A) Banking System/Currency/Mortgage Info
Banking in Cyprus closely follows the British system and
is well developed and organized. The banks have branches conveniently
located throughout the towns and offer efficient service in modern
surrounding, equipped with the latest technology.
Many Cypriot Banks have branches throughout the world and International
Banks also have branches throughout the island for the convenience
of their customers.
The Cyprus currency system is based on the decimal system, with the
Cyprus Pound made up of 100 cents. Coins range in value from the half
cent to 50 cents and there are 4 bank notes: CYP1, CYP5, CYP10 and
CYP20. The exchange rate in relation to other currencies is issued
daily by the central bank. Cyprus will of course change over to the
Euro in due course, approximately within 2-3 years after becoming
a full EU Member State in May 2004. There are both domestic and foreign
banks within Cyprus all operating to an international standard , offering
a range of services, from investment, hire purchase to mortgage facilities.
Banks are normally open between 8.30-12.30pm Monday to Friday.
Bank Accounts
EU citizens can easily assess a foreign currency account as well as
local deposit account or you can open an account with a Local or International
bank operating in Cyrus and run the account from there your home country.
Non EU citizens: can open an account with a Local bank or International
Bank in your country of residence
Credit cards: Most major cards are accepted and used in Cyprus such
as Visa, American Express, Diners club and Master Card.
Mortgage Facilities
All commercial banks in Cyprus are authorized to offer mortgage facilities
to assist in the purchase of property. The loan will be in foreign
currency. The amount ranges from 60%-80% of the value of the property
with a repayment period ranging from 7 to 10 years. Easy terms of
payments and long-term in-house finance schemes are also available.
B) Cars/Driving
Visitors may drive using their National Driving Licence. If a foreigner
wishes to get a Cypriot Licence they must either convert their national
Licence to a Cypriot one or take a driving test. Driving is on the
left hand side and there is a god network of roads to all the major
towns and resorts.
C) Cost of Living/Standard of Living
Recent statistics point to Cyprus as one of the most inexpensive countries
to live in Europe with regards to the cost of living, within a developed
nation, while also providing a high European standard of living. The
annual per capita income is about US$15,000 with the average living
cost reaching to only 70% of most parts of Europe, Japan or the USA.
The local markets flaunt a wealth of colourful fresh fruit and vegetables,
meat and fish, and Cyprus' modern supermarkets are fully stocked with
a large range of local and imported goods. In fact a recent survey
has shown that a couple who own a house and a car can live comfortably
in Cyprus on approximately CYP£300 to CYP£350 a month.
Indicative prices of goods:
| 1kg tomatoes | £0,70 |
| 1kg potatoes | £0,30 |
| 1kg grapes | £0,50 |
| 1kg watermelon | £0,20 |
| 1kg apples | £0,90 |
| 1kg fresh chicken | £1,50 |
| 1kg fresh pork meat | £1,60 |
| 1Litre fresh milk | £0,50 |
| 1 bread loaf | £0,50 |
| 70cl wine | £1,60 |
| 70cl brandy | £2,00 |
| 1 litre unleaded petrol | £0,42 |
| 1 litre diesel oil | £0,25 |
D) Crime Rate
Cyprus enjoys a remarkably low crime rate, the lowest in Europe,
just another reason for being popular among foreigners as a first
choice location in which to reside. These days security has become
a key element in the property world and visitors are invariably
surprised and reassured by this relaxed aspect of life on the island,
where crime is virtually unheard of and theft is not commonplace.
E) Duty Free
Non Cypriot residents are entitled for duty free privileges, including
cars and domestic appliances.
Duty free cars x 2 for a couple. A medium sized saloon car is approx.
just over ½ the UK price.
F) Earthquakes
Every couple of years earthquakes may happen in Cyprus yet people
usually don’t even notice them. All the buildings in Cyprus
are earthquake resistant and planning permission is only given to
those buildings using the Government’s approved method. As
such, insurance companies will secure your property, against earthquakes,
at a very low annual charge.
G) Education
There are Kindergarten schools, Junior and Secondary schools, catering
for both Cypriot and foreign students providing high standards of
education. If you want your child to attend a Government school
then a comprehensible knowledge of the Cypriot language is essential.
Plus there are many private and International schools located all
over the island with exceptionally good reputations and excellent
results of achievement. There are also many private colleges offering
a variety of programs in collaboration with other European and American
universities.
H) Electric Current
220 - 240 Volt
I) Government System
Cyprus is an independent and sovereign republic with an elected
president (5 year election cycle) as head of state. The legislation
power lies with the elected House of Representatives and appointed
Council of Ministers. The legal system is based on the British/European
system with independent power exercised by the judiciary.
J) Health Care & Medical
Cyprus has none of the quarantine diseases and the sea and air pollution
is negligible. It has a very high standard of medical services.
Hospitals, private clinics and medical centres are equipped with
the latest facilities and technologies and are manned by qualified
doctors, educated in the UK and USA. The latest operating techniques
are standard, with heart bypass surgery and kidney transplants now
routine in most hospitals.
Many Cyprus doctors of various faculties jointly run polyclinics
whose standard is comparable to other highly developed countries.
The high standards can also be judged by statistics which show that
one in every 600 Cypriots is a qualified member of the medical profession.
Competent doctors and dentists, specialists and general practitioners,
are available everywhere and their fees are quite low compared to
European standards.
The cost of medical treatment in government hospitals is very low.
Those wishing to consult doctors privately will find a wide choice
of competent doctors, specialists (in all fields of medicine) and
surgeons practicing on the island. The minimum charge for a private
consultation is approximately CYP£10.00.
For non Cypriot residents, there is low cost international private
medical insurance available which is relatively inexpensive and
can be arranged through an Insurance company or through your Bank.
Health insurance schemes start from around £300pa., while
a doctor’s visit is approximately CY£10-£20. In
addition the General Hospital offers Health Care to foreigners once
you have become a permanent resident, for a small annual fee. Most
Pharmacists are very well informed and may save you a trip to the
Doctor and many pharmaceutical products in Cyprus can be bought
directly over the counter.
K) International Relations
Cyprus is a member of the United Nations, Council of Europe, British
Commonwealth, a member of the Non-Aligned Movement, the World Bank
and I.M.F and from 1 May 2004, a full Member of the European Union.
L) Language
The local population is Greek speaking. Cyprus was once a British
colony resulting in over 85% of the population speaking English.
It is also useful to note that all street signs, direction signs,
shop signs etc. are written in English. Knowledge of German, French,
Russian and other European languages is increasing with the Island’s
rapid growth in tourism.
M) Legal System
Based mainly on the Anglo-Saxon legal system. The Land Registry
Department in Cyprus is one of the most advanced and reliable system
in the world. (Government correspondence can also be provided in
English and all contracts and other legal paper work are produced
in English).
N) Pets - Household
Pets can be brought into Cyprus from a European country if they
have all the necessary vaccinations. An import permit must be obtained,
in advance, from the Department of Veterinary Services, Nicosia.
A period of 6 months' house quarantine may be imposed. This may
soon change as the system of pet tagging, with a computer microchip,
placed in the animal's ear by a Veterinary Surgeon has started to
take over. This system of animal identification is enforced by the
EEC and is known as a "Pet Passport," allowing animal
owners to travel freely around Europe with their pets.
O) Residency & Residence Permits
Temporary Resident Permits are easily obtained for persons living
in Cyprus, who have purchased property. You can apply for a limited
visa and after 6 months of residing in the country, you can apply
for residency. Granting of this permit requires the existence of
an external bank that has a branch in Cyprus, plus other relevant
documentation. Temporary residence status can be from one to four
years.
All citizens wishing to reside permanently in Cyprus must apply
to the Committee of Aliens Control. To obtain residence permission
a Non-Cypriot should fall in the following categories:
Category A: This category includes people who are interested to
open an offshore office in Cyprus.
Category B: This category includes self-employed foreigners who
are interested to open their own business in Cyprus on the condition
that their operations will not have negative impact on the economy
of Cyprus. Additionally the minimum capital required is CY£150.000
Category C: This category includes Non-Cypriots who are interested
to be employed in Cyprus by a Cypriot employer. Permission is granted
on the condition that their employment will not lead to an increase
in the local unemployment in the profession they will practice.
All Non-Cypriots wishing to take up employment in Cyprus are required
to have a permit under the Aliens and Immigration Law.
Category D: This category includes foreigners, not employed in Cyprus,
but who would like to reside permanently in Cyprus. Permission will
be granted provided that a) they have no criminal record in their
home country or in Cyprus and b) have the financial means to support
themselves (pensions and investments) An income, per couple, is
in the region of CY £12,000 pa
Once granted permanent resident status, an Internal Bank Account
can be opened
NOTE*We suggest any of the above information be checked with the
correct Government Department in Cyprus. While our intention is
to supply up to date information, we can take no responsibility
as laws can, and do, change.
P) Recreation and Nightlife
The island has a cosmopolitan environment and entertaining/eating
out is inexpensive. There are clubs and bars for all ages varying
from discoteques to live music all of the major towns and most of
the larger villages. There is every type of sports activities (land
and sea), yachting marinas, golf courses and snow skiing.
Q) Taxes
Cyprus is unique when it comes to the taxation aspects of living
on the island. Cyprus has conducted treaties for the avoidance of
double taxation with Austria, Bulgaria, Canada, China, Czech Republic,
Slovakia, Denmark, France, Germany, Greece, Hungary, Ireland, Italy,
Kuwait, Norway, Poland, Romania, Russia, Sweden, U.K, USA and Yugoslavia.
Furthermore there are negotiations for the ramification of treaties
with Egypt, Malta, Syria, Belgium, Finland and the countries comprising
the Commonwealth of Independent States. The main purpose of these
treaties is the avoidance of double taxation of income earned in
any of these countries.
For example, United Kingdom citizens may take advantage of the Double
Taxation Treaty existing between the U.K. and Cyprus. This enables
you to receive your pensions and investment income in Cyprus FREE
of U.K. withholding tax. This Treaty is unique to Cyprus since it
includes both public and private sector pensions.
Furthermore, Cyprus taxes the assets of expatriates only on a remittance
basis. Many expatriates can, therefore, keep assets growing free
of tax in an offshore bank, investments or trust, and simply bring
into Cyprus what they need. The remittance system compares extremely
well with the more common world-arising tax system, used in many
other countries, including favoured sunspots like Spain. Recent
tax reforms sharply reduce the tax burden for alien residents, in
recognition of their value to the economy.
Individual alien residents are now taxed on a flat basis of 5% per
annum on pension and investment income brought into Cyprus, (as
opposed to 20% in the UK). In special circumstances exemptions totalling
up to CYP£4,000 per person or CYP£8,000 per married
couple may apply. This compares with competing destinations where
property owners are subject to high tax exposure levels of up to
60%.
Insurance pensions can be paid to retirees in Cyprus on a similar
tax free basis, and are index-linked by virtue of the Reciprocal
Agreement, compared to their "frozen" status in other
overseas destinations.
According to the tax system you are obliged to declare your income
from pension or any other sources to tax authorities. There are
two groups of taxed income, as follows:
- Those that have income from sources, other than pensions, derived
outside of Cyprus, are entitled to pay 5% income tax with the first
CY£2,000 (two thousand pounds) being exempt.
- Those that have income from their pension are entitled to pay
5% income tax, the first CY£6,000 (six thousand pounds) is
exempt
Taxation Benefits / Double tax Treaty
Cyprus has a double taxation treaty with over 40 countries including
the UK. The main purpose of the treaties is the avoidance of double
taxation of earnings in any of these countries.
Despite recent tax reforms due to Cyprus’ accession to the
EU, taxation in Cyprus is still low in comparison to other European
countries.
If you are present in Cyprus for more than a total of 183 days you
are considered a resident and will be subject to taxation on your
worldwide income as follows:
| 2003 | 2004 | % |
| Up to CY£9,000 | Up to CY£10,000 | Nil |
| CY£9,001 - CY£12,000 | CY£10,001 - CY£15,000 | 20% |
| CY£12,001 - CY£15,000 | CY£15,001 - CY£20,000 | 25% |
| CY£15,001 and above | CY£20,001 and above | 30% |
Pension income from abroad will be taxed at the rate of 5% on amounts
in excess of CY£2,000 with the option to be taxed in accordance
with the above scale if desired.
For non-residents dividend and interest income received from abroad
or from within Cyprus is exempt of income tax.
However, if an individual is considered a resident of Cyprus, dividend
income is subject to a 15% defence contribution and if the dividend
is received from a Cyprus company the defence contribution is withheld
at source.
If the dividend is received from abroad, the defence contribution
is payable by the individual recipient. The same rules apply to
interest income however interest income is only subject to a 10%
defence contribution. If an individuals total income (including
interest) does not exceed CY£7,000, then the defence contribution
on interest is charged at 3% instead of 10%. Taxes on this type
of income which are paid abroad are deducted from the tax payable
in Cyprus.
Refer to the section - A Guide to Purchasing Property for other
relevant tax information
R) Telecommunications
Cyprus ranks third in the world for quality, up to date modern telecommunications
facilities - an important factor in establishing the island as an
offshore business centre. CYTA (Cyprus Telecommunication Authority)
has a network which enables participants to have direct dial access
to over 200 countries.
Telephone and Postal communication is efficient and reasonably priced.
An international call, during cheap rate call periods, after 8 pm
and all day Sunday, costs as little as 16 cents per minute. Mobile
telephones are very accessible and International rates are very
low. Telephone cards can be purchased from Kiosks and Supermarkets
at a cost of CY£3.00-CY£10.00. Postal charges for international
mail are 26 cents for a post card and 31 cents for a letter.
S) Time
+2 hours GMT
T) Transport/ Travel
Travelling Documents
Entry formalities are very simple. All citizens of EU member countries
may enter Cyprus on presentation of their identification card only
or passport if no identification card available.
International Travel
Excellent travel links have contributed, to a large extent, to the
fast development of the island. There are 2 international airports,
Larnaca and Paphos which provide frequent flights to all major European
cities and then on to the rest of the world. More than 40 airlines
operate over 260 weekly flights to and from Cyprus as well as more
than 60 charter flights flying into Cyprus. In addition there are
2 main ports - Larnaca and Limassol which also account for many
travellers visiting Cyprus.
| Flight time from Cyprus to |
| Athens | 1h 20 min |
| Berlin | 4h .00 min |
| Brussels | 4h .00 min |
| Dublin | 5h .00 min |
| Frankfurt | 3h 30 min |
| London | 4h 30 min |
| Moscow | 3h 20 min |
Local Travel
Driving is on the left – a great relief to many English people!
The distance between towns is relatively short and is covered by
a good network of modern roads that are constantly being extended
and upgraded. Road signs are similar to those used in Europe and
more specifically to the UK. The public transport service has regular
connections between towns with share taxis and comfortable coaches
and private taxis and rental cars are also readily available.
| Distances from Larnaca to |
| Nicosia | 30 kms |
| Limassol | 60 kms |
| Paphos | 120 kms |
| Paralimni | 30 kms |
| Protaras/Ayia Napa | 25 kms |
U) TV-Radio-Newspapers
There are 5 national TV channels having the films in English and
also many radio stations broadcasting in English too. There is the
availability of satellite dishes providing international TV connections.
There are 3 newspapers and local magazines published in English
and almost all main international press is available.
V) Weather – Climate & Temperature
With one of the healthiest climates anywhere on the globe, Cyprus
is registered as the sunniest island in the Mediterranean and enjoys
340 days of glorious sunshine per year, allowing full use of its
crystal clear waters and sandy beaches. The swimming season starts
approximately in April and does not end till November with the warmest
sea temperature ranging from 16°C in January to 32°C in
August.
| Average Monthly Temperature 0C |
| January | 17,1 |
| February | 18,2 |
| March | 20,4 |
| April | 23,2 |
| May | 27,7 |
| June | 30,0 |
| July | 32,4 |
| August | 32,8 |
| September | 31,1 |
| October | 28,3 |
| November | 23,5 |
| December | 18,9 |
W) Weights & Measures
The metric system is used (Kilos, Litres, Kilometres and Meters).
Shopping in Cyprus is less hectic than in most European countries
and it is a casual and relaxed experience offering you time to browse
around at your own leisure.
