Cost of Living
In addition to the low cost of utilities, there are many items much cheaper than other European countries, and Cyprus regularly appears in the Union Bank of Switzerland survey on prices and earnings as one of the top three least expensive countries for goods and services.

A recent survey of all European Community countries ranked Cyprus fifth highest in standard of living.

Taxation
Cyprus is unique when it comes to the taxation aspects of living on the island.

The following income tax rates apply to individuals:

Retirement
Retirees who become residents in Cyprus are taxed on their pensions at the rate of 5% per annum, while an exemption of the first 3,500€ is granted.

Cyprus has a Double Taxation Treaty with over 40 countries including UK, safeguarding residents from paying tax in both countries.