Taxation & Property Ownership in Cyprus

A homeowner living in Cyprus for five years can acquire the right to obtain a Cyprus passport. An acquisition of property gives an automatic right to reside in the island. This is unique to Cyprus, unlike other member countries of the E.U.

• Vat currently stands at 15% (on the lower side of most EU countries)
• Import of foreign income of any person derived by way of interest on foreign capital imported into Cyprus and deposited with any account in Cyprus is exempt from tax.
• Pensions obtained outside Cyprus, which are received in Cyprus, are liable to Cypriot tax at a maximum of 5% per cent on the excess of CY£6.000 per person

A couple is therefore, allowed C£12,000 tax-free.

Double taxation treaties with European and other countries, safeguard residents from paying tax in both countries. This gives the option to citizens of those countries residing in Cyprus to take advantage of the very low Cyprus rate.

• Retired couples are allowed duty free cars. Household goods and furniture can be imported without tax by immigrant retirees, provided they are for personal use and are not brand new.