Commercial Banks in Cyprus offer mortgage facilities for purchase of Property in Cyprus both in foreign currency and in Cypriot currency. At least 20% contribution by the purchaser is required.

If you are a pensioner Cyprus has a wide network of Double-tax treaties.  If the country from which your pension originates is a country with which Cyprus has a double-tax treaty and you become a resident of Cyprus then you can get your pension gross (no deduction of tax) and pay tax in Cyprus at only 5% after the first €8,500.

Cyprus has conducted treaties for the avoidance of double taxation with the UK, USA, Yugoslavia, Sweden, Russia, Romania, Austria, Bulgaria, China, Canada, Czech Republic, Slovakia, Denmark, Greece, Germany, France, Hungary, Ireland, Italy, Kuwait, Norway and Poland.

 

For example, UK citizens may take advantage of the double Taxation treaty existing between the UK and Cyprus.  This enables you to receive your pensions and investments income in Cyprus FREE of UK 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.

Individual alien residents are now taxed on a flat basis of 5% per annum on pension and investment income brought into Cyprus.  In special circumstances exemptions totaling up to

€7,000 per person or €13,000 per married couple may apply.

A rough guide would be approximately €85 –  €250 per year depending on the value of your property.  This tax is for refuge collection, street lighting, sewage etc.