Cyprus offers tax advantages for retired expatriates, with a flat rate of 5% on any income over CYGBP2,000. Double taxation agreements exist between Cyprus and many other countries, and if covered by one of these agreements pensions and bank interest can be paid without being taxed in the country of origin.

The relatively low cost of living, especially in the north of the country, makes Cyprus a very attractive location for people with an overseas pension or other income.