The current tax regime is one of the most favourable in the European Union. Cyprus also has a number of double tax treaties, including with the UK, which allows very efficient tax planning for individuals and business alike.

Buying a property in Cyprus is a simple, quick, effective and secure process with legal safeguards for foreign investors. Contrary to the risks inherent in the purchase of the property in some countries, Cyprus has never been involved in the nationalisation of any sector of the economy, nor in the expropriation of property owned by foreigners. Indeed the Republic has often guaranteed foreign investments jointly and severally with local participants, consistent with its efforts to create a favourable climate for such investments.

Tax Advantages for Retirees

Compared with other international financial centres, Cyprus offers a distinct benefit in the form of double taxation treaties. In practice, the tax levied by one country is credited against the tax levied in the taxpayer's country of residence. Where different tax rates apply, the taxpayer will ultimately not pay more than the higher of the two rates of the respective countries. Cyprus also has very favourable tax rates for the retired expatriate:

As a working taxpayer the tax rates are as follows:

As a retired taxpayer you will have the choice to come under the working tax payers' band as above or the retired tax payers band as follows:

Amount of Pension Income	Tax Rate
CYP 0 to 2,000	0%
CYP 2,000+	5%

To be eligible for the Retirees tax bands you must not undertake paid employment of any kind.

UK citizens, having advised HM Inland Revenue of their change of residence, are able to have pension income and savings interest from the UK paid gross without the deduction of UK tax, and can be considered resident for tax purposes in Cyprus if residing here for 183 days or more in each tax year.

Download the article as it was posted by Mr. Antonis Loizou in Cyprus Weekly. "The cost of a building a house"