Cyprus Real Estate

Peaceful retirement in Cyprus: the pros and cons of life on the island in old age

  • 15.07.2021
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For elderly people moving to Cyprus is not at all a fashionable trend, but a balanced and rational decision related to health, finances, taxes and desire to lead an active, interesting and safe life. Why retirees choose Cyprus and how to get a residence permit in Cyprus for pensioners, we will discover below.

Favorable climate, healthy food and European health care

These are the three main factors that make people think about moving to Cyprus in their retirement. The advantages of each of them are obvious:

  • Cyprus Climate. 340 sunny days a year, mild winters, cool sea breezes, mountain air. All of these factors are good not only for healthy people to maintain their health but also for people with cardiovascular diseases and asthma, which many elderly people suffer from.
  • Food. A pensioner in Cyprus can buy fresh food every day. Local farmers supply them to shops and markets. Farming in Cyprus is an important factor of the economy. Because of direct purchase from the manufacturer and no transportation costs, food prices are low. Besides, due to a favourable climate there are 3 harvests of fruits and vegetables per year. And let’s not forget about the Mediterranean Sea, a source of fresh fish and seafood.
  • Healthcare. The island has a large number of public and private medical centers with a European level of healthcare. With insurance, treatments are provided free of charge.

Retiring to Cyprus can help you avoid most of illnesses and complications associated with age, as well as mitigate the course of chronic diseases.

Visa F Cyprus residence permit for retirees

To obtain the status of a pensioner in Cyprus, a person who is not an EU citizen will need to apply for a category F residence permit, which provides the right to temporary residence in Cyprus.

Please note that in order to obtain a Category F visa, you must prove that you have sufficient income or capital to support you without getting employment in Cyprus. In each case, an individual minimum amount is determined, but on average it is 9 750 euros per year per applicant. Cypriot government agencies will need just a bank statement showing your savings.

If you are planning to move to Cyprus for a nice peaceful retirement, you can also use the following sources of income:

  • renting out properties;
  • interest earned on bank deposits, bonds issued by Cypriot companies or companies abroad;
  • dividends from shares of companies in Cyprus or abroad;
  • pensions in European or other countries.

Obtaining a visa in Cyprus takes 5-12 months. But there is also a simplified fast option for obtaining a residence permit for pensioners - buying real estate. The minimum investment in real estate for such a permit is 300 000 euros.

Having received a category F visa, you can actually live in Cyprus for an unlimited amount of time, as the visa can be renewed. For renewal, you will need to provide exactly the same information about capital and income.

EU citizens only need to obtain an alien registration card to receive their permanent residency in Cyprus. To do this, you must prove that you have sufficient capital or income.

Retirement age in Cyprus

Cypriots are eligible for a state pension upon reaching 65 years of age. In order to receive benefits from the government, a person must be insured by the Social Insurance Fund.

All persons who have legally resided in Cyprus or any other EU country for 20 years after turning 40 or 35 years after turning 18 have the right to a social pension in Cyprus.

Pension payments in Cyprus can be claimed by:

  • persons who have officially worked in Cyprus for 3 years;
  • persons who have been living on the island for many years - in this case, the amount of the benefit and the right to it will be determined individually.

Note that regardless of the retirement age in Cyprus, while living on the island you can receive a pension in your home country since in some other countries residents retire much earlier.

Low taxes for retirees in Cyprus

Cyprus is the most tax-friendly country. For example, if the total annual pension is less than 3400 euros, then you will not have to pay any tax on it. For pensions over 3400 euros, the tax will be 5%.

If you receive a pension in European countries, in some cases the money is paid directly - bypassing the banking system of Cyprus. Such an operation is legal, which is facilitated by a special agreement between Cyprus and other countries. For example, in a similar way, Cyprus pension is paid to its citizens by the United Kingdom.

In addition to double taxation treaties on pensions, Cyprus benefits are:

  • No state duties on the import of cars and some types of electronics;
  • No inheritance tax - relatives will be able to transfer your property for free;
  • No need to pay defence tax.

If your annual income is more than 19 500 thousand euros, the income tax will be 20-35%.

Investing in real estate is one of the ways to get a pension in Cyprus

The opportunity to easily buy property in Cyprus is another important magnet for international residents. Buying real estate allows you to quickly obtain a residence permit in the country, as well as qualify for a pension in Cyprus.

Cyprus real estate advantages:

  • Small comfortable coastal towns with low-rise buildings;
  • Small number of high-rise buildings and low building density, lots of greenery;
  • Residential complexes have patios, swimming pools, play grounds and gyms;
  • Simplified procedures for citizens of other countries who want to buy property in Cyprus;
  • Most properties are sold with furniture and household appliances.

Comfortable lifestyle for retirees in Cyprus

Each city has a well-thought-out infrastructure that takes into account the needs of both children and adults and pensioners. Having moved to Cyprus, you will immediately notice that regardless of the location of your home, there will be all the necessary amenities nearby - shops, cafes, banks, hospitals and various clubs. Also in the immediate vicinity there may be a beach or fresh water dam for walking and fishing.

Cyprus is a place with plenty of opportunities for self-development, making new acquaintances and maintaining health. In almost every city you will find:

  • SPA and Wellness centers;
  • world-class golf courses and golf residences;
  • tennis courts;
  • jogging and cycling paths;
  • free outdoor sports grounds;
  • dance and meeting clubs for retirees;
  • yoga and fitness studios.

Considering the warm climate, a residence permit in Cyprus for retirees is almost a year-round sanatorium, allowing them to lead an active life.

International airports - travel without borders

There are two international airports on the island - in Pafos and Larnaca. On the one hand, it makes it easier for residents of other countries to get to the island. On the other hand, it opens up endless around the world travel opportunities for the retirees of Cyprus. Given the location of the country at the crossroads of Europe, Asia and Africa, seniors have many opportunities for short flights and trips to different countries.

Safe and friendly population

For many years Cyprus has been included in the list of the safest countries to live and travel, with a population of less than 5 million inhabitants. Buying a property in Cyprus and moving here for permanent residence, you can safely walk around at any time and not fret about whether you forgot to set the alarm on the vehicle.

A pension in Cyprus is attractive for other reasons as well:

  • Cyprus is a multicultural country with a long history. The way of life and local traditions were influenced by Great Britain, Greece, Turkey and other countries.
  • Over 100 thousand immigrants from other countries permanently reside on the island. By communicating with them, you can get acquainted with new cultures, learn foreign languages.
  • Most Cypriots speak English fluently, which facilitates mutual understanding. Besides, the locals have a gentle and friendly hospitable southern character. There are also many international groups and communities..

Considering all of the above factors, it shouldn't come as a surprise why so many people over 50 are considering moving to Cyprus. Pension on such a beautiful island with a comfortable climate is a dream of any person, which may well become a reality.