Taxation and Property Ownership in Cyprus

A homeowner living in Cyprus for five years can acquire the right to obtain a Cyprus passport. An acquisition of Cyprus property gives an automatic right to reside in the island. This is unique to Cyprus, unlike other member countries of the E.U.

• Cyprus VAT currently stands at 15% (on the lower side of most EU countries)
   
• Import of foreign income of any person derived by way of interest on
  foreign capital imported into Cyprus and deposited with any account in
  Cyprus is exempt from tax.
   

• Pensions obtained outside Cyprus, which are received in Cyprus, are
  liable to Cyprus tax at a maximum of 5% per cent on the excess of
  EUR 10,250 per person. A couple is therefore allowed EUR 20,503 tax-free.