UK Real Estate Agent Highlights Tax Advantages Of Cyprus

by Lorys Charalambous, Tax-News.com, Cyprus

16 October 2003

The tax and cost of living advantages for expatriates living in Cyprus have been highlighted by leading UK international estate agency Parador Properties, which recently opened an office in the Gulf city of Dubai.

"Cyprus has always been a popular destination with Gulf expatriates and has an ever increasing international appeal. Many people are now looking to purchase property for investment, for holiday homes or thinking further ahead, to retire there," Tim Landseer-Brooks, Parador Properties General Manager-UAE commented in an AME report.

"Quite simply, your money goes further in Cyprus," Landseer-Brooks observed, adding that the standard of living is high whilst the cost of living is relatively low compared to the rest of Europe.

Mr Landseer-Brooks went on to explain the tax advatages the island has to offer, particularly to British expatriates: "The Cypriot economy enjoys a comparatively low level of taxation. Many investors will be keen to note that Cyprus has a unique tax system that includes, for example, a double taxation treaty with the UK meaning that pensions can be received free of UK taxation."

He continued: "The total tax liability on many overseas residents of Cyprus can be as little as 3%. Foreign residents living in Cyprus pay income tax at a flat rate of only 5% above the CY£2,000 tax free threshold. Other major benefits are that real estate is excluded from VAT in Cyprus and inheritance tax has been abolished on the island, tremendous news indeed for long term financial planning."

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