Cyprus has become a fast-growing relocation spot since Covid, with tax and affordability high on the agenda of those making the move.
Its Anglo-friendly culture, climate and high quality of life are all big attractions.
A slow, relaxed island lifestyle and access to good healthcare (which can be virtually free – read on to see how) are also key reasons why some people make the move – and here we have crunched some numbers to help you decide.
How much does property cost in Cyprus?
House prices in Cyprus have been rising but your pound still buys a lot of bang for your buck – more so than in the French Riviera or the Costa del Sol.
British buyers typically spend €150,000 to €350,000, but you can still find apartments for less than €100k if you have a canny estate agent – and look away from the coast. A two-bedroom villa in the Paphos area might be found from around €225,000 upwards.
But the average mover seeks a three-bedroom villa with a private swimming pool, and you will find that from around €250,000 upwards – especially in the Famagusta area.
The average cost of a home in the UK is just under £300,000 but in the southeast it’s £380,000 to £442,000, according to the ONS, and that buys a rather nice detached villa with sea views in Cyprus.
On second-hand properties, tiered transfer tax is payable – allow around €5,000 in total for buying costs, including legal fees, on a property worth €300,000.
How much does a Cyprus residency permit cost?
Unless you have an EU passport – or a spouse with one – you will need to pay to get a visa. Most retirees in Cyprus will apply for a Pink Slip – a temporary residence permit – which can be renewed after one year.
You must show that you have €10,000 in a bank account and enough income to cover living expenses – around €2,000 per month, plus another 20% for a spouse. If you have bought a property, immigration will take this into account on the income side as you won’t be paying rent.
You can rent or own a property and have private medical insurance unless you are of UK state pension age (see healthcare below).
Unlike some other countries, you can apply for a residency permit at the immigration department of the district where you are living. It costs around €1,000 per person if you are paying for private healthcare cover (under state pension age).
Alternatively, there is the Category 6.2 visa (also known as the Fast Track visa), which requires the purchase of a new-build property for at least €300,000 + VAT, but you do need to show relatively high income: €50,000 per year for the main applicant and another €15,000 for the spouse.
Find out more about RESIDENCY in CYPRUS
How much does healthcare cost in Cyprus?
The affordability of Cypriot healthcare is a big incentive for retirees. Those of UK state pension age can access the Cypriot General Health System (GESY), which is of a high standard. They do this by getting an S1 Certificate from the NHS in the UK, although those who are permanent residents and pay social security can access GESY without this.
For all residents there are small charges (co-payments) for prescriptions and GP visits. These can be surprisingly low: €6–10 to see a specialist, €10 for an MRI scan. Residents also get a free dental check-up and clean each year.
Find out more about healthcare in CYPRUS
What is the cost of living in Cyprus?
The cost of living in Cyprus is 16% lower than the UK, according to numbeo.com, but the average net salary is lower – around £1,473 per month. The average rent for a one-bedroom apartment outside a city is around £619 per month.
Affordability is rather a mixed picture: rents are generally lower, medical costs are much lower (see healthcare above) and eating and drinking outside the tourist hotspots can be very affordable – as little as €10 per person for lunch in a village behind the coast, or €2.50 for a pint of beer.
But island life has its downsides: imported goods are similarly priced to those in the UK, or even more expensive – especially importing your car to Cyprus.
Whilst annual council taxes and water bills are much lower in Cyprus than in the UK, electricity bills are high (although solar panels can produce big savings).
What are the tax benefits of retiring to Cyprus?
You will need to consider how you will be taxed in Cyprus. Once you become resident there you will be subject to Cypriot tax rates.
Cyprus is a relatively low-tax environment for individuals, entrepreneurs but also retirees.
For 2026, Cyprus has changed its tax rates to make pension taxation even more attractive than a year ago. Retirees can choose between a flat rate of 5% tax on pension income (above a tax-exempt allowance of €5,000), or they can be taxed at normal tax rates (after the €22,000 personal allowance).
With a tax exemption up to €22,000, you could end up paying zero tax on a full UK state pension (£12,547 per year at the current rate).
If your pensions add up to more than around €25,000 per year, it is usually better to go for the flat rate – take advice. Cyprus has a double taxation agreement (DTA) with the UK.
There is no inheritance, wealth or gift tax in Cyprus. Any UK buy-to-let income is only taxable in the UK.
There is also a non-dom status that suits wealthy expats and retirees who earn income from investments. It’s available to those who have not been resident in Cyprus for 17 of the last 20 years.
No tax is payable on passive income, such as dividends and interest. Capital gains are also exempt – from the sale of shares, stocks, bonds and the sale of foreign property.
Find out more about TAXES In CYPRUS
Thinking about retiring to Cyprus?
From tax advantages and healthcare savings to affordable villas and year-round sunshine, Cyprus continues to attract retirees from across the UK.
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