Living in Cyprus: Cost of Living, Retirement and Where to Buy

At a glance

• Day to day living costs in Cyprus are generally lower than in the UK, Western Europe and major North American cities
• Limassol is the most expensive place to live, while Paphos and Larnaca are more moderately priced
• There's no annual property tax, and no inheritance tax
• Retirees can choose to pay a flat 5% tax on foreign pension income above €5,000
• English is widely spoken, including by doctors, lawyers and in everyday life
• Cyprus has a public healthcare system, GESY, alongside a strong network of private hospitals
• Paphos has the largest established expat and retiree community on the island

Life in Cyprus

Cost of living guides give you an average for the whole country. What really matters is what life costs in the town you'll actually buy in, and how your property fits into that picture. This guide looks at Cyprus through the eyes of someone who owns there.

What it costs to live in Cyprus

Day to day costs in Cyprus are generally lower than in the UK and Western Europe, and well below major North American cities. A couple living comfortably outside the most expensive parts of Limassol will typically find groceries, utilities, eating out and transport noticeably cheaper than an equivalent lifestyle in London, Toronto or a major US city.

Imported goods and premium international services cost more, and Limassol's prime seafront developments come with city level pricing for both property and amenities. Paphos and Larnaca are more moderately priced, with established international communities and everything you'd need for daily life.

When you compare properties, include service charges in your living costs. A development with higher monthly fees may offer pools, gardens and security that suit your lifestyle, but it's worth knowing the full monthly figure before you buy.

No annual property tax

This is where Cyprus really stands out for owners. There's no annual property tax, abolished in 2017, whatever your property is worth. For retirees and second property owners, that's one less recurring bill to think about. There's no inheritance tax either. Our property tax guide explains the taxes that apply when you buy.

Retiring in Cyprus

Cyprus is one of Europe's most popular retirement destinations, particularly for British and European retirees, with a large, long established community based around Paphos.

Moving to Cyprus

Moving here is straightforward. Residence permits are available to those with a stable pension or independent income, English is spoken throughout daily life and professional services, and the island enjoys some of the highest sunshine hours in Europe.

Pension tax

Retirees who become tax resident can choose to pay a flat 5% tax on foreign pension income above €5,000 a year, which makes Cyprus one of the most tax efficient places in Europe to retire.

Healthcare

Healthcare is a real strength. Cyprus has a public healthcare system, GESY, alongside a well developed network of private hospitals and clinics, and private health insurance is widely used by international residents.

Choosing the right location

For retirees, the right location often comes down to healthcare access and community. Towns with an established international population, good private medical facilities and amenities within walking distance, Paphos above all, tend to suit long term living better than remote plots, however good the view.

Where to buy in Cyprus

Limassol

Limassol is for buyers who want a lively, cosmopolitan city all year round, with the best restaurants, amenities and international business community on the island. It's the most expensive place to buy, with the strongest rental demand to match.

Paphos

Paphos is the natural choice for retirees and lifestyle buyers, offering a slower pace, a large expat community and beautiful coastline and countryside.

Larnaca

Larnaca offers the most accessible prices, with the island's main airport on the doorstep and major investment transforming the waterfront. It's increasingly popular with buyers looking for value and growth.

Each has its own character. The right choice depends on whether you're buying to live, to let or a bit of both.

Frequently asked questions

Is Cyprus cheaper to live in than the UK?

Generally, yes. Everyday costs such as groceries, utilities, eating out and transport are typically lower than in the UK, although imported goods and prime areas of Limassol can be more expensive.

What is the cheapest place to live in Cyprus?

Larnaca and Paphos are more affordable than Limassol for both property and living costs, while still offering good amenities and established international communities.

Is Cyprus a good place to retire?

Cyprus is one of Europe's leading retirement destinations, with year round sunshine, widely spoken English, good private healthcare, no annual property tax, no inheritance tax and a favourable tax rate on foreign pensions.

How is my pension taxed if I retire to Cyprus?

Tax residents can choose to be taxed on foreign pension income at a flat 5% on amounts over €5,000 a year, or under the standard income tax rates. A tax adviser can tell you which works out best for you.

Can I retire to Cyprus from the UK?

Yes. Since Brexit, UK nationals need a residence permit to live in Cyprus, which is available to those who can show a stable pension or independent income. Requirements are set by the government, so check the current criteria before you apply.

What is healthcare like in Cyprus?

Cyprus has a public healthcare system called GESY and a strong private sector with modern hospitals and clinics. Many international residents also take out private health insurance.

Do people speak English in Cyprus?

Yes. English is widely spoken across the island, including in shops, restaurants, medical services and legal firms.

Where do most British expats live in Cyprus?

Paphos has the largest and longest established British community, although Limassol and Larnaca also have sizeable international populations.

Are there ongoing costs when I own a property in Cyprus?

There's no annual property tax. Your main ongoing costs are service charges on managed developments, utilities, insurance and small local authority fees.