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To rent or to buy? That’s one of the first questions facing anyone who moves to Cyprus. And I’m not talking about housing, although obviously the decision is relevant to any expat looking for a home.
It is cars I am thinking of. Cyprus is a wonderful country, but you won’t see much of it without one. And a car is a big help if you want to view a decent selection of potential homes.
In both cases I recommend the new expat to rent for a while. In Cyprus it is easy and relatively cheap to rent a house or hire a car and, in both cases, this will give you the chance to sample the choices available and decide what you really want.
If you intend to own just one car, you will have to decide on your priorities: a small, nippy model for crowded city streets or a hefty 4×4 to get you off the beaten track. You won’t know this until you have had a chance to get out and about and that is better done in a rented vehicle.
When you do come to buy a car, the recently announced decision to abolish vehicle consumer tax may have a bearing on your choice.
It will reduce the price of top-of-the-range cars, in particular. New cars could see their prices drop by anything from €200 to €40,000 for some top-class luxury models.
Changes in the road tax scheme are also being introduced. Under the current system, only carbon dioxide pollutants are taken into account, but with the new scheme, all pollutants emitted from exhausts, such as nitrogen oxides (NOx), microparticles (MP) and organic volatile substances (VOC) will count.
The formula for the calculation of a car’s road tax will be take into account the pollutant levels, plus the age of the vehicle and the size of the engine.
The rules apply to imported new and second-hand cars. Some owners will pay close to zero road tax, if their car falls into the right category. The changes will not affect the 900,000 cars already already on the roads here or any that have been ordered. But they will have a big bearing on your ultimate choice – all the more reason for taking your time and getting it right.
All aspects of the expat life work better with a bit of planning. I always advise expats to look for a full lifestyle package, one that will secure their finances and match the income they can have with the lifestyle they want, including homes, cars, pension plan and health insurance.
Matching income to expectations is the secret and the Woodbrook Group, an international firm of financial advisers with its headquarters in Cyprus, helps our clients do that, offering them peace of mind and a secure environment in which their money can grow.
We are not owned by any financial institution or life insurance company and can offer you unbiased and impartial advice to help you understand your options and how to address your income needs.
