BANKS

Like many things in Cyprus the banking system is modelled on the British system so you'll find many things familiar. However, you'll soon notice that there are plenty of branches, few queues and excellent service at all times which comes as something of a shock!

The main domestic and foreign banks include Cyprus Popular Bank, Bank of Cyprus, Hellenic Bank, Arab Bank, Nat West and Barclays. As an 'Alien' you'll be required to have an 'external' account with funds credited from abroad (i.e. transferred from the UK).

After opening an account and depositing funds you can have a debit card in just a few days. Most banks have 24 hour banking facilities (i.e. a cash machine) for withdrawing money and all major credit cards are widely used in Cyprus.

TAXES

V.A.T. - Cyprus has VAT which has been increased recently from 10% to 15% to bring the country in line with the EC. However, unlike other European countries some other were actually reduced to compensate the electorate!

SOCIAL SECURITY TAXES - are payable from all those who work as employees or self-employed in Cyprus. They provide Benefits such as Healthcare, Retirement, Maternity and Disability. All compulsory Social Security contributions are Tax deductible.

INCOME TAX - in Cyprus is unique with regard to the taxation of those living there. Many expatriates can keep assets free of tax in an offshore bank and just transfer to Cyprus what is needed for day to day expenses.

Your liability for taxes in Cyprus depends on where you live most of the year, a person who spends over 183 days in any calendar in Cyprus or who has a home there, is usually considered a resident. However, if your income doesn't exceed C£5,000 p.a. you are not required to file a Tax Return.