Retiring to Cyprus
A home within The Grove Spa Resort is the perfect lifestyle choice for anyone seeking to make the most of their retirement. Free from the daily routine of work, the on-site facilities provide the perfect environment in which to enjoy a more relaxed style of living.
Relocating to foreign climes is a big step for anyone, regardless of age, but there are a whole host of reasons why Cyprus remains on one the most popular European destinations for retirement: the favourable tax system means pensions stretch that much further, a thriving expat community and friendly locals means you can enjoy a vibrant & varied social life, first class healthcare is available, and the island is well-connected by international airlines, meaning friends and family are within easy reach.
In addition to the information on living in Cyprus, specific considerations for ex-patriot retirees is given here: TaxOne of the key attractions that tempts retirees to Cyprus is the low rate of 5% income tax levied on pension income. Retirees have two options when it comes being assessed for income tax; you can either choose the working tax payer’s band, shown below:
Income Tax Rate
€0 – €19,500 - 0%
€19,501 – €28,000 - 20%
€28,001 – €36,300 - 25%
€36301 – 59,999 - 30%
€60,000+ (from 1 January 2011) - 35%
Alternatively, choose assessment under the retired tax payers band, which is as follows:
Pension Income Tax Rate
€0 – €3,420 - 0%
€3,420+ – 5%
The income tax rate is the best option for retirees on relatively modest incomes of less than €19,500. Individuals with a total income higher than this figure should opt for the Pension Income Tax rate. * It should be noted, however, that to benefit from the double tax scheme, ex-pats need to comply with the terms of Cypriot residency, namely that they spend at least 183 days per financial year living on the island.
In accordance with EU legislation, non-Cypriot retirees are afforded the same welfare benefits as retired Cypriots. Upon taking up residency in the country and registering your status, it is necessary to complete an S1 form (formerly an E121 form) to enable you to access all available free treatments. These need to be obtained from the state healthcare provider in your home country and submitted to the authorities in Cyprus.
Further information can be found here. Retirees from non-EU nations should carefully consider the level of healthcare cover that is suitable for their needs and arrange private medical insurance prior to relocating to the island or upon their arrival. Further, more general information on ‘Healthcare in Cyprus’ can be found on our website here.