Soaring costs driving expats out of Cyprus

BRITISH expats living in Cyprus are packing up and leaving the island due to rising living costs, a senior representative of the expat community said yesterday.
“There’s been a lot of discussion about it recently among the expat community,” says Tina Healey-Donaldson, Chairman of the Limassol Branch of the UK Citizens’ Association (UKCA). “There are lots of drawbacks to expats living on this island, and this morning when I woke up I thought to myself, ‘why do we live here?’”
Her husband, 85-year-old Ian Donaldson, has seen the expat standard of living plummet in recent years. “The costs of everything in Cyprus have risen many times compared to what they used to be, including fuel oil for heating in winter, which is needed much more as one ages. Health-giving fruit and vegetables that used to be very reasonable, are rapidly becoming a luxury.”
One of the main difficulties currently facing expats are low interest rates. When Healy-Donaldson first came to Cyprus 21 years ago, interest rates were 13 per cent, but today, they stand at just three per cent. Coupled with poor exchange rates, this makes for a depressing picture.
By her own calculations, in April last year the rate of exchange was such that a pension of £1,249 sterling a month from the UK converted to £1,154 in Cyprus. But, for the same month this year, a pension of £1,278 sterling was worth only £1,040 in Cyprus, a drop of £114 a month.
“Also the interest rate when I first came to live here in 1982 was around 13 per cent, so on £50,000 the interest would be £6,500, whereas now it is a mere £1,500, a drop of £5,000 per annum. This used to pay for house maintenance and holidays,” she added.
Health costs are also driving expats out of Cyprus.
“I know for sure that some expats are returning to live in the UK due to health reasons, because they are still entitled to use the National Health System there. People are living longer these days, but unfortunately they are also becoming ill, so medical treatment is required on a regular basis and there are some of us who are finding it extremely difficult to find the money to pay the bills for such treatment.
“With increasing prices in Cyprus it is no longer possible for some expat Brits to continue living here. The whole thing is definitely grim.”
Healy-Donaldson has recently noticed disillusionment among many UKCA members reaching a new high, with many looking for greener pastures elsewhere. “I know that people are leaving – they are experiencing a lot of financial difficulties and those that can’t afford to stay here or even go back to the UK are looking for other places to move to.
Spain, she says, is fast becoming a popular alternative to Cyprus.
“We had a member who about 18 months ago decided it was too pricey here and moved to Spain. Spain seems to have kept its prices down despite joining the EU and is closer to the UK after all.
She adds that expats who left Spain for Cyprus were now returning there.
“People we know who came here from Spain for better weather are returning there where prices are steadier and those who need to work to supplement their income are free to do so.
“I (also) know a lot of people recently who have gone back to the UK – it used to be that it was because they missed family, but nowadays it’s increasingly becoming financial. People are not sticking it out any more. Cyprus has got the weather going for it, the friendliness of the people and a low crime rate, but (the financial aspect) is making a lot of people think twice.”
When Cyprus enters the European Union in May next year, many expats fear the situation will deteriorate further. “With going into the EU next year and using the euro in 2006 things are obviously going to get even more expensive,” she said.