Generally speaking, the cost of living in Cyprus is relatively high, when salaries and prices are taken into account. The large increase in fuel prices in recent years has led to a chain of increases in the prices of all products and services.

You can get an idea of prices from the prices charged in restaurants. The average restaurant charge is from €14 to €25 per person, inclusive of the drink.

Taxation

The rates of VAT vary according to the type of product or service on the basis of the legislation. The following rates are applicable:

• the zero rate (0%) food, medicines
• the reduced rate (5%) books, newspapers, shoes
• the reduced rate (8%) supply services, taxi fares, rural and tourist buses
• the standard rate (15%)

The delivery of a house, apartment or business premise, etc. for which planning permission was applied for after 1/5/2004 is subject to VAT at 15%. Plots and land are exempt from VAT when sold without any form of building.

Healthcare

Medical care is provided by the government medical services and the private medical sector. The government medical services can be used by anyone who chooses to be treated at a public medical institution.

The government medical services provide treatment free of charge or at reduced charges for certain groups of individuals. More information can be obtained from the Ministry of Health.

Emergency care is provided free to all persons who arrive at the accident and emergency departments of the government hospitals. Every city has its own hospital with an accident and emergency department

Persons who opt for the private sector pay the costs themselves.