Banking in Cyprus

The banking system in Cyprus closely follows the British system. Banks are well developed and organised, with branches conveniently situated throughout the towns, offering efficient service and equipped with the latest technology.

Non-Cypriots can open foreign currency and local deposit accounts very easily, to use whilst still resident outside Cyprus in order to facilitate property purchase etc. Once permanently resident in Cyprus, you can establish a current accounts to be used for everyday purposes, such as Standing Order payments to utility companies.

Banks are generally open between 8 am and 1 pm, Monday to Friday, although some local variation exists.

Mortgages

All commercial banks in Cyprus are authorised to offer mortgage facilities to assist in the purchase of a property. The amount ranges between 60% and 80% of the value of the property, with repayment period subject to negotiation.

Please see details of Alpha Panareti's highly preferential mortgage offer

Income Tax

Individual non-Cypriot retirees are taxed at a flat rate of 5% on pensions and investment income brought into Cyprus and the first CYP 2,000 of that income is exempt from tax.

If you have a substantial income, you are advised to contact a local accountant in order to maximise the various tax arrangements available.

With accession to the EU, it will no longer be necessary to have a full Work Permit to work in Cyprus and it's likely that tax rules will change on earned income. Again, we suggest that you contact an accountant to establish the current rules.

Capital gained from selling your property

If you sell your property the entire sale proceeds can be remitted overseas. Tax is levied at 25% on the profits made from the sale of your property, i.e. on the difference between the purchase cost and the sale price achieved, less an indexation allowance and the cost of any improvements. The first CYP 10,000 is exempted and this increases to CYP 50,000 if the owner has resided in the property continuously for at least five years prior to disposal.