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Moving To Cyprus - Movement Of Goods And Capital

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Information on the movement of capital and goods into Cyprus

Euros          Photo © CyprusExpat.co.uk

The free movement of goods through the European Single Market is one of the EU’s great success stories.
 
How does the single market work?

Most goods are subject to what is known as the ‘principle of mutual recognition’, which means that products legally manufactured in one Member State can be freely moved and sold in all the other EU countries.
 
Some trading restrictions remain in certain sensitive sectors, such as construction and pharmaceuticals. In addition, Member States can limit the free movement of goods to their domestic markets under certain circumstances relating to issues like protection of the environment or public health.
 
EU citizens are generally free to buy goods in other Member States for their personal use. In most circumstances there is no limit to what a person can buy and take with them when they travel into different EU countries. No more tax is payable when crossing between Member States because value added tax (VAT) and excise are included in the purchase price, meaning that other countries cannot levy extra duties.
 
However, there are some limitations for specific products, such as alcohol and tobacco. The Commission’s Taxation and Customs Union website provides a handy run-down of the rules for buying these goods in another EU Member State. Special rules also apply when buying a motor vehicle from one Member State and taking it to another for personal use.
 
Free movement of capital

Thanks to EU legislation, people are free to manage and invest their money in any Member State.
 
It is not just the financial markets that benefit from the free movement of money through increased efficiencies, every European citizen has something to gain.
 
With few restrictions, each individual is free to open a back account, buy shares, make investments and purchase property in other EU countries. What is more, EU businesses can invest in, own and manage other European companies.
 
Some exceptions to the free movement of capital apply within the Member States, mainly related to taxation, financial supervision, public policy considerations, money laundering and financial penalties.

Source European Union

Last Updated 19 October 2016

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