Banking

Banking in Cyprus closely follows the British system and is well developed and organized. The banks have branches conveniently located throughout the towns and offer efficient service in modern surrounding, equipped with the latest technology. Many Cypriot Banks have branches throughout the world and International Banks also have branches throughout the island for the convenience of their customers.

The Cyprus currency system is based on the decimal system, with the Cyprus Pound made up of 100 cents. Coins range in value from the half cent to 50 cents and there are 4 bank notes: CYP1, CYP5, CYP10 and CYP20. The exchange rate in relation to other currencies is issued daily by the central bank. Cyprus will of course change over to the Euro in due course, after becoming a full EU Member State in May 2004. There are both domestic and foreign banks within Cyprus all operating to an international standard , offering a range of services, from investment, hire purchase to mortgage facilities. Banks are normally open between 8.30-12.30pm Monday to Friday.

Bank Accounts

EU citizens can easily assess a foreign currency account as well as local deposit account or you can open an account with a Local or International bank operating in Cyrus. Internet banking is also available and in this way manage and operate your account from the comfort of your home country.

Non EU citizens: can open an account with a Local bank or International Bank in your country of residence

Credit cards: Most major cards are accepted and used in Cyprus such as Visa, American Express, Diners club and Master Card.

Business

Strong bonds with other countries in facilities and trade.

International Relations

Cyprus is a member of the United Nations, Council of Europe, British Commonwealth, a member of the Non-Aligned Movement, the World Bank and I.M.F and from 1 May 2004, a full Member of the European Union.

Language

Although the local population is Greek speaking. Over 85% of the populations speak English. It is also useful to note that all street signs, direction signs, shop signs etc. are written in English. Knowledge of German, French, Russian and other European languages is increasing with the Island's rapid growth in tourism.

Legal System

Based mainly on the Anglo-Saxon legal system. The Land Registry Department in Cyprus is one of the most advanced and reliable system in the world. (Government correspondence can also be provided in English and all contracts and other legal paper work are produced in English).

Residency & Residence Permits

Temporary Resident Permits are easily obtained for persons living in Cyprus, who have purchased property. You can apply for a limited visa and after 6 months of residing in the country, you can apply for residency. Granting of this permit requires the existence of an external bank that has a branch in Cyprus, plus other relevant documentation. Temporary residence status can be from one to four years.

Recreation and Nightlife

The island has a cosmopolitan environment and entertaining/eating out is inexpensive. There are clubs and bars for all ages varying from discoteques to live music all of the major towns and most of the larger villages. There is every type of sports activities (land and sea), yachting marinas, golf courses and snow skiing.

Taxes

Cyprus is unique when it comes to the taxation aspects of living on the island. Cyprus has conducted treaties for the avoidance of double taxation with Austria, Bulgaria, Canada, China, Czech Republic, Slovakia, Denmark, France, Germany, Greece, Hungary, Ireland, Italy, Kuwait, Norway, Poland, Romania, Russia, Sweden, U.K, USA and Yugoslavia. Furthermore there are negotiations for the ramification of treaties with Egypt, Malta, Syria, Belgium, Finland and the countries comprising the Commonwealth of Independent States. The main purpose of these treaties is the avoidance of double taxation of income earned in any of these countries.

For example, United Kingdom citizens may take advantage of the Double Taxation Treaty existing between the U.K. and Cyprus. This enables you to receive your pensions and investment income in Cyprus FREE of U.K. withholding tax. This Treaty is unique to Cyprus since it includes both public and private sector pensions.

Furthermore, Cyprus taxes the assets of expatriates only on a remittance basis. Many expatriates can, therefore, keep assets growing free of tax in an offshore bank, investments or trust, and simply bring into Cyprus what they need. The remittance system compares extremely well with the more common world-arising tax system, used in many other countries, including favoured sunspots like Spain. Recent tax reforms sharply reduce the tax burden for alien residents, in recognition of their value to the economy.

Individual alien residents are now taxed on a flat basis of 5% per annum on pension and investment income brought into Cyprus, (as opposed to 20% in the UK). In special circumstances exemptions totalling up to CYP4,000 per person or CYPP8,000 per married couple may apply. This compares with competing destinations where property owners are subject to high tax exposure levels of up to 60%.

Insurance pensions can be paid to retirees in Cyprus on a similar tax free basis, and are index-linked by virtue of the Reciprocal Agreement, compared to their "frozen" status in other overseas destinations.

According to the tax system you are obliged to declare your income from pension or any other sources to tax authorities. There are two groups of taxed income, as follows: Those that have income from sources, other than pensions, derived outside of Cyprus, are entitled to pay 5% income tax with the first CYP2,000 (two thousand pounds) being exempt. Those that have income from their pension are entitled to pay 5% income tax, the first CYP6,000 (six thousand pounds) is exempt