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.
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.
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.
|District||Cost 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.
The general consumer price index started climbing in late 2020/early 2021.
The consumer price index of local goods (e.g. cheese, vegetables, cement) has been gradually increasing over the last five years.
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.
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.
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.
On average, the consumer price index of rents has been vastly increasing over the past five years.
Restaurants & Coffee Shops
The consumer price index for restaurant and coffee shop visits has been gradually increasing over the last five years.
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).
|City||1-Bedroom Apartment||3-Bedroom Apartment|
These are the applicable taxes in Cyprus:
|Tax Type (if applicable)||Tax Rate|
|Personal Income Tax||20% – 35% with 19,500€ (~21,500$) p.a. tax-free (20%-50% tax breaks may apply)|
|VAT||19%, with reductions|
|Municipality Tax||0.1% – 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).
|District||Monthly 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.
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.
|Country||For a family of four (without rent)||For a single person (without rent)|
Average Cost of Rent
|Country||1-Bedroom Apartment in the City Center||3-Bedroom Apartment in the City Center|
Average Monthly Income
To put the average monthly expenses into context, let’s take a look at the average monthly net salary (after tax).
|Country||Monthly Net Salary (After Tax)|
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.
Tax Overview (Personal, Business)
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.
|Country||Personal Income Tax||Corporate Tax Rate|
|Cyprus||0%-35% (19,500€ ~21,500$ tax-exempt per person per year)||12.5%|
|Malta||local income: 35%, foreign income: 15%||35%|
|Germany||0%-45% (10,000€ ~11,000$ tax-exempt) + solidarity surcharge||15% + 15% trade tax|
|United Kingdom||0%-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.