Despite the obvious triumph of being admitted into the European Union in 2004, Cyprus has suffered more than its fair share of political setbacks. When Britain granted the island independence in 1960, Greek Cypriots (80%) and Turkish Cypriots (20%) lived side by side in peace – despite their cultural differences. Sadly, everything changed rapidly and, by 1963, as the newly liberated island tried to establish a constitution, civil unrest and inter-communal violence broke out. Turkish Cypriots withdrew from all public institutions leading to effective political meltdown and necessitating the presence of UN peacekeeping forces.

Politics

The problems culminated in the summer of 1974 when Turkish troops invaded the North of the island. Massive population shifts followed as Greek Cypriots fled south to escape the invasion and Turkish Cypriots fled north to seek protection.

The Turkish occupation of North Cyprus remains to this day, with 30,000 troops stationed there. A ceasefire buffer zone patrolled by the UN (known as ‘The Green Line’) separates the two territories and divides the capital city, Nicosia.

Talks have been held to try and reconcile the two communities. The latest dialogue ended in failure in February 2004 and, for now, Greek and Turkish Cypriots are divided by a barrier, and those that fled in 1974 are unable to return to their homes.

The Turkish Cypriot territory in the North of Cyprus covers a third of the island. It is not recognised as an official entity by any country other than Turkey and suffers economically as it cannot secure foreign investment. GDP per capita is around 30% of that of the south of the island.

The Greek Cypriot territory in the south of Cyprus is officially known as the Republic of Cyprus. For the purposes of this guide, ‘Cyprus’ will refer exclusively to the Greek Cypriot territory.

Cyprus is politically stable and is run as a parliamentary democracy. It also enjoys one of the most buoyant economies in the Mediterranean, thanks to its huge tourist appeal. This successful economic performance led to it being classified as a high income country by the World Bank, with GDP per capita estimated at €17,012 (£11,556) – around 80% of the EU average. Unemployment is very low, below the EU average. This figure has not exceeded 5% in many years.

Crime

Crime rates are very low in Cyprus, typically around one sixth of the average of those recorded throughout the rest of Europe.

Religion

Around 78% of the population is Greek Orthodox. The second largest religion in Cyprus is Islam.

Currency

The Cypriot pound is divided into 100 cents. Coins range in value from one to 50 cents, and bank notes are in denominations of £1, £5, £10 and £20. The exchange rate in relation to other currencies is issued daily by the central bank.

Language

Cyprus is Greek-speaking. However, it was once a British colony and as a result around 80% of the population speak English. Helpfully, all street signs are written in both Greek and English.

Food and wine

Gastronomy is very important to Cypriot culture. Though a full range of international cuisine is available on the island, it is the traditional, local dishes that come most highly recommended.

Probably most famous is the meze (or mezedes/ mezedakia), which is a seemingly endless selection of appetisers and savouries served on small dishes. Typical examples include halloumi (a salty cheese), and koupepia (stuffed vine leaves).

There is also a wide choice of  main courses, with dishes of fresh seafood, game and red meat all available. Moussaka (minced lamb or beef and herbs covered with layers of sliced potatoes, aubergine and courgette) and souflakia or kebab (skewered pork or lamb roasted over a charcoal fire) are also popular.

Desserts are made with Cyprus’s famous honey, often in combination with nuts, almonds or preserved fruit.Those with a very sweet tooth might like to try knocking back a glass of the rich, dessert wine, commandaria, which is the oldest known wine in the world.

Cost of living

The relatively low cost of living in Cyprus is among its main attractions. Recent statistics suggest that Cyprus is one of Europe’s cheapest countries, yet offers a fairly high standard of living.

Visas and work permits

Citizens of many countries, including European Union member states, do not need a visa to visit Cyprus for stays of up to 90 days. Nationals of other countries should contact the Cypriot Embassy in their country of residence to obtain a visa before travelling, as visas are not available at the border.

For longer stays a residence permit will be required. For EU citizens this is a formality.You simply need to complete an application form at your local immigration office to automatically receive a residence permit. For non-EU citizens the procedure is straightforward, too. Applicants must complete a form and hand it in at the immigration office in the area of residence, along with:

• Confirmation of arrangements of your accommodation in Cyprus.
• Proof of sufficient income.
• Valid passport
• Three passport photos

You need a work permit to work in Cyprus. Again, EU citizens can obtain one as a routine procedure by acquiring approval from the Ministry of Labour. Non-EU citizens need to contact the Migration Officer in Nicosia to apply for a work permit. This should be done before entering Cyprus. Your employer can also make the application for you.

Insurance

Insurance costs vary significantly depending on the policy and company you choose. The procedure is very similar to that of the UK. If you opt for a local company make sure all documentation is in English.

Legally, you need to insure your house and its contents – full cover will cost around C£120 (£144) per annum. Similarly, if you own and drive a car you are legally obliged to take out basic car insurance. A fully comprehensive policy will cost around C£140 (£168) per annum.

Driving licence

Your UK driving licence is valid in Cyprus. If you wish to obtain a licence while you are there, you will need to apply to the Cyprus Department of Vehicles.

Healthcare

Cyprus offers a high standard of healthcare: doctors, dentists and specialists are available across the island and their fees are generally low.

Emergency healthcare is provided free of charge, although you may have to pay for any subsequent hospitalisation that’s required.Again, the fees are comparatively low.

The state offers free or subsidised healthcare (according to your financial situation) to anyone contributing to the social security system.

Alternatively, private healthcare insurance is relatively cheap and can be arranged through an insurance company or through your bank.

Utilities

The Cyprus Electricity Authority (EAC) supplies electricity, and you will need to call them in order to set up an account. Three-pin plugs are standard and charges are reasonable.

There is no central gas supply in Cyprus, though bottles can be purchased for around C£3 (£3.60) for a 10kg bottle.

Water is scarce in Cyprus and consumers are asked to limit their use as far as possible. Tap water is drinkable and charges are based on consumption. Bills are sent once every three months.

Education

Schooling is free and compulsory for children aged between five and 16 years old.

What’s more, every village that contains more than 15 school-age children will have a school.

Education can start at the age of three at state pre-schools. At the age of six, children must attend primary school. From 12 to 18 years old, they go to secondary school, though they can leave at 16.

If you want your child to attend state school they will need a knowledge of the Greek language. Private alternatives to state pre-school, primary and secondary school are also available.They are regulated by the Ministry of Education and Culture but are usually run by religious groups or foreign bodies, who raise money by charging fees. In most large cities you will also find international schools where your child can receive an education based on the UK curriculum and will be taught in English. This is often the best option for older children who may have difficulty adapting to a new language.

Some 63% of all school leavers in Cyprus attend university. Higher education is provided by both public and private institutions and, though it is free for Cypriots, overseas students may have to pay. For more information, contact your embassy.

Banks

Another legacy of Britain’s influence in Cyprus is the fact that the banking system functions almost exactly as it does in the UK. In fact, many British high street banks have branches on the island.

Branches are numerous and equipped with modern technology. They usually open between 8.30am and 12.30pm from Monday to Friday. Most major credit cards are widely used and accepted.

Non-Cypriot citizens may open foreign currency and local deposit accounts without any problems. To do so simply phone or pop into a local branch, as in the UK. Alternatively, you could ask your own bank if they have branches on the island.

Tax

Cyprus offers tempting tax incentives for foreigners. Double taxation treaties exist with other EU member states, China, South Africa and the USA (among others), meaning that citizens will not be taxed twice on any of their worldwide income.

Income tax rates in Cyprus are low and tax is normally deducted at source. The rates work on a scale of between 0% and 30% as follows:

INCOME TAX RATE

Up to C£10,000 (£12,000) 0%
C£10,001 to C£15,000 (£18,000) 20%
C£15,001 to C£20,000 (£24,000) 25%
Over C£20,000 30%

If you receive your pension in Cyprus, a flat rate of just 5% is taxed (the first C£2,000 is free), even if it is a UK Government Service pension.

Worldwide bank interest and worldwide dividends are also taxable at between 10% and 15%.This is known as Defence Contribution. There is no wealth, inheritance or gift tax in Cyprus.

Renovations

Getting renovation work done in Cyprus is very easy and labour and materials are inexpensive. There are plenty of specialised builders and contractors – ask your agent for recommendations or look in the telephone listings. Renovating older village properties is particularly popular at the moment, due to the growth of agricultural tourism.