How much does it cost to live in Cyprus?

What you need to know before relocating

Cyprus is a good place to run a business, thanks to a comfortable tax burden - corporate income tax in Cyprus is 12.5%. It's also comfortable for those who earn income outside the island, because the Republic has signed double taxation treaties with many countries, allowing tax optimization and simplified reporting. Such a treaty is also in effect with Russia. However, finding work within Cyprus itself is difficult.

The official languages of Cyprus are Greek and Turkish, but you don't need to know them - English is enough. In some cities, Limassol for example, large Russian-speaking communities have historically formed, so you won't have trouble finding people to talk to in your native language.

Russians need a visa to enter the Republic of Cyprus. Although Cyprus is a member of the European Union, it is not part of the Schengen area, so a Cyprus visa does not grant the right to cross the borders of those countries. However, you can enter Cyprus using a multiple-entry visa from any Schengen country, Romania, or Bulgaria.

Employment and salaries

Local authorities do not actively promote the employment of foreign nationals. When vacancies are available, they can be filled by local citizens, then by those with residency status, then by those with a residence permit - in that order. Everyone else gets a job only if no one else applies for it. Applicants also have to go through several bureaucratic procedures, so employment can take several months.

The average salary in Cyprus in 2023 is around 2,100 euros a month before tax, and it varies by sector. The average salary is highest in finance and insurance (around 3,500 euros a month), mining and energy (around 3,000 euros a month), while the lowest average salary is in food service and accommodation (a little over 1,000 euros a month).

Housing

To obtain a residence permit or residency, you need to buy or rent housing in Cyprus. This is a mandatory condition. Note that renting is also acceptable - buying a house or apartment is not required.

Mentality

Roughly 78% of Cyprus's population is Greek Cypriot. The next largest ethnic group is Turkish. According to UN estimates, up to 16% of the island's population were immigrants in 2019, with Russians occupying a notable place among them, then and now.

Cyprus is safe at any time of day, and there is practically no need for security. On the island, there's no need to worry about your safety or that of your children, because Cypriots are very friendly, welcoming and open - they live with their doors open.

Standard of living

The standard of living in Cyprus is roughly comparable to many other Southern European countries. Tourism plays an important role in the economy, so much of the country is geared toward visitors with medium and high incomes.

The cost of living in Cyprus is somewhat higher than in many European countries. Though Russians relocating from Moscow or Saint Petersburg won't notice a significant difference. A lot also depends on where you eat - at cafes and restaurants, or cooking at home. Many food establishments cater primarily to tourists, and their prices can seem quite high.

The tax system in Cyprus

Cyprus offers comfortable conditions in terms of tax rates, benefits, and obtaining tax resident status.

The main taxes for individuals are income tax, social insurance fund contributions (8.3%), and contributions to the general healthcare system.

The income tax scale:

• from 0 to 19,500 euros a year - 0%;
• from 19,500 to 28,000 euros a year - 20%;
• from 28,000 to 36,300 euros a year - 25%;
• from 36,300 to 60,000 euros a year - 30%;
• above 60,000 euros a year - 35%.

The main taxes for legal entities:

• income tax - 12.5%, considered the lowest in the European Union;
• VAT - charged on the supply of goods and provision of services in Cyprus, on the purchase of goods from EU countries, and on the import of goods into Cyprus. The standard rate is 19%. Some goods and services are exempt from VAT - this includes renting out residential property and certain banking, financial, insurance and medical services;
• capital gains tax - applies only to real estate transactions involving property owned by a company (rental, leasing, sale) and amounts to 20% of the profit;
• defence tax - levied on certain types of income from Cyprus sources for both legal entities and individuals, ranging from 3% to 30% depending on the type of income.

For example, interest income received by a company unrelated to its main activity is taxed at 30%; dividends received from a company that is not a Cyprus resident (where the tax rate in the country of the company paying the dividends is lower than the Cyprus tax rate) are taxed at 17%; rental income is taxed at 3%. Non-residents are in most cases not liable for this tax.

A double taxation treaty between Russia and Cyprus has been in effect since 2020. It gives business owners the ability to optimize costs and choose the most favorable conditions for running a business and filing reports.

Prices in Cyprus

When relocating to another country, the question of prices is one of the first to come up. How much do groceries cost? What rental prices can you expect? How much will transport, entertainment, and children's education cost? Let's look at this in more detail.

Real estate

You can either buy or rent housing.

At first glance, renting residential property seems like the more cost-effective option. But apartments in Cyprus are not cheap. A one-bedroom apartment in central Limassol will cost 1,380 euros a month. On the outskirts, housing costs less - around 1,000 euros a month. If you need an apartment with two or three bedrooms, be prepared to pay twice as much. And don't forget about utilities, which add another 200-400 euros each month.

Buying residential property has a number of undeniable advantages:

• anyone who owns their own home in Cyprus finds it easier to obtain a residence permit;
• if the property's value exceeds 300,000 euros, residency can be obtained through an accelerated procedure, bypassing the residence permit stage;
• it's simply a good investment - even if you decide to leave Cyprus, the property can be sold or rented out.

If you want to save money, buy housing outside the popular resort towns. On the secondary market, small apartments can be purchased for 30,000-40,000 euros.

Education

Options are available for children and teenagers of various ages.

Kindergartens cost 45-150 euros, with the price largely depending on whether you leave your child there for the full day or just half a day.

Children start school at age 5, and education lasts 12 years. Education at public schools is free.

Higher education is fee-paying, usually costing from 7,000 to 10,000 euros a year. Diplomas from Cypriot universities are recognized throughout the European Union.

Grocery prices

Food prices can vary between locations. In addition, what is produced in Cyprus is cheaper, while imported goods cost more. How much does a monthly grocery basket cost? Around 200 euros on average. In other words, the average salary allows for good eating.

Approximate prices for particularly popular products:

• white bread - 1.4 euros per loaf;
• milk - 1.5 euros per liter;
• cheese - from 3 to 15 euros per kilogram, depending on the variety;
• tea - 3 euros per 200-gram pack;
• onions - 0.8 euros per kilogram;
• apples - 1.8 euros per kilogram;
• oranges - 1.9 euros per kilogram;
• beef - 7 euros per kilogram.

Clothing and entertainment

Cyprus shops carry clothing and footwear from all the world's major brands. You can find both mass-market and premium-segment items. Average shop prices are roughly as follows:

• summer dress - 35 euros;
• shorts - 15 euros;
• sweater - 25 euros;
• jeans - 70 euros;
• sneakers - 70 euros.

A cinema ticket costs 8 euros. A visit to a bathhouse or sauna costs 20 euros, and a monthly gym membership costs 50 euros.

Transport

Public transport is well developed in Cyprus, and you can get to almost any point on the island by bus. A single ticket costs 1.5 euros, and a monthly pass can be bought for 37.5 euros. Average taxi prices are 4 euros for pickup plus 1.1 euros per kilometer.

Car rental is also well developed on the island. You can rent a car for 15-90 euros a day, depending on the type of vehicle and transmission. Fuel prices are roughly the same as in other European countries.

Healthcare

Another important question is how much a doctor's visit costs. The cost of medical services in Cyprus is roughly comparable to similar figures in Moscow or Saint Petersburg. A doctor's visit costs around 40 euros, and a day in hospital costs 150 euros plus the cost of medicines and procedures. Giving birth can cost from 2,000 to 5,000 euros.

Health insurance, which costs an average of 200 euros a year per person, covers 100% of the cost of tests, procedures and hospitalization. It must be taken out if you want to obtain residency. However, standard insurance does not cover dental services. Tooth extraction costs 40-70 euros. An implant costs around 800 euros.