HOW TO GUIDES

Our comprehensive guides provide essential information and advice to help you throughout your life as an expat.

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Business and Tax Issues


Banking

A Cypriot bank account should be kept open for a short period to settle final bills. Non-residents are still permitted to have bank accounts and some people may prefer to keep an account open.

As many banks employ English-speaking staff, closing an account or changing to a non-resident account should be fairly straightforward, though fees may be charged.

Internet banking is very popular and most functions can be completed online including transferring funds elsewhere and cancelling direct debits. Foreigners who are residents for tax purposes in Cyprus will have a percentage of interest on their bank accounts retained for tax (paid to the Ministry of Finance on their behalf). Speak to the bank about options for changing this (or moving to a non-resident account) before departure.

Remember that banks will retain part of the interest paid to foreigners who are residents of Cyprus for tax purposes. This is always recorded on the tax return and an accountant can advise if any refund is due following departure and/or change of residency status.

Credit card companies will also need to be notified of a new address for statements.

Tax

The tax year in Cyprus is 1 January to 31 December. Employees whose only source of income is their salary don't need to make an annual tax declaration. Upon termination of employment (and departure from Cyprus) there is no longer tax liability in the country.

As taxation is complex and individual circumstances vary, professional advice is suggested prior to departure and again on arrival in the new country of residence.