With year-round sunshine and a relaxed pace of life, it’s no wonder that Cyprus has a large expat community. Who wouldn’t want to escape the dreary UK winters and spend their days at the beach? Now we’re post-Brexit, the rules for retiring to Cyprus have changed. It’s not as easy now to relocate here, but it isn’t impossible. If you had your heart set on a Cyprus retirement, then don’t give up on your dreams.
There are different rules for those who will be working in Cyprus, and those who simply wish to retire here, so we’ll focus on the rules for retirees here and we’ll also assume that you don’t already live in Cyprus.
Any UK residents now moving to Cyprus will not be eligible for free healthcare. Instead, you’ll need to take out private medical insurance. However, you can at least rest assured that you’ll have the benefit of the expert, world class healthcare that Cyprus is renowned for.
Working in Cyprus
It’s important that your pension income or any other income you may have from the UK such as from a rental property, is going to be sufficient for you to live on when you’re in Cyprus, as retirees to Cyprus from the UK are not legally allowed to work here, so you couldn’t simply take up a small part time job to give you some extra cash, this would not be allowed.
Money & taxes
The double taxation agreement with Cyprus remains post Brexit, this means that you will not pay tax twice on any income you receive. As part of the process for seeking residency, you will need to open a Cyprus-based bank account.
Pensions & benefits
You will receive your UK state pension when you reside in Cyprus, but the situation regarding increments is still unclear. Prior to Brexit, British citizens living in Cyprus were entitled to annual increments, but it is thought that this will now be phased out. It’s certainly something to bear in mind and you may wish to consult with an accountant before you make the decision to relocate to Cyprus.
Visas & residency
For retirees, the quickest route to permanent residency is via the Cyprus Permanent Residency program by investing in Cyprus Property a minimum amount of €300,000.
Also, you will need to prove an annual income of €30,000 plus an additional €5,000 for each dependant. Again, medical insurance is mandatory. The process is simple, straightforward, and fast; it typically takes only two months for the permit approval. Fees for this process will be in the region of €4,000 including the €500 application fee and lawyer fees.
Buying a residence
As part of the residency process, you will be required to purchase a property in Cyprus. This is essential, you can’t apply for residency with a rental property. You’ll find property prices in Cyprus offer great value, and you’ll discover that your money goes much further in Cyprus than it does back in the UK.
So, when it’s time to look for your dream home in Cyprus, please do visit Sweet Home Estates. We are specialists in property development with over 15 years’ experience of helping people make their dreams come true. If you need any help or guidance, or simply want some ideas and inspiration, visit our website today.