A Breakdown of the Cost of Living in Cyprus & Comparison

The cost of living in Cyprus is very affordable, especially compared to other countries in the EU and Europe. 

Let the island specialists at Property Experts Cyprus take you on a walkthrough of the most relevant costs and expenses of daily life in this Mediterranean country.

Living in Cyprus

With unparalleled beautiful beaches, central location, ample business opportunities, as well as prime healthcare, and attractive real estate options, Cyprus is a magnet for foreign HNWIs and retirees. 

Likewise, the local population enjoys a high-value education, sunny weather, delicious food, and an easygoing lifestyle.

The culture is easygoing and welcoming in general. As tourism is a main economic contributor in Cyprus, English is widely spoken. A few things to keep in mind

  • The currency used in Cyprus is the Euro (€).
  • Banks and drugstores are closed on Sundays and public holidays.
  • Beach access in Cyprus is typically free (rent for sun shades, etc. may apply).
  • As public transport is limited, a car is basically a must to get around.

So what does this mean in terms of average monthly expenses?

Cost of Living in Cyprus

Whether you do business on the island, work, are retired, or study – the cost of living in Cyprus is very affordable. Let’s take a look.

The latest Numbeo statistics reveal that despite Nicosia being the capital city and business hub, the cost of living (food, childcare, etc.) is only slightly above average. The cost of living in Limassol with its prime real estate and Larnaca with its new development projects is above island average.

Keep in mind that in line with global developments, Cyprus is experiencing increased inflation of 9% in 2022.

Average Monthly Expenses (Without Rent)

The cost of living for Paphos and Famagusta, the main holiday regions on the island, have not yet been published on Numbeo.

Generally, eating out in restaurants as well as alcohol (especially wine) is cheaper compared to many other European and international countries. Of course, as a prime tax optimization destination, Cyprus offers many incentives and reductions for businesses and entrepreneurs.

However, as Cyprus is an island, imported goods are relatively expensive. Besides, electricity is relatively pricey.

DistrictCost of living for a family of four (without rent)Cost of living for a single person (without rent)

Consumer Price Index in Cyprus 

Based on the official data from the Cypriot Statistical Service, we’re taking a look at the development of key expenses (general index, local goods, electricity and water, imported goods, rents, restaurants and coffee shops) between the years 2016 and 2021.

The consumer price index is given by economic origin and the base year is 2015 with a value of 100.

General Index

The general consumer price index started climbing in late 2020/early 2021.

Consumer Price Index in Cyprus - General Index - Cost of Living in Cyprus
Source: cystatdb.cystat.gov.cy

Local Goods

The consumer price index of local goods (e.g. cheese, vegetables, cement) has been gradually increasing over the last five years.

Consumer Price Index in Cyprus - Local Goods
Source: cystatdb.cystat.gov.cy

Electricity and Water

The consumer price index for electricity and water generally fluctuates but is experiencing a tendency toward increase from the end of 2020 onwards. In fact, since late 2021, Cyprus’ electricity prices are the third highest in the EU.

Consumer Price Index in Cyprus  - Electricity and Water - Cost of Living in Cyprus
Source: cystatdb.cystat.gov.cy

Cyprus basically only has oil as a local source of energy. Therefore, higher oil prices, inflation and taxes + EU fines for oil, lead to more expensive electricity and energy costs in Cyprus. Moreover, houses and apartments in Cyprus are not well insulated, and therefore require extra electricity for cooling (AC) in summer and heating in winter.

Energy Consumption by Source in Cyprus - Living in Cyprus
Source: OurWorldInData.org

Imported Goods

The consumer price index of imported goods displays seasonal fluctuations and has been gradually decreasing until mid-201, and is now rising since mid-2021. This is also due to the strong USD currency.

Consumer Price Index in Cyprus  - Imported Goods
Source: cystatdb.cystat.gov.cy


On average, the consumer price index of rents has been vastly increasing over the past five years.

Consumer Price Index in Cyprus - Rents
Source: cystatdb.cystat.gov.cy

Restaurants & Coffee Shops

The consumer price index for restaurant and coffee shop visits has been gradually increasing over the last five years.

Source: cystatdb.cystat.gov.cy

Average Monthly Rent

In terms of average rent per month, only Limassol with its luxury rental properties is above the average monthly rent in Cyprus. Take a look at Property Expert’s exclusive Cyprus real estate market report and analysis here).

City1-Bedroom Apartment 3-Bedroom Apartment 
Agia Napa510$1,020$

Tax Expenses

These are the applicable taxes in Cyprus:

Tax Type (if applicable)Tax Rate
Personal Income Tax20% – 35% with 19,500€ (~21,500$) p.a. tax-free (20%-50% tax breaks may apply)
Corporate Tax12.5%
VAT19%, with reductions
Municipality Tax0.1% – 0.2%

Average Monthly Income

In order to better understand the average monthly expenses required throughout Cyprus, let’s take a look at the average salary (after tax).

DistrictMonthly Net Salary (After Tax)

Now, let’s take a look at the cost of living in Cyprus compared to the home countries of the main immigration nationalities in Cyprus as well as other attractive investment immigration destinations in Europe.

Cost of Living: Comparison with Other Destinations

Out of Cyprus’ 1.2 million population, almost 200,000 are foreign nationals (16%). Among the main foreign nationalities are Israelis, British, Germans, Russians, and Chinese (including Hong Kong Chinese). While Israelis, Russian, and Chinese citizens typically invest in businesses and real estate, British and German nationals often retire in Cyprus or do business here.

For foreign investors, HNWIs, and retirees, the most popular European Golden Visa destinations (residency program) are Portugal, Greece, and Malta

Therefore, we will take a look at the cost of living in Cyprus compared with these aforementioned destinations. For a comparison of living cost indices between Cyprus, Greece, Portugal, and the UAE, click here.

Average Monthly Expenses (Without Rent)

Based on Numbeo, these are the average monthly expenses for living (food, childcare, transportation, etc.). For easier reading, the values have been rounded.

CountryFor a family of four (without rent)For a single person (without rent)
United Kingdom2,740$790$

Average Cost of Rent

Country1-Bedroom Apartment in the City Center3-Bedroom Apartment in the City Center
United Kingdom1,040$1,890$

Average Monthly Income

To put the average monthly expenses into context, let’s take a look at the average monthly net salary (after tax).

CountryMonthly Net Salary (After Tax)
United Kingdom2,680$

Cost of Living Index

To get an even better understanding of the cost of living in Cyprus in comparison to other destinations, we’re taking a look at the WorldData statistics, which compares 109 countries around the world.

Bermuda on rank 1 is the most expensive while Tajikistan on rank 109 is the least expensive. The cost index is compared to the USA (100). So, for example, in the UK, on average, goods of daily life are 7.5% more expensive compared to the USA. 

CountryCost Index
United Kingdom107.5

Tax Overview (Personal, Business)

You can find more detailed tax information, particularly related to real estate, in this article.

Cyprus offers many tax incentives for foreigners, for both individuals and businesses. These include non-dom tax residency and income tax breaks for new employees/residents in Cyprus.

CountryPersonal Income TaxCorporate Tax Rate
Cyprus0%-35% (19,500€ ~21,500$ tax-exempt per person per year)12.5%
Maltalocal income: 35%, foreign income: 15%35%
Germany0%-45% (10,000€ ~11,000$ tax-exempt) + solidarity surcharge15% + 15% trade tax
United Kingdom0%-45% (5,000 GBP ~6,500$ tax exempt)19%

This brings us to the end of the overview on living costs in Cyprus.

Cost of Living in Cyprus – The Takeaway

Overall, the cost of living in Cyprus is very affordable, in particular, compared to other European and EU countries. However, with global economic and political developments including inflation and the Covid-pandemic, the general consumer price index in Cyprus started rising in late 2020 (as in all mostly Western countries).

Compared with the home countries of the largest expat communities in Cyprus (Russia, China), Cyprus is slightly more expensive in terms of rent and monthly expenses, while it is significantly cheaper compared to the UK, Germany, and Israel.

Come join us in Cyprus! The real estate investment immigration route is quick and straightforward. Connect with the real estate specialists at Property Experts Cyprus for your FREE consultation.