Cyprus Guide: Money

Our money guide provides information on currency, bank accounts, credit and debit cards and money transfers. If you need to open a bank account, we will explain how to do it - step by step.

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  Banks

  Where to manage your finances

  Cyprus’ banking system is modelled on the British system, with banking practices, services and methods of management and control closely resembling those in the UK.

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  Accounts

  How to open a bank account in Cyprus

  You can open a bank account in Cyprus whether you’re a resident or a non-resident. It’s advisable to open a bank account in person rather than by correspondence from abroad.

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  Cash, Cheques & Credit Cards

  How to use them

  Following the Republic of Cyprus’ EU accession on 1st May 2004, Cyprus adopted the euro (€) in January 2008.

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  Cost of Living

  What is the cost of living in Cyprus?

  No doubt you would like to try to estimate how far your euros will stretch and how much money (if any) you will have left after paying your bills.

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  Importing & Exporting Money

  How to receive and transfer money

  EU membership means that all previous exchange control restrictions have been lifted, and there are now no restrictions on importing or exporting funds in any currency, although you must declare large amounts (see Declaration below).

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  Taxes in Cyprus

  An introduction to Cyprus' tax system

  An important consideration when buying a home in Cyprus, whether you’re a resident or non-resident, is taxation, which includes income tax, immovable property tax, capital gains tax, inheritance tax and value added tax.

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  Income Tax Liability

  Who is liable to pay income tax?

  Your liability for income tax in Cyprus depends on whether you’re officially resident there.

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  Taxable Income

  What part of my income is taxable?

  Income tax applies to both earned and unearned income.

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  Taxation of Foreign Pensions

  How will your pension be taxed in Cyprus?

  If you’re receiving a pension in Cyprus, you have a choice of two taxation systems: your pension can be taxed at standard income tax rates, i.e. with the first €3,400 tax-free or it can be taxed at 5 per cent when exceeding that sum.

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  Taxation of Property Income

  How much is tax on property income?

  Residents and non-residents must pay tax on property income at standard income tax rates, and property income must therefore be included in your annual income tax declaration.

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  Income Tax Rates

  Calculating your income tax

  Current personal income tax rates in Cyprus are as follows:

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  Calculation & Tax Return

  Filing and payment

  The tax year in Cyprus is from 1st January to 31st December. If you’re an employee and have no sources of income other than your salary, you don’t need to make an annual tax declaration.

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  Immovable Property Tax

  Who needs to pay it?

  This is an annual tax payable by all property owners in Cyprus, irrespective of their residence status.

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  Capital Gains Tax

  Who needs to pay it?

  Capital gains tax is payable by both residents and non-residents at a rate of 20 per cent on gains from the disposal of immovable property in Cyprus.

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  Value Added Tax

  Rates & Exemptions

  There are three rates for value added tax (VAT): the standard rate of 15 per cent, which was introduced on 1st January 2003; the reduced rate of 5 per cent, which came into force on 1st January 2000; and zero rating for certain goods and services.

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