bob7

Hi there,

I am a UK citizen. My wife is Chinese with Indefinite Leave to Remain status.
Cyprus Republic west of Limassol is our no1 retirement choice, for 2013.
Initially we plan to rent, followed by a purchase if the island meets our expectations.
The idea is to rent a 4 bed coastal property (or within easy access) and to offer b&b to visitors.
Based on a 120 day p.a. occupancy of 2 double bedrooms, my web-researched figures seem to add up for us.
My questions are :
1. it is legal for a private residence to offer b&b ?
2. is 120 days p.a. occupancy over-realistic ?
3. What (if any) are the tax implications ?
4. What official paperwork would be required ?
5. What agent's fees can be expected ?
6. Rather than a coastal location, would an inland property attract better rates ?
7. Have I chosen the best area to combine a small business with residence?

Any helpful comment on this subject would be most appreciated.
Thanks in advance.

ogaya

I spent a few years in Cyprus - Paphos is by far a nicer place to live than Limasol. Have you considered it?
Cyprus is an all round destination so your target of 120 days sounds realistic
Tax/Paperwork - not sure you may have to register
You should focus your marketing costs on property rental websites as that is how the vast majority of people search and book properties, also commision a simple website of your own
Costal is always better if you look at pafos check out appartments in the universal area as visiotors then dont need to hire a car.
You need to look at a property with a separate anex for privacy and independance

royfield

i have a spare room to rent out in xylotubo if any one is interested let me know good price

Aliland

I've not actually ever been to Cyprus, but I'm pritty familiar with Chalkadiki and Thasos over the last decade. Basically there are around 90 days in the middle of summer where you'd have to run an expensive dive not to be booked well in advance. Chalkadiki's nice little places start getting guests from mid may and after August still have close to a month if they cater towards more mature couples. While I much prefer Thasos, Its quite a trek for foreign tourists- Thessaloniki airport being on the expensive side is a turn off too hence the huge amount of Serbians who can drive over. As Crete is probably a little warmer for longer, 120 days sounds OK, although I would expect a discount after the 20th of August. I do have friends who go totally out of season, but judging from what they say, they do expect to find cheap accommodation.
As far as paperwork goes, I don't reckon you will have a big problem, but it WILL take time. Unless you know the mayor, you might have to run around a lot. I know a guy who opened a business a few years back and the estate agent did most of it - after all he knew people, but give yourself LOTS of time.
One thing you need to look in to is health insurance. Greek self imployed people often pay in to an insurance scheme that looks pretty comprehensive, you will only be covered by UK for a short time. Its been my experience that EU citizens get treated much like Greeks provided they pay tax, but your wife will be a different matter. Having said this, a 'family' health book could cover you as the named person with her as your spouse. If health insurance is causing a big cut to your profit, look in to IKA. Basically you get a stamp for each day of work, and a certain number of stamps gets you a years cover. You can, for example, work one hour a day - four days a week , out of season months only and you are both covered. The wage is irrelevant so just something you don't mind doing such as pulling a few pints or teaching English.
I'm rambling a bit so I'll just wish you all the look in the world.