Why a move to Cyprus makes sense in 2026

Cyprus is proving a magnet for overseas buyers who feel priced, taxed or rained out of the UK. See why we’re coming here, how to move to Cyprus (and why it’s better than Dubai!).

British and other expats soon feel like Cyprus is a home from home. They drive on the left, speak English and even use British-style electric plugs. Add to that its year-round sunshine, Mediterranean lifestyle and friendly tax policies, and no wonder it’s proving a popular option for retirement or remote workers. Recent years have seen its international market broaden. More foreign nationals are discovering the island and why it’s so much more than just an exciting tourism destination.

A gateway to the EU, Cyprus has a low taxes, cheap golden visas and beautiful properties. It’s keen to grow as an international business hub and is laying out the red carpet.

Let’s look at what makes a move to Cyprus especially attractive for non-EU citizens in 2026, a year that the island assumes the EU Presidency.

Home from home for British moving to Cyprus

From its years as a colony, and still with British military bases on the island, Cyprus has strong ties with the UK. It’s regarded generally as a very safe and familiar place to live.

You drive on the left there, English is widely spoken and treated as a second language. The island operates under a common law system based on English law and you might catch sight of an old-style British post box! It also means many of the shops and amenities are geared towards British expats and you’ll see brands from the UK high street in Cyprus’s larger towns.

Strategic location in a global market

Similar to Dubai, Cyprus is a handy base for Europe, the Middle East and North Africa. It’s tucked in the eastern corner of the Med so only a four-hour flight from the UK, three hours from the UAE and an hour from Egypt, Jordan, Israel or Lebanon.

Away from the beach resorts and sweet villages, the island’s location is helping it to grow it as a centre for international business. Traditional sectors include shipping, tourism, banking, financial and professional services. Today, new sectors like energy, investment funds, development, education and wellness tourism are giving its economy an exciting new edge.

Luxury living in Cyprus

For anyone looking for a high-end lifestyle, Cyprus delivers in several locations.

One hub for economic activity and international investors is Limassol. The Marina development was the island’s first luxury project to attract super-yacht owners. The wider area has since become a hot spot for wealthy homeowners with a skyline of new high-rises complementing its pretty promenade. A recent landmark development there is the €400million Limassol Greens, a master-planned luxury golf community.

But for many buyers, especially from the UK, western Cyprus and the Paphos area is top choice. There are several luxury developments, including the new golf and spa resort at Minthis Hills.

Pay less tax when you move to Cyprus

Move to Cyprus in 2026 and you should see your tax bill plummet and disposable income rise. The island has one of the most favourable tax systems of all popular European destinations, especially for expats. For peace of mind, it has double tax treaties with the UK and US.

The Cyprus Tax Reform 2026 has made it even more attractive. Headline perks for non-Cypriot residents apply to tax on foreign pension income, capital gains and inheritance.

Each year expats can choose one of two ways for their pension income arising outside of Cyprus to be taxed. They can elect for it all to be taxed at a flat rate of just 5%, with a €5,000 tax-free allowance. Or they can be taxed according to Cyprus’s standard personal income tax bands.

Thanks to the 2026 reforms, thresholds rose by around 15% in January. Opting for this route means now your first €22,000 of foreign pension is tax-free. After that, updated rates are 20% on income from €22,001 to €32,000, 25% on income from €32,001 to €42,000, 30% on income from €42,001 to €72,000 and 35% on income over €72,000. Cyprus has also introduced new income tax deductions, linked to household income and family members.

Low rates for CGT and investments

In further good news, Cyprus levies no capital gains tax (CGT) on overseas assets such as property and company shareholdings. While CGT may be payable locally from the sale of property in Cyprus, there are various deductions, exemptions and lifetime allowances that could reduce your liability.

Cyprus charges Cypriot nationals a type of tax called Special Contribution for Defence (SCD) on bank interest, dividends and government bonds. However, expats can enjoy these income classes tax-free for the first 17 years of residency so long as they retain their non-domicile status in Cyprus. As a final benefit, there is no inheritance or succession tax. Combined with changes to UK inheritance tax rules introduced last year, this means many UK expats should be exempt from any inheritance tax in either country.

Simple residency path for a move to Cyprus

Getting residency in Cyprus is a straightforward process and can be done after arrival in the country. For retirees or anyone not needing to work there (which is not allowed with this option), the temporary residence permit is the most common and affordable route.

Known as the Pink Slip, non-EU citizens can apply for this within 90 days of arriving in Cyprus. It allows for an extended stay of up to a year and is renewable annually. Submission of an application is enough to stay in Cyprus legally while awaiting approval. After five years of continuous temporary residency, an applicant can apply for permanent residency. After eight years, you are eligible to apply for Cypriot citizenship.

The key requirements for a Pink Slip include an annual income of €24,000 for the main applicant (plus 20% for a spouse and 15% for a child), proof of savings in a Cypriot bank account (€10,000 for your first year, then decreasing), and proof of property ownership or rental contract.

Fast-track investor and business visas

Alternatively, Cyprus offers a fast-track investment visa to non-EU nationals. To qualify, you must purchase a new-build property worth at least €300,000, and show income of €50,000 per year for the main applicant, plus €15,000 for a spouse. Another option is to invest the same amount in a Cypriot company or units in a qualifying investment fund.

Cyprus also has a visa for entrepreneurs who launch a start-up there or move an establish start-up to the island. Another route for remote workers could be its digital nomad visa, for which the government recently increased available permits.

Schengen Area membership

Cyprus is set to join the Schengen Area by the end of 2026. This will make travel around Europe easier for resident foreigners living in Cyprus. They will enjoy visa-free travel within the Area, which includes 25 European Union states plus Iceland, Liechtenstein, Norway, and Switzerland. More broadly, it is a positive development that cements Cyprus’s EU membership and makes the island more attractive to international relocators and investors.

Need help planning your relocation or property purchase in Cyprus? Speak to one of our local property consultants today to get started.