Offering the warmest winter weather in the Mediterranean, Cyprus has long been a popular retirement location for the British.Only a four-hour flight from the UK, Cyprus is more accessible than Florida, South Africa or Thailand, and as a Commonwealth island, also offers the comfort of familiarity and safety.English is widely spoken, cars drive on the left, but the very different siga-siga (slowly slowly) pace of island life suits retirement.The British are the biggest tourism market for Cyprus – the island had a record-breaking year for tourism in 2025, with an 18 per cent increase in winter visitors showing its popularity with those escaping the soggy grey of the UK.’A third of our property sales are now to buyers moving here rather than just buying a holiday home – mostly retirees,’ says Sarah Hordle of Island Homes Cyprus.In recent months, though, certain tax benefits of Cyprus have also become an additional pull factor for those planning how to protect some of their hard-earned cash from HMRC.’In the past two years there’s a noticeable increase in enquiries from UK retirees and, interestingly, from people looking to retire earlier than originally planned,’ says Wayne Thompson of Keller Williams Seven Paphos.’Tax efficiency is certainly part of the conversation – particularly around pension income – yet lifestyle remains a strong driving factor. The climate, pace of life and lower overall cost base are still the strongest pull factors.’ It’s relatively easy to move over to the island if you can show you have the financial means to do so – and that’s based on a cost of living much lower than in the UK.So what are the things to consider? Here’s our ultimate guide to moving to Cyprus. The British are the biggest tourism market for Cyprus – the island had a record-breaking year for tourism in 2025Anglo-friendly appealAlongside Greek, English is widely spoken in Southern Cyprus, which gained independence from the UK as a constitutional republic in 1960.There are two British sovereign bases on the island, and many former military decide to retire in the country after service, after building strong ties.Left-hand driving is another familiar system, as are three-pin plugs. Its legal system is also based on English common law – although there are influences from continental law – as seen in the succession laws – so don’t assume everything works in exactly the same way.There are plenty of expat clubs and groups with pub quizzes, book clubs, cycling and walking groups. Peyia is one area especially well known for its British community. There are Facebook groups and forums for advice on relocation and admin.Cost of livingThe cost of living in Cyprus is 14.2 per cent lower than the UK, according to numbeo.com, but the average net salary is lower, averaging approximately £1,473 per month.Outside the city, the average rent for a one-bedroom apartment is £619 a month, while apartments more centrally located in the city come to around £736 a month. Generally speaking, though, rent is much lower than the UK – especially outside of Limassol and Nicosia.More generally, medical costs are much lower (see healthcare), and outside of the tourist hotspots, eating and drinking can be as little as €10 (£8.70) per person for a lunch in a village behind the coast, with a pint of beer costing around €2.50 (£2.19).Whilst annual council taxes and water bills are much less in Cyprus than the UK, electricity bills are high (although solar panels can produce big savings).Imported goods can be similarly priced to those in the UK, or even more expensive – importing your car to Cyprus, for example, can be costly.Tax benefitsCyprus is a relatively low-tax environment for individuals and businesses, making it increasingly attractive to both small entrepreneurs working remotely, and also retirees.As of 2026, Cyprus has changed its tax rates to make pension taxation even more attractive than a year ago.Now, retirees can choose between a flat rate of 5 per cent tax on pension income (above a tax-exempt allowance of €5,000/£4,371), increased from €3,420 (£2,990), making Cyprus one of the tax-efficient countries in the world for UK retirees. Property is also more affordable in Cyprus than other south-western European states – an additional attraction for retireesAlternatively, pensioners can be taxed at normal tax rates (after €22,000/£19,233 personal allowance). This means 20 per cent up to €32,000/£27,976, then progressive rises to 35 per cent for income over €72,000/£62,946.If your pensions add up to more than around €25,000 (£21,861) per year, it is usually better to go for the flat rate, according to Blevins Franks, a cross-border wealth consultancy – but seek advice. Cyprus has a double taxation agreement with the UK.There is no inheritance, wealth or gift tax in Cyprus. Any UK buy-to-let income is only taxable in the UK.There is also a non-dom status that suits wealthy expats and retirees who earn income from investments, available to those who have not been resident in Cyprus for 17 of the last 20 years.This status includes significant advantages including no tax on passive income, such as dividends and interest. Capital gains are also exempt – from the sale of shares, stocks, bonds and the sale of foreign property.Housing Property is also more affordable in Cyprus than other south-western European states – an additional attraction for retirees.After seeking approval from the Council of Ministers to buy (a straightforward process), those looking to purchase can save on VAT when buying a new-build property: a reduced rate of 5 per cent, rather than the standard 19 per cent, is available, subject to conditions, until June.Historically, Paphos has been the most popular destination for UK retirees. ‘Accessibility is a major factor. Paphos International Airport offers excellent year-round connectivity, with daily flights from most major UK airports,’ says Barry Winter, of Pafilia Property Developers.He says that in the Paphos district, Konia, Tala, and Peyia are well-established communities, whilst those seeking something more tranquil may well prefer Polis, Argaka, and Latchi.In Peyia’s Coral Vista development, the company is selling new properties from €480,000 (£419,820) plus VAT.’Two- and three-bedroom apartments and townhouses are popular with those looking to save money on purchase price and upkeep costs, allowing funds for travel and daily living.’ This detached villa in Famagusta is up for sale for €493,063 (£412,225) and is located moments from the sea You can find second-hand properties in Paphos too: in Peyia a two-bedroom villa costs around €225,000 (£196,791).The south-eastern portion of the island, offering the best beaches in Cyprus at better value, has also become increasingly popular. The traditional villages behind the coast in Famagusta – such as Sotira, Avgorou, Liopetri, Xylofagou – are sought by expats.You can find a three-bedroom villa with a pool from around €240,000 (£209,910), or a new-build villa from around €300,000 (£262,388).Prices rise closer to the sea: a detached villa in Famagusta is for sale at €493,063 (£412,225).On second-hand properties, tiered transfer tax is payable – allow around €5,000 (£4,373) in total for buying costs, including legal fees, on a property worth €300,000 (£262,388). Residency and visas after BrexitTo stay in Cyprus for more than 90 days, a UK national will need to obtain a visa or residence permit. Those with an Irish or other type of EU passport will apply for a Yellow Slip (registration certificate).Most retirees will apply for a Pink Slip – temporary residence permit – which is valid for one year, and can be renewed annually. You must show that you have €10,000 (£8,746) in a bank account, and enough income to cover living expenses – around €2,000 per month, plus an additional 20 per cent for a spouse.You can rent or own a property and have private medical insurance unless you are of UK state pension age (see healthcare below). Under the terms of this permit, you are not permitted to be in employment.You apply for a residency permit at the immigration department of the district where you are living.After taking your paperwork to a pre-booked appointment, including medical and police checks, it takes six months to get your permit.Allow around €1,000 (£876) per person if you are paying for private healthcare cover (under state pension age).Alternatively, there are routes to permanent residency permits, such as the ‘Category F’ visa, granted to applicants with a secured annual income, who do not need to work.To qualify for a Category F visa, retirees need an annual income of €9,568 (£8,368).There is also the option of ‘retiring with investment’, whereby would-be residents invest in a Cyprus-based property or business, and qualify for long-term residency in return.Applicants need to purchase a new-build property for at least €300,000 (£262,387) plus VAT. However, the high annual income needed makes this a less popular option: €50,000 (£43,731) per year for the main applicant and another €15,000 (£13,119) for the spouse, so that’s around £56,000 for a couple.Less common is the BCS Visa, an option for those semi-retired but setting up a company in Cyprus, or employees of a Cypriot company, giving the right to live, work and access healthcare in Cyprus, and also enjoy non-dom tax status. HealthcareThe affordability of Cypriot healthcare is a big incentive for retirees. If they are of UK state pension age they can access the Cypriot General Health System (GESY), which is viewed as high standard.In order to access this service, retirees must obtain an S1 Certificate from the NHS in the UK – although those that are permanent residents and pay social security can access GESY without this.For all residents there are small charges (co-payments) for prescriptions and GP visits. These can be surprisingly low: €6-10 (£5.25-8.75) to see a specialist, €10 (£8.75) for an MRI scan, and €10 (£8.75) to register with A&E. Residents also get a free dental check-up and clean per year – it’s around €38 for an extra one, or €50 (£43.73) for a filling. ‘Southeast Cyprus is like Cornwall with sun’Last year, successful Sunderland business owner Dean and his partner Shirley decided to move to Cyprus. In May, the couple bought an off-plan three-bedroom property in Pernera, a coastal resort near Protaras in the south-east of the island.Dean, a cycling-mad 63-year-old, is semi-retired, and says the UK is ‘imploding’, and prefers sun-drenched days rather than ‘eight months of winter’ in northeastern England. Sunderland business owner Dean and his partner Shirley decided to move to Cyprus, where they bought a property in Pernera ‘When you stop working every day in an office the [poor] weather becomes even more apparent,’ says Dean, who has now handed over the running of his UK automotive business to his son.’We spent years touring Spain in a motorhome, but found the language barrier an issue away from the coast.’We also considered Malta for the tax benefits, but the property is too expensive.’The couple visited Cyprus and after deciding Paphos wasn’t for them, visited the Paralimni area.’We have found Cyprus to be the nicest Mediterranean island, the property prices affordable,’ he says of their new home with a private pool, that cost around €500,000 (£437,312).’Protaras is beautiful – that corner of the island, especially Cape Greco, where I love cycling, is like Cornwall with the heat,’ he says of the cliffs, pine trees and clear water. They’ve also joined a swimming group. ‘Paralimni has three good supermarkets. We can have a lovely lunch for two for €40 (£34.98) in a village like Sotira. We don’t need nightlife.’Dean has used a BCS Visa to move over, setting up an arm of his business as a Cypriot company, working ‘a couple of hours’ on his laptop prior to full retirement, whilst Shirley, also 63, loves the beach.This visa allows access to GESY even before he hits UK state pension age.He remains realistic about the prospect of facing old age away from their family.’It may mean that we come back at some point, so we have kept a property in the UK. But the tax situation here is very competitive and the Cypriots have warmly welcomed us.’