There seems to be alot of people here who have gotten Cyprus confused with Germany.
Fuel is not tax free, car prices(new and second hand) are kept artificially high by thiefing salesman. Electrical goods are overpriced inside the wire so as not to flood the Republic with cheap goods courtisy of the Treaty of Establishment and just overpriced outside the wire.
Cyprus is a good tour but it is also a very expensive one. Being lucky enough to have been on squadrons in both Germany and Cyprus I can say that the LOA is very much needed there if not just to compensate for the racist rules concerning spouse employment (jobs have to be offered to locals first and then offered to dependants at a wage fixed below UK min wage).