Expensive Electronics

[Vegaanders]

Hi All!
Reading through all threads gives a lot of useful info but also create some questions. One of them is about expensive electronic thinhs like hairdryer mixer etc. Does anyone know why its like this? Cyprus is in the EU and also have a low VAT, so it should be the other way around

Regards
Anders

[Veronica]

Originally Posted by Vegaanders

Hi All!
Reading through all threads gives a lot of useful info but also create some questions. One of them is about expensive electronic thinhs like hairdryer mixer etc. Does anyone know why its like this? Cyprus is in the EU and also have a low VAT, so it should be the other way around

Regards
Anders

I think that it is mostly the fact that the british pound is so weak agaisnt the euro that anything in euros seems so much more expensive. If you shop around you can find better prices for things.
In the Uk there are a lot of electrical discount stores which tend to force prices down and there don't seem to be any stores like that here so no competition to force prices down.
In my experience, yes prices are higher but not prohibitively so and if you are happy to buy Greek or spanish manufactured electrical goods then the prices are actually not bad. The only thing with these is they often have 2 pin plugs but that is no problem as you can use adaptors.

[theresoon]

Hi Anders,

Firstly, I wouldn't call 15% VAT low. Now here is my personal analysis of the Cyprus market from my 10 months experience that I have been here. The market is very small compared to most countries and being an island there is only one way to ship - sea freight. The cost for this is very high. Because of the high cost to bring things in, a very small number of companies control the market and so they keep their prices as high as possible as people are forced to buy from them. These companies make enormous profits, especially if it's one of those who owns a lot of land and builds it's own stores and malls everywhere. This is not only the electrics but pretty much everything here.

[Vegaanders]

Originally Posted by theresoon

Hi Anders,

Firstly, I wouldn't call 15% VAT low. Now here is my personal analysis of the Cyprus market from my 10 months experience that I have been here. The market is very small compared to most countries and being an island there is only one way to ship - sea freight. The cost for this is very high. Because of the high cost to bring things in, a very small number of companies control the market and so they keep their prices as high as possible as people are forced to buy from them. These companies make enormous profits, especially if it's one of those who owns a lot of land and builds it's own stores and malls everywhere. This is not only the electrics but pretty much everything here.

Hi!
Comparing with the rest of EU the VAT must be considered low. I am Swede and in Sweden VAT is 25%. I live in Germany where VAT is 19%.

Its true that costs of transport is high and market is small.

Is this also the reason for the prices on used cars? Or has it more to do with the demand for Right hand Drive?. I found a webpage selling cars in Cyprus where cars that cost 700 euro in Germany cost 7000 in Cyprus. ???

Regards

Anders

[Veronica]

Originally Posted by theresoon

Hi Anders,

Firstly, I wouldn't call 15% VAT low. Now here is my personal analysis of the Cyprus market from my 10 months experience that I have been here. The market is very small compared to most countries and being an island there is only one way to ship - sea freight. The cost for this is very high. Because of the high cost to bring things in, a very small number of companies control the market and so they keep their prices as high as possible as people are forced to buy from them. These companies make enormous profits, especially if it's one of those who owns a lot of land and builds it's own stores and malls everywhere. This is not only the electrics but pretty much everything here.

I agree with you on some things theresoon but having been here for 5 years I have found that if you do your homework and shop around you CAN find less expensive products. Notice I do not say cheaper, I say less expensive.
Many people have the blinkered way of wanting known brand names and these are more expensive here than the Uk but how many of them would buy Balay instead of Bosch? Balay is much cheaper but is in fact made in the Bosch factory in Spain. So it is basically the same stuff.
Ok I agree that on the whole prices are higher but do your homework and they are not nearly as bad as many people think. Also because of the savings you make in many other areas this is still a far better and less expensive place to live than the UK.

[teandto]

If you can bring things with you then do.

I bought over with me a hand blender which I bought in Tesco for £3.97. (tesco value brand) in Orphanides here they have all the usual brands and some european brands but the cheapest was €29!

[Vegaanders]

Originally Posted by teandto

If you can bring things with you then do.

I bought over with me a hand blender which I bought in Tesco for £3.97. (tesco value brand) in Orphanides here they have all the usual brands and some european brands but the cheapest was €29!

Hi!
Yes we will bring most what we need. And our plans are to stay in Germany the 2 hottest month every year so we can bring.

Anders

[theresoon]

Balay instead of Bosch

I'm glad you brought this up Veronica as I was wondering if there is anything like the European version of Consumer Reports?

I believe when Lidl opens next year prices will fall somewhat and people will have a choice.

Comparing with the rest of EU the VAT must be considered low. I am Swede and in Sweden VAT is 25%. I live in Germany where VAT is 19%.

Yes Andres, you are right of course that 15% VAT is lower than 25% or 19%. But I have moved here from NYC where sales tax is 8.5% and one of the highest in the US. I also think it's absurd to be paying VAT on diapers and other baby necessities at the full 15% in a country that says htey want population growth.

[Vegaanders]

Originally Posted by theresoon

Balay instead of Bosch

I'm glad you brought this up Veronica as I was wondering if there is anything like the European version of Consumer Reports?

I believe when Lidl opens next year prices will fall somewhat and people will have a choice.

Comparing with the rest of EU the VAT must be considered low. I am Swede and in Sweden VAT is 25%. I live in Germany where VAT is 19%.

Yes Andres, you are right of course that 15% VAT is lower than 25% or 19%. But I have moved here from NYC where sales tax is 8.5% and one of the highest in the US. I also think it's absurd to be paying VAT on diapers and other baby necessities at the full 15% in a country that says htey want population growth.

I dont think Cyprus has much choise really. Has to do with EU regulations. But ofc the level is high

Anders