How to retire to Cyprus

•  A calmer lifestyle

If you’re looking to enjoy life at your own pace, Cyprus could be the place for you. Whether you want a blissful Mediterranean lifestyle chilling on a lilo, sailing with friends or for the more active retirees, there’s endless opportunities when it comes to hiking, cycling, swimming or even skiing. Cypriots have a relaxed approach to life, so if you want that holiday feeling year-round, you’ve come to the right place.

• Be rejuvenated by the sun

You’re in for a treat in Cyprus as the Mediterranean island enjoys between 320 and 340 days of sunshine each year. Warm weather is proven to be good for your health, especially for those with arthritis or respiratory conditions. Even better, the winter months are mild so you won’t need to hibernate during winter.

• History at every corner

Cyprus has been at the centre of global culture for thousands of years and offers history buffs (and anyone who loves a good yarn) endless fascination. From the rock from which Aphrodite is said to have risen from the ocean to the Greek temples and Roman amphitheatres, you won’t ever get tired of exploring Cyprus.

• New friends

Cyprus offers plenty of social opportunities to newcomers. You’ll find groups of all types and interests across the country and expatriates are encouraged to get involved. It can be a good way to keep fit and make friends. There are a range of hobbies to enjoy, from amateur dramatic societies to retiree walking groups, sailing clubs and ‘ladies that lunch’.

• Widely English-speaking

English is widely spoken across Cyprus due to the island’s colonial past and large population of British expats. Of course, that doesn’t mean the locals won’t appreciate you learning a bit if Greek when you get there.

Choosing the perfect location

Cyprus offers a variety of attractive locations for retirees, each with its own unique benefits and property styles. The island is renowned for its year-round sunshine and blend of beaches and mountains, providing an idyllic setting for retirement.

Limassol is a favourite among active retirees, known for its beautiful beaches and diverse property market. Here, one can find a two-bedroom house for approximately €150,000-200,000, or a two-bedroom apartment for €230,000-240,000. Bungalows with swimming pools are also popular, ranging from €220,000-240,000.

Paphos on the west coast of the island is celebrated for its relaxed Mediterranean lifestyle and breathtaking beaches. Property prices in Paphos start at €150,000, with two-bedroom villas with pools averaging around €270,000. Apartments can be more affordable, with prices between €75,000–100,000.

If you prefer the gentle breeze that comes with living slightly higher up, Lania is a great place to settle down. Located near the Troodos Mountains, this mountain village is picturesque and quaint. Lania is a popular wine village with lots of vineyards that are free to visit but also isn’t too far from the centre of Limassol. There you can attend classes, take up more sport-type activities, or experience urban living. Properties in Lania start from €100,000.

Paraklissa, also known as Pareklisia, is a tranquil village just minutes from Limassol, popular with British retirees seeking peace within easy access to city amenities. The area offers a serene village life with the convenience of nearby urban centres.

The average residential property price in Cyprus is just over €2,000 per square meter, making it one of the more affordable options in Europe. Property styles range from modern apartments in urban centres to traditional houses with thick stone walls and tiled roofs, often featuring courtyards or gardens.

Residency options for retirees

Passive income residence permit (Category F)

There is a passive-income visa that may be suited to retirees in Cyprus. It’s called the Category F residence permit (slow track) and is designed for those who don’t plan on working in Cyprus but can prove they have enough money to support themselves.

To be eligible for the Category F residence permit, you must:

• Show that you have at least €9,600 annual income, plus €4,6000 for reach dependent. This income must come from abroad and can be from a pension, rent, stocks, shares or dividends.
• Deposit between €15,000 and €20,000 in a Cypriot bank account

This permit covers the spouse of the applicant and dependents up to 18 years in age. Dependents lose residency permissions when they turn 18 years old.

The following conditions must be met:

• You cannot work in Cyprus but can become a shareholder in a Cypriot company and receive dividends.
• This permit does not grant you free-EU travel as it is only for Cyprus, Bulgaria and Romania.
• This permanent residency holder must personally visit Cyprus at least once every two years.

[H3] Golden visa (Category 6.2 fast track)

There is another option for retirees wishing to gain permanent residency in Cyprus that requires them to invest at least €300,000 + VAT in a new property in Cyprus. VAT is 19% or 5% for first-time buyers. It also requires you to have an income of at least €50,000, plus €15,000 for a spouse.

This residency route is typically quicker than the Category F residence permit (slow track) application and allows permit holders to bring family and dependents under 25 with them and benefit from free EU travel.

Financial considerations for retirees

With a fixed income from a pension – and Cyprus’ minimum income requirement for a visa – effective financial planning is crucial.

The good news is that the cost of living is relatively low in Cyprus. The bad news is that if your pension is paid from overseas, from a different currency, you will have to contend with moving exchange rates that make budgeting difficult. Speak to a currency specialist about ways to mitigate those changes, via a forward contract.

Also positively, for retirees from the UK, your pension will be upgraded according to the triple lock, just as in the UK.

Retirement age and eligibility

In Cyprus, the official retirement age is currently 65 years. However, you can retire to Cyprus at any time as long as you meet certain criteria. The income requirement for retirees is typically based on passive income sources, such as pensions or investments, rather than active employment.

Pensions, benefits and tax 

Here are some key points related to pensions, benefits, and taxes for retirees in Cyprus:

Pension Payments: Retirees from the UK, US, and other countries can receive their pensions in Cyprus. Coordinate with your pension provider to ensure smooth international transfers.

Taxation: Cyprus has a double taxation agreement with many countries, including the UK and the US. This agreement ensures that you won’t be taxed twice on the same income. Consult a tax advisor to understand your specific tax obligations.

Inheritance laws: Cyprus follows a system of “forced heirship”. A portion of your estate will automatically pass to your direct descendants (children) unless you have a valid will specifying otherwise.

Financial planning: Seek advice from a specialist lawyer and a financial advisor who understands the intricacies of retiring in Cyprus. Your financial advisor should be knowledgeable about EU regulations and be able to provide guidance tailored to your situation.

Healthcare for retirees in Cyprus

If you plan to live in Cyprus full-time, you’ll need access to its healthcare system for check-ups and treatments as well as emergencies. Cyprus has a top-quality healthcare system, so you can rest assured that you will receive a high standard of care in the country.

You will be required to show proof of healthcare cover before you apply for a visa or register as a resident. If you’re semi-retired in Cyprus, you will have to register with the Cyprus Social Insurance and pay healthcare contributions.

Once you’re a resident, you can fill out an online application to join the GHS or GeSY.

The Cyprus government is in the process of implementing a new healthcare scheme, aiming towards free or mostly free healthcare. In the meantime, it is important to be aware that you may still have to pay for things in Cyprus that you would usually get without charge in the UK. So, state-funded healthcare in Cyprus, known as either the General Healthcare System (GHS) or GeSY, is not free — but it is affordable.