Cost of Living in Cyprus

The cost of living in Cyprus has been heavily affected by the country’s banking crisis, the measures imposed by the European Union in exchange for a bail-out loan and the country’s shrinking economy.

For decades, British pensioners have moved to Cyprus for its relatively low cost of living and favourable tax conditions, which, until recently, allowed their pensions to go further than they would in the UK. Unfortunately, many who kept their savings in Cyprus have lost significant amounts in the wake of the banking crisis. This adds to the financial problems of residents and many expats in Cyprus have less purchasing power.

While prices in Cyprus may be low for expats from strong economies, the cost of living is high in relation to the average Cypriot’s income. Many expats moving to Cyprus have savings deposited in their home countries.

The cost of living in Cyprus is fairly similar to other European countries. Nicosia is generally regarded to be the most expensive city on the island.

There are still compelling reasons to move to Cyprus, aside from the weather. The costs of accommodation, communications, education and healthcare are all fairly low and, for the most part, of good quality. On the other hand, the prices of consumables such as groceries and magazines are fairly high, while clothes are usually subject to import taxes, driving up their prices.

Southern Cyprus tends to be more expensive than the Turkish-occupied northern part of the country, especially in terms of rent, but its economy is around five times the size. Most expats prefer living in the south because it generally has better job prospects and higher salaries.

Cost of food in Cyprus

Groceries in Cyprus tend to be cheaper than in the UK, especially when it comes to fruit and meat. Beer and cigarettes also tend to be cheaper, while cappuccinos are more expensive. Restaurants are generally cheaper as well; although, if expats opt for smaller, local establishments they will be able to save quite significantly and sample some of the fine cuisine on offer in Cyprus, which is a cosmopolitan blend of Greek, European and Middle Eastern cooking.

Cost of transportation in Cyprus

There hasn’t been a rail network in Cyprus since 1951, but Cypriots have been told they’ll once again have access to intercity trains in the next 15 years. Buses are available and are fairly inexpensive. Unfortunately, they are not always reliable and routes can be limited, so many people opt for private taxis.