Working in Cyprus under Category F Permit

Hi

We have been looking to eventually retire abroad, but are not quite at the right age yet (both early 50s)

However we wanted to know more about Cyprus and went to “A Place In The Sun - Live”

We met several companies and one of them had a leaflet on the implications of Brexit.

It stated that as long as you move to Cyprus before  29th March 2019 and I guess get the MEU1 before that date, then you are legally allowed to stay.

It then went onto state that after 5 years you can apply to get a MEU3.

We told the guy that I wanted to carry on working and was willing to commute To / From Cyprus, and that my girlfriend wanted to give her stressful job up and get a lower paid possibly part time job in the Catering sector in Cyprus.

He basically said you might want to work for me, all my staff are expats.

But reading the small print on the web, it appears our only way in is to buy a new property or have one built up to a value of €300,000 + VAT (I don't know what the VAT rate is)

It says it is possible to put down €200,000 + VAT and sign a contract for a property up to €300,000 + VAT

This is under a Category F permit.

But when I read the small print of this, it categorically stated that you cannot seek employment in Cyprus.

So I have a few questions that I am hoping people may be able to answer.

Is it possible for her to work in Cyprus for a foreign registered company to get round this ?

Or any other suggestions.

Can she work with the MEU3 ? ( although by the time 5 years have passed she probably won't want to)

Reading between the lines of the Category F it says.

You need to put €30,000 in the Cyprus bank
Buy a property in excess of €300,000 + VAT  or pay a deposit of €200,000 + VAT and sign a contract for one.
Have no Crimnal Record
Pay a fee of Euro 500.

We would need to sell our UK house in order to fund all this.

In theory we could perhaps get a mortgage using some of the equity to go down the €200,000 route and then when the property is ready sell our uk property to pay it all off.

From my perspective the longer we can hold onto our house the better, as we would need to rent prior to the one in Cyprus becoming available + both still working in the UK.

It states that you must become resident in Cyprus 1 year after getting the MEU1 permit.

So I guess that if we apply in joint names (as per his advice) and get the permit by 29th March 2019, we would both have to reside in Cyprus by 29th March 2020 ?

How many days do you have to reside per year to qualify ?

What happens if we sign a contract and it takes longer than a year for the property to become ready ?

We cannot afford to both give up work.

Although we would no longer have a mortgage, we still need to survive until we draw our pensions.

It seem that if you make the move pre March 2019 the benefits are you enjoy NHS type medical cover and the right to live there - Is that correct - Am I missing anything.

If we leave it until post March 2019

There is no guarantee that we have the right to live there permanently and no NHS type cover.

I personally think Cyprus would still welcome British and not force them to leave,  but I am unsure of the advantages or disadvantages of the Medical side.

I do not know if I have to take up tax residency in Cyprus and how this affects my Uk NHS cover, payments into ,my Uk pension (and the tax relief I get on that) and NI contributions and record.

It is a bit of a minefield.

But they are all falling over themselves to put us on a plane and visit the area.

My girlfriend is all in. I am a little more cautious and want to know the facts before I get on a plane.
So any help or advice would be gratefully appreciated.


For info I would favour spending the minimum possible, buying a plot of land large enough to extend and building a basic house with pool and perhaps adding to it later to extend it.

Thus keeping our initial costs lower.

Anyway

Thanks in advance for any replies

first off once you have lived here permanently for more than 90 days you must apply for the alien registration  certificate - once you have that you must be tax complaint here and register for tax  whether you earn here or not - further your UK issued ehic is only valid here as a tourist and only for emergency medial treatment....

you could come  here on the self sufficient route and not have work as long as you can show income sufficient to support you both and not be a burden on the republic of cyprus

nobody really knows what will happen if brexit happens - - as nothing is agreed until everything is agreed - however i think its unlikely that any one holding the MEU1 will be deported as there are far more cypriots living in UK than there are brits living here....

there is nothing wrong with commuting to and from and if you are both EU nationals you could both apply and one could apply as a dependent  family member of an eu national   

you dont necessarily have to sell your home

the financial requirements to stay on a self sufficient basis here are not massive sums

if UK leaves the EU all free healthcare cover paid for by nhs will most likely end = besides its not free more like low cost  -  but cheap private cover is available at about €165 per yr it is limited but better than nothing at all...

what the rules may be for working here after brexit should it happen  - whi knows but currently you dont need a work permit or entry visa this may very well happen if the UK leaves EU

work wise if you do any physical work here even online for your UK based business then you will still need to be tax complaint here too - you can of course opt for the dual taxation treaty and be taxed totally here ( €19500 each tax free allowance) but i would suggest you take professional tax advise in this regard

Beware of the 183 and 90 days tax rules though,,,,, tax professional is required

nothing wrong in taking their offer to pay for your visit and look at property here  - you are not forced to do anything

but take the time to do your research into all matters - dont be rushed in to making rash or emotional decisions -  areas / locations  services etc  may  not be the same at different times of day and night...

Thanks Toon

It seems I may have got some information wrong.

The Category F seems to be aimed at Non EU people.

I have done some more research but the information out there is still confusing.

Here is what I think I know.

1) You need to apply for an MEU1 (some sites say if you plan to stay more than 4 months, some say you apply after 3 months of being there and some say you apply after 4 months of being there.).

2) Under the current rules you can convert your MEU1 to an MEU3 after 5 years of continuous residency.

After that it gets a bit complex

A) BREXIT is looming - There is talk of a transition period - Basically be in country by 31st December 2020 and have started the immigration process to retain grandfather rights.

But the writing of the Transition Period has a clause that you can leave the member state of residence (Cyprus in this case) for a period up to 5 years and still retain your right to permanently settle.

Of course this all has to be formally agreed and then it is how the Cyprus authorities view this part of the clause.

B) With regards to the MEU1 I am unsure if it is possible to stay in a hotel during my periods in Cyprus or you are forced to rent a permanent place.

From a cost perspective, it may be cheaper to get a hotel with free shuttle near the airport vs renting a place and having to rent a car or pay for a taxi.

As I would initially spend 4 days in country and 4 days back home with the girlfriend.

My understanding is you must spend 90 days in 6 months (again unclear) or maybe 183 in a year.

I don't know how the authorities would view the hotel idea - It is only until we can both move out and get settled.

C) It seems the MEU1 gives you the right to work, but can you initially come out as a non worker (as long as you have proof of funds and health cover) and change to a worker, self employed or student at a later date ?

I think that once I had my MEU1, that as my close relative / Common Law Spouse, my girlfriend can join me at a later date once I have established a presence ?

I wrote to the British High Commission and asked them to clarify their understanding of the Brexit Transition.

But I have seen nothing new from the Cypriot side.

As all countries have initially agreed It would be good if they could clarify.

I am sure you know this, but just in case below is the transcript of the proposed agreement.

The 5 year thing may mean you have to get permanent residency first (spend 5 years in Cyprus) but can then leave for up to 5 years and retain your rights.

Would Cyprus immigration law override this ?

So I guess people need some clarity from the Cypriot government on this.

Fancy a bit of lobbying ??

Thanks again for the info so far



-------------------------------------------------------------------
Agreement so far on the rights of UK nationals in the EU

The UK and EU Commission have so far agreed that:
•UK nationals and their family members covered by the agreement will continue to have the same access as they currently do to healthcare, pensions and other benefits.
•UK nationals and their family members covered by the agreement will be able to leave their Member State of residence for up to 5 years without losing their right to return.
The UK and EU Commission have also agreed that:
•EU27 Member States may require UK nationals and their family members covered by the agreement to apply for a residency document or status conferring the right of residence.
•Administrative procedures for such applications will be transparent, smooth and streamlined.
•Where an application is required to obtain status, UK nationals will have until at least 6 months after the end of the Implementation Period to submit their applications.
•Residence documents will be issued free of charge or for a charge not exceeding that imposed on nationals for the issuing of similar documents (such as passports).
•UK nationals who, before the end of the Implementation Period, are holders of a valid permanent residence document or a valid domestic immigration document conferring a permanent right to reside, will be able to exchange that document for a new residence document free of charge. They may be required to provide proof of identity and undergo criminality and security checks.
•The introduction of administrative procedures, or changes to existing administrative procedures will be decided by each Member State. We will publish details on these administrative procedures as soon as possible.

Just to be clear are you both UK or EU nationals? I am not sure

- the usual period is within 3 months as with other member states . but tbh 4 months is no great shakes really they really are not that strict on eu nationals  and currently once you have the yellow slip nobody really cares or tracks how often you go to and from. however that may change if brexit happens and if visas are required for entry.... personally i dont think it will involve visas here but each state will make there own rules for that.... and we will as guest have to comply with whatever they are. and yes you can come here as self sufficient and gain residency on that basis and then start work if you wish to.. either way you are obliged to register for tax no matter where the work is done or whether you would pay tax or not

i d say the transcript is at this stage meaningless as it has not been formally agreed as part of the withdrawal process indeed clause 32 has been removed  in the latest text
so all to play for

if you are initially to do 4 days here then 4 days back home for a period of time there is no need to apply for residency and yes you will have to have an address not a hotel address, plus healthcare cover and evidence of sufficient income to support you (both)
plus obviously a valid current EU passport, things do get more difficult and thus more administrative hoops to jump through as a TCN

yes you can apply for PR after 5 years here (we are on 4 yrs now) - its not an automatic right  you do have to apply for it with the MEU3. Personally I do not trust the UK gov to do the right thing and as such I am actively seeking information and details about citizenship here......so we are considering this option seriously  but have to be clear on UK state and private pensions rights.....plus i must not forget what we may lose in terms  of current healthcare cover and the healthcare cover we would have when we formally receive the uk state pension in 4-5yrs  - I would personally ditch the UK passport  asap as this option is proved to be the right one but it needs to be 100% clear what the implications are at the moment nothing is clear. so just a tad in limbo right now

not sure what you mean about grandfather rights  - once here and you have your yellow slip (MEU1) which gives the holder the right to stay here without an entry visa and  currently it also allows you to work here without a visa too... most banks for example  will require this to offer you banking services  = some banks may not ask for it immediately as they will currently as an EU national accept your passport but will want it eventually.

IF brexit happens, and dependent on which version happens  it may be a game changer for millions.... and currently nobody knows  - but i temper my limbo with the clear fact
that Cyprus like Malta has had long standing links and ties with the UK long before the common market/EEC/EU ever existed so i cannot see that changing much if at all.. besides there are far more cypriots living in UK than there are brits in cyprus.. so the knock on would be serious.

as for your partner / spouse (dependent on nationality and status and the route with which she applies for residency) if there is no marriage then a durable relationship of 2 years or more may need to be proved or she will have to have evidence of personal income healthcare etc etc just as you did  - - the other option as an EU national she could apply as a dependent family member of an eu national....but if not married to you then the durable relationship requirement is likely to come into play 

we dont know what cyprus may need to agree to until after whatever happens happens  if it happens - in limbo until it does.... but we can all make contingency plans just in case just as i am.

not sure if this helps or simply adds to the confusion

Hi Toon,

We are both UK Nationals, but her father happens to be from Belgium.

But she never applied for or considered Dual Citizenship as she was born and has lived in the UK all her life (North East lass originally - Albeit a Sunderland supporter !)

Looking at the Belgium immigration services, it appears they changed their legislation and shut the door to citizenship unless you have lived there 5 years and have a Belgium parent.

So while she satisfies one criteria, she does not satisfy the other.

It was just a thought as EU citizenship could be then passed down to her daughter + to me if we ever get round to tying the knot.

The term Grandfather rights is basically a precedent set in time.

By being in the country and having got the Yellow Slip before the cut off date, you are then protected as long as you continue to fulfil the obligations in terms of residence etc.

I will have to look up clause 32.

But the clause about being allowed to leave Cyprus for up to 5 years and be free to return under the deal could be helpful.

It all depends on what we eventually decide to do and when.

Personally the longer we can stay here, the better.

I don't have to commute by plane + all the costs involved in perhaps having to buy a car in Cyprus, rent a property and Health Insurance.

Also if she has not quit her job, she is bringing income in as well.

Then we have more money to retire on.

No one knows what will happen to the UK Property market.

It looks like a slump at the moment, and we don't want to leave it too long to sell.

But on the flip side, the builders are posting record profits, so there must be some demand.

It is a 2 way street. Thousands of people could flood into the UK before the deadline bringing their kids, spouses, parents, and grandparents in - All legally.

They are going to all need homes.

It could equally go the other way where everyone leaves, but I think the former personally.

A lot of would be retirees are looking at the EU countries to retire to and like us are monitoring the BREXIT deal to know what to do and when.

We are looking at a short list of countries, but Cyprus is top of the list and we are probably going to come and re-visit in September (maybe sooner if we can fit it in)

Hopefully things may be a bit clearer by then.

Hawkeye

we will have to hope so - as for us we have been here 4 yrs and love the place having spent 6 yrs living in malta . who knows where we will end up as Crete is on my target list of places to try.. but if onward movement is restricted or lost completely then we may have to reconsider things

when we moved to malta 10 years ago we sold up completely and were lucky - timing was so important  - the numbers had to stack up and they did ... and when our time was felt to be coming to an end there we upped sticks again to live here....

a good move for us