Cyprus is attractive for more than its climate. Its tax system may also be of interest to retirees and international residents, provided each personal situation is assessed professionally.
Personal allowances
Income remains free of tax up to the applicable personal allowance. Progressive income tax rates apply above it. The precise treatment depends on residence and the type of income.
Taxation of pensions
Foreign pension income may, under certain conditions, be treated using a special alternative tax rate. A qualified adviser should review annually which option is more favourable.
Non domiciled status
New residents may, subject to conditions, benefit for a limited period from special treatment of dividends and interest. Tax residence and domicile status are decisive.
Other considerations
- Cyprus currently has no conventional inheritance tax
- Double taxation treaties can prevent income being taxed twice
- VAT and municipal charges remain relevant in daily life
- Many procedures can be completed digitally
Preparing well for the move
Before moving, have pensions, investments, property and estate planning considered together. Elysia can help with orientation but does not replace individual tax or legal advice.
This article provides general guidance. For legal, tax or health decisions, we recommend individual advice from qualified professionals.
