A mild climate, good medical care and an attractive taxation of foreign pensions make Cyprus a popular destination for retirement.
Many retirees value the combination of pleasant climate, safety, English-speaking daily life and manageable cost of living. On top of this comes a tax advantage: Cyprus offers a particularly favourable taxation of foreign pensions.
Specifically, pensioners resident in Cyprus can choose for their foreign pension between two options: a flat taxation with a low special rate above an allowance, or the regular income tax. Which is cheaper depends on the pension amount – this can be calculated in advance.
Access to the national GESY health system as well as good private clinics.
Favourable special taxation of foreign pensions and no inheritance tax.
A mild climate that can be good for joints and circulation, plus a relaxed pace.
Important topics are health insurance, the correct tax re-registration and the double taxation agreement between Germany and Cyprus, which governs which state may tax which income. Statutory German pensions and civil-service pensions are sometimes treated differently – this should be checked individually.
It depends on the type of pension and the double taxation agreement. Foreign private/occupational pensions can be taxed favourably in Cyprus. Statutory and civil-service pensions are to be checked separately – we clarify this with tax experts.
As an EU pensioner resident in Cyprus, depending on the situation the Cypriot GESY system or private cover comes into question. The right solution depends on your status (e.g. S1 form).
Free, no obligation and honest. In about 20 minutes we clarify whether and how the step makes sense for you.
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