Retiring in Cyprus

If you are looking for a place to retire abroad with a low crime rate, a slow pace of life and a nice Mediterranean climate, then you may be interested in retiring overseas in Cyprus. The island of Cyprus is actually a rather popular place for people to retire to and there are a large number of British retirees living on the Greek island of Cyprus.

Some people are drawn to Cyprus because it is a European country where the majority of the population speaks English, even though the official language is Greek. Others are drawn by the nice mild climate or the low crime rate compared to the rest of Europe. Also attractive about Cyprus are its low cost of living and its advantageous tax benefits that many retirees enjoy. If you move to Cyprus to retire then you will find your self in the midst of a rather large network of other foreign retirees. The largest group of foreign retirees in Cyprus is the British. As a result of this, there are several English language newspapers and several British societies in the major cities and towns.

One of the more attractive benefits of retiring in Cyprus is the tax benefits that retirees enjoy. Cyprus currently imposes a very small income tax on retirement pensions and has double taxation agreements with many other countries. This means that your income from your pensions will not be taxed in two countries at once, for instance your home country and Cyprus will not tax your income but one of the two will. There is one exception this though. The United States is the only country in the world that taxes their citizens' income regardless of where they are living and where they earn the income. This means that Americans cannot avoid double taxation. Note that in Cyprus husbands and wives are taxed separately.

Once you arrive in Cyprus there are some other benefits that you will be able to enjoy as well. For instance, you will be entitled to duty-free privileges. This means that you can import your car and other personal effects without having to pay duties on them.

You will need to have a category F temporary residence employment permit (TRE) to reside in Cyprus legally. With the category F permit you are not allowed to take up employment in Cyprus. You should apply for this as soon as you can once you are in Cyprus as the process takes about a month. However, you are allowed to be in the country for 90 days without needing to have it.

When you apply for your TRE permit you will also need to show proof of your financial resources. You will need to show that you have enough money to support your self without working while in Cyprus. The minimum amount needed is around $10,000 US but can vary depending on your circumstances and individual situation. Each applicant is assessed individually, which is why the amount can vary.