For anyone seeking abundant sunshine and generous tax perks, Cyprus is becoming increasingly popular among British expats.

It’s not a classic winter-sun escape yet the island has the warmest winter weather in the Med (think 18-degree days in February) – and the 4.5 hour flight from the UK makes it easier to reach than Florida or Dubai.

Retirees have long loved its laid-back Mediterranean pace alongside the reassuringly Anglo-friendly culture of the Commonwealth country but in recent months its tax benefits have also been brought into sharper focus since the autumn Budget.

‘Cyprus has seen a big increase in interest since Covid, but especially the last six months. The income requirement for residency is very achievable and the cost of living is much lower than many other countries,’ says Sarah Hordle of Island Homes Cyprus estate agency. She says anti-foreigner sentiment in Spain is adding a few new buyers too.

Wayne Thompson, of estate agent Keller Williams Seven Paphos, adds: ‘People are making changes to their lives: families looking for a safer environment, or the 50+ market – especially company owners – planning for their future and considering the tax efficiency.’

There are around 30,000 Britons living in Cyprus, and the island saw record tourism in 2024, with an increasing off-season appeal – November recorded a 13 per cent increase on the previous year; December an 8 per cent rise.

These are translating into property searches, according to the global luxury marketplace JamesEdition, who report an increase of 20 per cent for searchers for Cypriot properties in the last quarter of 2024, year on year. British buyers account for a fifth of these, followed by the Americans.

So what are the things to consider? We’ve spoken to estate agents, legal experts and local residents to bring you the ultimate guide to moving to Cyprus.

Cyprus offers abundant sunshine, as here on Nissi beach in the resort of Ayia Napa

Visas

Residency rules keep changing in Cyprus. There is a one-year digital nomad visa but most people opt for the temporary residence permit – the so-called ‘pink slip’ – that is renewed after one year.

You are not allowed to get a job in Cyprus but you can work remotely for a foreign company, and show sufficient income sourced from abroad to cover living expenses – about £20,600 (€25,000) to £25,000 (€30,000) income per year for a three-person family, according to Nicos Papacleovoulou legal consultants. You must rent or own a property, have private health insurance and show £20,000 (€24,000) in your Cypriot bank account when you arrive – plus another 20 per cent for a spouse and +15 per cent per child.

There are two permanent residency permits: the ‘Category F’ visa (with the purchase of any value property) and the Category 6.2 Fast Track (sometimes called the golden visa) available for those who buy a new-build property for at least €300,000 + VAT (5 or 1 9 per cent) and show income of £41,000 (€50,000) per year for the main applicant and another £12,400 (€15,000) for the spouse.

Politics and culture

The island of Cyprus is divided into two. Southern Cyprus is a constitutional republic since gaining independence from the UK in 1960. It has a stable government with a president elected every five years. The current incumbent is Nikos Christodoulides, an independent candidate who had the backing of centrists and centre-Right parties when elected in 2023. 

Cyprus joined the EU in 2004, adopted the euro in 2008, and is in the process of joining the Schengen area, due by 2026. English is widely spoken and left-hand driving is another familiarity, as are three-pin plugs.

Its legal system is based on English common law, with some influences from continental law (for example, its forced heirship rules in which natural children of the deceased have a right to each inherit a share of their parents’ estate). 

The other section of the island, the self-declared Turkish Republic of Northern Cyprus, is not recognised by the EU.

Cost of living

The cost of living in Cyprus is 19 per cent lower than the UK, according to numbeo.com, but the average net salary is much lower – £1,354 per month compared to £2,420 in the UK. Rents have increased in Cyprus since the pandemic, with a one-bedroom apartment outside a city averaging £632 per month.

A single person needs £1,488-£1,653 a month to live on, including rent, according to visa consulting service Immigrant Invest. A family of four would require £3,720. 

A meal in a traditional restaurant is around £15-20 per person, and a beer around £3

While annual council taxes and water bills are much lower in Cyprus than the UK, electricity bills are high. For example, for a three-bedroom villa the council tax might be €170 (£141) per year, but electricity could be €200 (£166) per month – still less than a UK comparable at £195, according to Rightmove. 

You can find a meal in a traditional restaurant for around £15-20 per person, according to numbeo.com, and a beer around £3.

Housing

To rent a one-bedroom apartment outside cities costs around €700-€800 (£579-£661), in the city centre €900 to €1,000 (£744 to £827). A three-bedroom property costs €1,300-1,500 per month outside the city centres.

In the Paphos area, you can find small apartments from around £90,000, but most buyers’ families moving want a villa. In the popular Peyia area you can find a three-bedroom bungalow with a private pool for £300,000; or a four-bed, four-bath villa for £415,000.

Peyia, Tala, Chloraka, Kissonerga, Sea Caves, Konia and Geriskipou are popular for access to schools, healthcare, supermarkets, shopping and a British-run dance school. In the Famagusta area the ‘red soil’ villages (Kokkinochoria) behind the coast – Avgorou, Liopetri, Xylofagou and Frenaros – are popular with expats: you can find a three-bed home from around £165,000, or nearer £210,000 for one with a pool.

White-painted houses on the hills of Peyia, where a three-bedroom bungalow with a private pool costs around £300,000

Non-EU nationals must seek approval from the Council of Ministers to buy a property: a straightforward process which takes 2-3 weeks. Stamp duty is 0.15 per cent for properties up to €170,000 (£142,000) and 2 per cent for any amount above this. 

On second-hand properties, tiered transfer tax starts at 1.5 per cent for the first €170,000 (£142,000), 2.5 per cent for the second €170,000, and 4 per cent for anything over and above €340,000 (£280,000). 

Those buying a new-build home must pay 19 per cent VAT but can pay just 5 per cent if the property is their primary residence. Legal fees are around 1 per cent. Cyprus has abolished their annual property tax.

Tax perks

Cyprus is a relatively low-tax environment for individuals and businesses. Its corporate tax rate of 12.5 per cent (compared to the UK’s 25 per cent) is one of the lowest in Europe and the country only taxes income earned locally making it attractive to international companies.

Income tax is imposed on the worldwide income of individuals who are tax residents in Cyprus.

The individual becomes a tax resident in Cyprus if they spend at least 183 days there during the calendar year, or meet all of the conditions of the ’60-day rule’: spend at least 60 days in Cyprus, have no other tax residency, maintain a permanent home and have business ties in Cyprus.

The first €19,500 (£16,343) of income is tax-free. Tax rates then start at 20 per cent and rise progressively to 35 per cent for income over €60,000. If you are a Cyprus tax resident, you are taxed on worldwide income regardless of where it is earned. However, the Cyprus-United Kingdom double tax agreement provides support to prevent or reduce double taxation on income, profit and dividends. It’s worth noting, though, that the specific tax treatment depends on the type of income and individual circumstances.

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What it really costs to move to Cyprus: From tax to property and cost of living

Individuals who are not tax residents of Cyprus are taxed only on certain types of income accrued or derived from sources in Cyprus.

Non-dom status is available to those who are not tax residents in Cyprus for at least 20 years prior to their application (subject to certain conditions). This status offers significant tax advantages.

This includes no tax on passive income, such as dividends and interest, for 17 years. This makes Cyprus interesting for those, including retirees, who earn income from investments. Capital gains are also exempt – from the sale of shares, stocks, bonds and the sale of foreign property.

There is no inheritance, wealth or gift tax in Cyprus. Any UK buy-to-let income is only taxable in the UK.

Retirees can choose between a flat rate of 5 per cent tax on pension income (above a tax-exempt allowance of €3,420); or you can be taxed at normal tax rates (after €19,500 personal allowance) of 20 per cent up to income of €28,000, then it rises progressively to 35 per cent for income over €60,000.

The switchover point is around €25,000 [per year] – if your pensions add up to more than this it’s better to go for the flat rate, according to Blevins Franks, a cross-border wealth advisory service. Cyprus has a double taxation agreement (DTA) with the UK.

Healthcare

The Cypriot General Health System (GeSY) is considered to be high standard and ranks mid-range among EU comparables. However even for Cypriot residents it is not free – there are small charges (co-payments) for prescriptions, GP visits and specialists. 

Expats who are permanent residents of Cyprus and pay social security may be eligible to access GeSY, plus those of UK state pension age can access it via the S1 Certificate from the NHS in the UK. 

Many Cypriots as well as expats have private insurance to bypass long waiting times in the public system. Monthly premiums are around €150-€300 (£125-£250) per adult, according to 1st Move International.

Schools

Cyprus has a strong education system with expats having the choice between Greek schools and private international schools. Younger children typically integrate more easily into the community if they attend Greek school but then are often transferred at high school stage to an international so they can study GSCEs, A-levels or the IB with international universities in mind. Fees for these private schools are much lower than in the UK.

In the Paphos area there are four private schools and three universities. At the ASPIRE Private British School senior fees are €6,500-€7,850 (£5,360-£6,480) per year. Among those with a good academic reputation in the east are the American Academy Larnaca, the PASCAL group of private schools and the Xenion High School in Paralimni. At PASCAL secondary fees per year are €7,870-€10,800 (£6,500-£8,900).

‘We feel grateful every day when we wake up and see sun’ 

Bryony and Jamie moved to Cyprus after the pandemic and their son was born there

After living in Copenhagen for four years, Bryony and Jamie were fed up with grey weather. The couple, from Arbroath in Scotland, moved to Cyprus as soon as flights opened up after the pandemic.

‘We sold all our stuff from our Danish apartment, booked an Airbnb for a month in Paralimni, on the east coast of Cyprus, and started afresh,’ says Bryony, 34, a plumber.

Luckily they managed to get residency in Cyprus before Brexit changed the rules and Jamie is able to still work remotely as a software developer for his Danish company. ‘We liked the area and found a house to rent for a year in Ayia Thekla for €1,200 (£992) a month,’ says Jamie, 36. It’s a calm, residential area with a beautiful beach just ten minutes from the resort of Ayia Napa.

After moving to a cheaper area for 18 months to save up to buy a property, the couple are back in Ayia Thekla with their one-year-old son Adaidh and rescue dog Rudi in a three-bedroom villa they bought for €255,000 (£212,000) in December.

‘We love spending all the year outside – walking in the mountains or having BBQs with friends – we know four couples like us who’ve come for the sun, had children and receive income from outside Cyprus,’ says Bryony, who has set up a woodworking business, @Drifthomedecorbybee

Frustrations include the less digitised culture on the island, and its less progressive attitude to natural births, says Bryony, who had Adaidh at Limassol Hospital. They are also not sure about senior schooling opportunities. ‘But we feel grateful every day when we wake up to see sun,’ they say.