UK pension and tax in Cyprus

The short answer

• UK private and workplace pensions, and the UK State Pension, are taxed only in Cyprus once you are resident there. Each year you choose normal Cypriot rates or a flat 5% on the amount above €5,000.
• UK government service pensions (civil service, armed forces, police, and NHS or teachers' schemes paid from public funds) stay taxable only in the UK.
• Non-dom status means no Cypriot tax on most dividends and interest for up to 17 years.
• Cyprus has no inheritance tax and no wealth tax.

When you become tax resident in Cyprus

• 183-day rule: more than 183 days in Cyprus in a calendar year.
• 60-day rule: at least 60 days in Cyprus, no more than 183 days in any other single country, a business, job or directorship in a Cyprus company during the year, and a home in Cyprus that you own or rent. From 2026 you no longer need to show you are not tax resident elsewhere.
• Every tax resident aged 25 or over now files a Cypriot tax return.

How your UK pensions are taxed

Under Article 17 of the UK-Cyprus Double Taxation Convention (in force since 2019), pensions paid to a resident of Cyprus are taxed only in Cyprus. That covers private and workplace pensions and the UK State Pension. Article 18(2) is the exception: government service pensions are taxed only in the UK, unless you are both resident in and a national of Cyprus.

Normal rates assume the pension is your only income: 0% up to €22,000, 20% to €32,000, 25% to €42,000, 30% to €72,000 and 35% above. The 5% option taxes everything above €5,000 at 5%; you choose each year, so below about €28,000 normal rates are cheaper. Lump sums from commuting a pension are exempt from Cypriot income tax. The 2.65% GESY contribution applies on top unless you hold an S1.

Non-dom status

A British mover is not domiciled in Cyprus for tax until they have been tax resident for 17 of the last 20 years. Until then, dividends and interest are free of the special defence contribution, and from 2026 there is no defence contribution on rent for anyone. From 2026 non-dom status can be extended for up to two further five-year periods by paying €250,000 for each period.

Property, capital gains and inheritance

• Capital gains on Cyprus property: 20% of the gain, after a lifetime exemption of €150,000 on your main residence, or €30,000 on other property (raised in 2026).
• No annual property tax in Cyprus since 2017, and no inheritance or wealth tax.
• UK rental income: the UK can still tax rent from a UK property. Cyprus taxes your worldwide income with credit for the UK tax. Register with HMRC's Non-Resident Landlord Scheme.
• UK inheritance tax has followed residence since 6 April 2025. After leaving, long-term UK residents stay in scope for 3 to 10 years depending on how long they lived in the UK, and UK property always stays in scope.