LOCAL AUTHORITY RATES
AND TAXES
Approximately, it works out to CYP 50 – 150 per year varying on
the size of your property. This tax is for your street lighting,
sewerage and refuse collection etc. The usual utilities like water,
electricity and telephone are payable individually according to
your consumption on the metre reading.
Cyprus is exclusive when it
comes to the taxation aspects of residing on the Island. If you
are retired and drawing a pension you are exempt from all withholding
taxes and may be taxed at an actual rate of maximum 5% or less
depending on income after a liberal allowance (presently CYP 6,000
per person). Further, Cyprus has Double Taxation Treaties with
many other countries including Europe, safeguarding its residents
from paying taxes in both countries. This is an opportunity for
citizens of those countries to benefit of the low rates in Cyprus.
VALUE ADDED TAX (VAT)
A revised flat rate of 15% was introduced in May 2000 on goods
and services. Real Estate is currently excluded from VAT along
with most food items, essentials and medicine.
DUTY FREE PRIVILEDGES
There is no import duty on vehicles and retired couples have the
advantage of an additional concession of two duty free cars.
Personal possessions, household, furniture etc can be imported
free of any taxes provided they are for the individuals use and
they are not brand new, demonstrating previous usage.