corporate and Trust
Tax and Legal
Global Migration Services
We know that every client has different requirements; therefore, we treat each one differently based on their needs. There are various routes to choose from in order to relocate to Cyprus.
One of routes is via Tax residency with either the 60 days or the 183 days rule. Under the 60-day rule, you have to remain in Cyprus for at least 60 days during a tax year but do not reside in any other single state for a period exceeding 183 days and also not be a tax resident in any other state. You will have to carry out business activities and/or work in Cyprus and/or be a director in a Cyprus tax resident company as well as maintain a permanent residence in Cyprus (either owned or rented).
The Permanent Residency route is another option for those late decision makers, who were looking to leave before Brexit, but did not decide on time; you can qualify and permanently reside in Cyprus via either the Fast Track or Category F Route, these are granted within 2 months and 6-8 months respectively. Under the Fast Track route, you will be required to purchase a new property with a minimum market value of €300.000, whereas under Category F you will have to purchase a new or used property with an approximate market value of €150.000.
Of course, it is not as simple as that, there are more requirements such as proof of your annual income, or depositing a specific amount of money in your bank; if you would like to know more please contact us via the contact form below.
Obtaining a permanent residence in Cyprus
Through our network we offer A-Z services for all the above mentioned applications as well as assisting you choosing your dream home. We know that every client has different budgets and requirements therefore our aim is to find the most suitable options to your needs. We can provide you with as many options are you may require, from coastal cities to capital cities, from furnished to unfurnished and from apartments to houses or villas. Adding to this, we also offer rental and Property Management Services together with any other after sales support that you may need.
If you are interested in relocating to this beautiful island, please contact us below so we can discuss about the best options for your needs.