It is easy for one to realise why Cyprus is considered to be one of the best places to retire in. The unbeatable weather, lifestyle, and safe culture, in combination with the low pension tax and investment opportunities, make it one of the most beneficial and comfortable retirement destinations in the world. Our team at E. Tzioni & Associates LLC, which specialises in immigration and citizenship law, always makes sure to provide clients with the most detailed information and relevant advice possible in relation to their benefits when relocating to Cyprus for their retirement. Denoted below, are only a few reasons why we believe Cyprus is the ultimate retirement location for every immigrant.
1. Extremely favourable Income Tax in Cyprus
Tax considerations are of the most important considerations made by anyone moving abroad for their retirement. As such, Cyprus regulations provide potential incoming foreign retirees with two tax sensitive options for them to pick from.
First and foremost, the one option is that pension income generated from outside Cyprus is only taxed at 5% and only on income exceeding €3.420 annually. This means that pension income which is less than €3.420 will not be taxable at all in Cyprus.
The second option is one which one can potentially opt-into if this is the more beneficial tax option for that individual. This option is for retiring immigrants choosing for their income to be taxed at the normal rates of the Cyprus income tax regime. In such case:
- The taxpayer who opts for normal income tax rates will enjoy tax free income for chargeable income up to €19,500.
- For chargeable income of €19,501 – €28,000, the taxpayer will be liable to pay 20% tax on that income.
- The next tax bracket is that of €28,001 – €36,300 taxed at 25% and the final bracket is from €36,301 – €60,000 and taxed at 30%.
- Any income at €60,001 and over will be taxed at 35%.
Last but not least, considering that Cyprus has double tax treaties with more than sixty countries in the world, a retiring individual's pension or income will never be double taxed if their home country is included in one of these treaties.
2. Easy Lifestyle, Security & Healthcare
Other than its favourable tax regime, Cyprus is of course well known for sun, sea and relaxation. In fact, Cyprus receives 300 to 340 sunny days per year and has over 150 registered beaches. Additionally, Cyprus's infrastructure has extremely developed over the last three decades to become one of the most appealing infrastructures for retiring individuals from all across the world. From its great road networks to the short commutes, either by bus or car, the island makes it easy and efficient for retirees to gain access to the services and goods they may require.
But apart from that, the island is just as well known for its safety and security. The use of or dealing of drugs, violent attacks, theft/robbery and vandalisms have always been at lower rates in Cyprus. In fact, it is considered extremely safe to walk alone, for any gender or race, during both day and night and in any city or area of the island. The overall risk is considered very low and therefore people feel safe to relocate in the island.
For instance, according to Europa.eu during the period of 2017 – 2019, Cyprus recorded on average only 8,9 police recorded offences per one hundred thousand inhabitants. This is one of the lowest number of offences across the European Union and it is well below the European Union average of 52,5 police recorded offences per one hundred thousand inhabitants, that was recorded over the same period.1
Moreover, from March 2019, the Cyprus government has put into effect the amendment of the General Healthcare System Law of 2001 (N.89(I)/2001) (GHS). The amendment ensures the provision of equal and extremely affordable access to health care services for people residing in the island. Therefore, pensioners who choose to pay the required contribution of 2.65% off their pension will enjoy free healthcare services from health professionals and hospital institutions who are contracted with GHS. It is noteworthy that GHS contributions will be 2.65% of income but capped at €180,000 of income annually.
Finally, it should be noted that English, as a language, is being taught in all public schools and to all students. As such, English is very well spoken by nationals of all ages and professions, throughout the whole island.
3. Investment Opportunities for Immigrants.
There are countless investment opportunities in Cyprus that one could take advantage of. The construction industry in Cyprus has become one of the most developed industries in the island, and as such, real estate investments have become the most prominent type of investment amongst foreign individuals. The benefits from investing in Cyprus property are numerous and therefore a lot of Cyprus retirees choose to enhance their savings' value by investing in that sector.
Especially for British nationals, buying a property in the United Kingdom is not a simple task. To take the decision is, of course, very easy. The implementation of such a purchase, on the other hand, is not easy at all. According to the UK Government statistics, an average purchase price of a property in the England is approximately £300.000.2 This amounts to about €360,000. When looking at London, the prices become even more extreme. Property prices range at about £520,000 and renting a decent property in London will cost you around £1750 per month.3 Therefore, when you compare these prices to what can be bought for much cheaper in Cyprus it is easy to realise how ideal the island is for someone looking to purchase their retiring home.
What is even more promising, is the fact that immigrants wishing to retire in the island and invest in property, valued over €300,000, are eligible for Cyprus residency permit not only for themselves but also their family members.
All and all, the above are only a couple of the countless benefits that Cyprus has to offer to every incoming foreign retiree. The plethora of foreign individuals choosing to retire in Cyprus over the last couple of decades, is clear proof of the island's fitness to be a host for even more retiring individuals in the present and future.
If you are thinking of retiring in Cyprus, and your want to make sure that your pension and lifetime savings will continue to have value, consider contacting our immigration team at E. Tzioni & Associates LLC. Our team will make sure to inform you of every benefit, opportunity and right you are entitled to when retiring in Cyprus. We will give you the ultimate guide on how to facilitate your retirement in Cyprus and how to optimise your retirement plan.
1 Europa.eu, ‘Crime Statistics', Available at https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Crime_statistics Accessed 20 May 2022.
2 Office for National Statistics, ‘UK House Price Index: February 2022', available at UK House Price Index - Office for National Statistics (ons.gov.uk) accessed 21 May 2022.
3 Statista.com, ‘Average monthly rent in the United Kingdom (UK) December 2021, by region', available at https://www.statista.com/statistics/752203/average-cost-of-rent-by-region-uk/ accessed 20 May 2022.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.