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With retirement on the horizon, many people have chosen Cyprus
as the ideal haven to sit back, relax and enjoy the mild Mediterranean
climate, beautiful scenery, low cost of living, generous tax incentives
and friendliness of the local people.
As you leave behind the stresses and responsibilities of your hard
working years, Cyprus offers the perfect setting to unwind and enjoy
your retirement. Whether you wish to spend your days lazing in the
sunshine, eating out with friends and family or getting to grips
with your golf clubs… there is always plenty to see and do
with activities catering for all tastes and lifestyles.
For your convenience we have briefly outlined essential information
and relevant regulations for those of you wishing to retire in Cyprus.
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Immigration permit
Aliens wising to reside permanently in Cyprus must first obtain
an immigration permit. This can be applied for through the Ministry
of the Interior of the Republic of Cyprus. Persons wishing to retire
in Cyprus should be able to show documentary evidence of sufficient
funds deriving from abroad (either from your pension and/or other
income from sources outside Cyprus) to support themselves and their
dependents, i.e. CYP 5,600 per year for a single person plus CYP
2,700 per year for every dependent person.
If your application for a Permit is approved under the above mentioned
Regulations you will not be allowed to engage in any form of business
profession or occupation, whether paid or unpaid whist residing
in Cyprus.
For further information please contact:
Migration Department,
Ministry of the Interior (Nicosia)
Tel: ++357 22 804502
Fax ++357 22 804587
E-mail: migration@crmd.moi.gov.cy
Importation of personal and household belongings
Retirees are entitled to import reasonable quantities of personal
and household belongings without payment of duties, so long as they
are imported within 12 months prior to and after their arrival.
Imported belongings will be checked by customs officers on arrival
in Cyprus to make sure that they have been in household use for
a reasonable period and that they are intended for continued personal
use in Cyprus.
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For further information please contact:
Department of Customs and Excise (Nicosia)
Tel: ++357 22 865267
Fax: ++357 22 305151
E-mail: customs@cytanet.com.cy
Tax Incentives
In order to avoid double Taxation, Cyprus has tax treaties with
many countries around the world. These treaties serve to avoid double
taxation of income earned in participating countries.
The Double taxation Treaty existing between the U.K. and Cyprus,
allows a U.K. citizen to receive their pensions and investment income
in Cyprus, with exemption from U.K. taxes.
In recognition of their value to the economy, recent tax reforms
have reduced the taxes imposed on alien residents. By buying a property
and becoming an official resident (living permanently in Cyprus
for at least six months and one day) you are entitled to enjoy the
benefits of being a tax resident. If you choose to be taxed as a
resident of Cyprus, pension and investment income that you bring
to Cyprus will be taxed at the extremely competitive rate of 5%!
The assets of an expatriate in Cyprus are taxed on a remittance
only basis, enabling them to keep their assets growing free of taxes
in an investment trust or offshore bank whilst only bringing funds
into Cyprus as and when needed.
For further information please contact:
Director of Inland Revenue Department (Nicosia)
Tel: ++357-22-306837
Fax: ++357-22-661243
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Bank Accounts
Commercial banks in Cyprus allow alien retirees to obtain Foreign
currency accounts and external accounts in Cyprus pounds.
These accounts enable you to credit your account via transfers from
abroad or from other foreign currency accounts, imported / declared
banknotes and authorised payments by residents of Cyprus in local
currency. Monies in these accounts are freely transferable abroad.
Feel free to contact us for any information relating to opening
a bank account in Cyprus.
Vehicle Allowances
We are sure that once you are in Cyprus, you will want to get out
and about to see all of the delights the island has to offer. Retired
persons residing in Cyprus on a permanent basis are entitled to
either bring along their privately owned car from overseas without
payment of import duties or, to purchase a car here in Cyprus without
payment of duties!! Registration will only be granted once to each
eligible person for the registration of one motor vehicle only.
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Here we briefly outline the procedures involved with:
A. The Importation of motor vehicles
As a retired person planning to reside permanently in Cyprus you
are entitled to import and register a private motor vehicle without
Payment of import duties provided that:
a) you are the owner of said vehicle and that you import the vehicle
from abroad at the time of your arrival for permanent residency.
b) your application for registration is submitted within one year
from the date of your arrival.
Application for this concession must be made to the Director, Department
of Customs and Excise in Nicosia (see contact details below) once
the vehicle is in Cyprus. Until the application is processed and
authorisation is granted you may drive your vehicle temporarily
without payment of any duties on the strength of form C.104 issued
at the port of importation of the vehicle.
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B. The purchase of a vehicle locally from duty free stocks
As an alternative to importing your current vehicle into Cyprus,
you also have the option to acquire a car locally from duty free
stocks without payment of duties.
This concession is granted on application to the Director, Department
of Customs and Excise in Nicosia (see contact details below). Application
forms must be obtained from his offices in person, after the arrival
of the retiree. Until the application is processed and the authority
is granted, you may purchase a vehicle from duty free stocks without
payment of duties on a temporary basis (visitor's car), giving you
the time to proceed with your application.
For further information please contact:
Department of Customs and Excise (Nicosia)
Tel: ++357 22 865267
Fax: ++357 22 305151
E-mail: customs@cytanet.com.cy
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