The true cost of retiring in Cyprus

Cyprus is a sunny island with a peaceful yet cosmopolitan lifestyle. But is it an affordable place to retire? Our guide contains all the information you need to help you decide whether retiring to Cyprus is a good idea.

Key takeaways

• To retire in Cyprus, you need a minimum of €9568 annually, which must come from abroad and be increased by at least €4613 for each dependent.
• Buying and renting property can be expensive, but the cost is still lower than in other parts of Europe or the UK.
• The Cyprus tax system is favourable.
• Bills, utilities, shopping essentials, health and leisure are not too expensive for the average retiree.
• Transport is not sufficiently well-developed, so you will need to own a car.
• Permanent residence options are available for retirees.

How much money do you need to retire in Cyprus?

For retirees, the Category F residence permit is the best option for moving to Cyprus. This permit is granted to individuals with a guaranteed annual income of at least €9,568, which must be sourced from abroad. The income requirement increases by €4,613 for each dependent. The Category F visa is a permanent permit.

The only disadvantage of Category F is that applications are processed slowly. In 2025, the Migration Department began processing applications submitted in 2019. Until approval, you will need a Pink Slip to reside in Cyprus for more than 90 days.

The amounts specified as Category F requirements are insufficient for residing in Cyprus due to the higher cost of living; more details are below.

Renting a place

Renting a place to stay gives you many options because of the variety of properties. One note of caution is that prices are on the rise. Nevertheless, a lot will depend on location, type of property and whether the property is new.

Some indicative prices for a single-bedroom apartment mentioned in the press and on real estate agents' websites are:

• Starting from 600 Nicosia
• Starting from 650-700 Limassol
• Starting from 700 Larnaca
• Starting from 700 Paphos.

In the major cities, three-bedroom apartments should cost about €1,500-2,500. However, the price depends heavily on location, so it is possible to rent for less.

Buying property

Buying also includes all types of property, from studios to boutique villas. Prices are rising, though they are still cheaper than in other parts of the world, like continental Europe or the UK. As with renting, a lot will depend on the property's location, type and condition.

Anyway, investing in property in Cyprus has obvious advantages, including Cyprus residency by investment.

Taxes

Cyprus has double taxation agreements with many countries. Provided your country is one of them, you will not be taxed twice while living in Cyprus.

If you are a tax resident of Cyprus, you will pay tax in Cyprus on your worldwide income. However, if you are not, you will pay tax only on the income you receive from Cyprus.

A tax resident of Cyprus resides more than 183 days in a calendar year in the Republic or for at least 60 days and is not a tax resident anywhere else (“the 183 rule” and the “60-day rule”).

Note that inheritance, interest, and dividends are exempt, but there are also exceptions for capital gains.

So, how are pensions taxed in Cyprus?

There are two options: a flat rate of 5% with an allowance of €3,420 or the pension taxed as annual income.

The allowance means the 5% applies to sums over €3,420.

Annual income is taxed according to an income scale.

A lump sum received as retirement gratuity is not taxed.

Bills and utilities

Electricity and water should cost an average family about €400 bimonthly. However, the budget may go up during the summer, when air conditioning is needed most of the day and some night hours.

As of November 2024, the Electricity Authority of Cyprus charged €10.35 per kWh for domestic use, plus additional charges for supply and ancillary services.

Consult with the municipalities regarding water usage charges. For example, Larnaca charges €15.75 for fixed and maintenance fees and €1.00 per cubic metre of water for the first 15 cubic metres.

Mobile phone packages vary and offer various services, including unlimited internet use. Value plans range from €11.99 to €22.40.

Wi-fi and internet access are also available for homeowners, with value packages at about €14.99-30.26.

Basic goods and shopping

For basic goods and everyday essentials, you are advised to check the Cyprus Consumer Service, which has an updated index every month. In January 2025, for example, milk (2L full fat) was €2.95 on average, large sliced white bread 1.85, eggs (12) 3.43 and bottled water (12x500 ml) 3.03.

Here is the link: https://consumer.gov.cy

All cities have malls and shopping streets. The major clothing houses and stores have shops in Cyprus, including Mango, Marks and Spencer, Stradivarius, Zara, and so on.

Fuel and transport costs

On average, unleaded 95 gasoline costs €1.39 per litre, while petrol for central heating costs €1.01 per litre (prices January 2025).

Public transport is infrequent, and you may need a car, especially if you drive from one city to another or from a village to the city or the seaside.

If you rely on public transport, the prices are relatively low and can be found at: https://osea.com.cy/bus-routes/.

For each city, check with the local municipality websites.

Healthcare

With a residence permit, you are allowed medical treatment with the General Health System (GeSY), which is free. There are numerous private healthcare providers of very high standards; their fees, however, may be expensive.

Fitness and leisure

You can join fitness and wellness clubs and spend your free time at the movies or cafes. They are all reasonably priced, so do not expect major expenses there.

Our services

Our office can help you throughout the process of retiring and getting a home in Cyprus. We have a team of skilled real estate lawyers and immigration experts. Contact us for more information.

Frequently asked questions