When you have gained a Residence permit (only if you intend to stay longer than 3 months), you will need to register at your local income tax office as a Cypriot taxpayer. Anyone who lives in Cyprus for more than 183 days in the financial year is required to pay tax on any income generated in Cyprus or from overseas. Saying that, you are not really taxed when earning under £12k Cyp P/A.

There are two separate tax schemes, one for employed people and the other for retirees. The progressive tax rates for working taxpayers are between 0% (for income of up to CY£10,000) and 30% (for income of CY£20,000 or more). If you are retired you will benefit from a favorable tax rate, with a maximum of 5% on any income of CY£2,000 or more. In order to qualify for this, retired people are not allowed to undertake any paid employment, like many other countries.

VAT at a rate of 10% used to be included in the price of all goods and services, except for certain items such as food, medicines and children’s clothes and shoes. This will change once Cyprus fully enters the EU.
Medical care is very good over here privately; however, just to visit the doctor will cost you £25.00 Cyp. And prescriptions are not cheap either. Therefore you may benefit from finding a temporary suitable medical cover, until you have entered employment. Off-Shore Company’s will provide a very good medical cover system but may exclude Dental practice (Which is under negotiations with employers at the moment).

One more thing in regards to this, if you intend to live on the North side (across the border), you may find yourself not eligible for a few options. You will also need a FULL visa and work permit as the Turkish side is not EU.

For those who have never been to Cyprus or are unfamiliar to it, here is a map:



For more information in regards to Cyprus, this press & information can be of help.
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