Guide on retirement in Cyprus

Parent Category: ROOT Published: Thursday, 31 December 2020 Print
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How to retire in Cyprus? 

Everybody has the right to receive a pension in Cyprus. It does not matter If he/she has citizenship in another country.

To get it, you need only be more than 65 years, having legally worked in Cyprus for at least thirteen years, and timely making deductions from your salary to the Social Insurance Fund.

 

Cyprus is paradise for retire 

green leafed forest trees

A healthy climate. There are 340 days of sunshine a year, dry climate, mild winters - ideal conditions for people of age suffering from rheumatic diseases. 

High-quality medical care. The highest standards of medical care, modern clinics with the latest equipment, and affordable prices for medical services are important benefits for retirees. 

Good ecology and no oversupply of cars. There are no large factories and industrial enterprises in Cyprus, therefore the ecological situation on the island is favorable. 

Low cost of living. Prices for food, things, furniture, as well as a variety of services in North Cyprus are affordable, which is important for people with low income. 

Low crime rate. In Cyprus, high-profile incidents are rare, making it ideal for a quiet life without fear and stress. 

Tax system. Since 2000, the inheritance tax has been abolished in the country. 

 

Who can receive the pension in Cyprus? 

The person must pay to the Social Security Service of the Republic of Cyprus as a payer of social tax, regardless of the type of social insurance. It can be: 

1) employed 

2) those who worked on a self-employment system 

3) persons who are insured voluntarily. 

 

Conditions of receiving a pension on Cyprus

  • The person has been a social taxpayer for at least three years 
  • The total wage he receives must be at least 156 times the weekly base wage 
  • An applicant for a pension benefit is eligible to receive it from the age of 63 

 

Pension sizes 

The pension benefit is divided into two parts: basic and supplementary. The size of the basic benefit is determined based on the average weekly salary from which social payments are made to the Social Insurance Fund. 

The basic pension is 60% of the average salary, provided that the pensioner has no dependent persons on the maintenance, 80% - if there is one dependent person, 90% - if there are two dependent persons, and 100% - if there are three or more dependent persons. 

 

Payment Methods 

The old-age pension benefit is paid at the end of each month for which the pension is due to be paid. A paycheck is sent to the recipient's residence address, or money is transferred to the pensioner's bank account (in this case, an application must be submitted with a request to transfer the pension benefit to a bank account). The paycheck must be cashed within six months of receiving it. 

The minimum amount of the weekly insured income is equal to the basic insured income is EUR 174.38

The maximum amount of weekly insured income is EUR 1,046. Also in Cyprus, there are bilateral agreements with the UK, Greece, Egypt, Canada, Australia, Austria, Slovakia, Czech Republic, Switzerland, the Netherlands, Bulgaria, Serbia, and Syria, according to which university studies or work experience in one of these countries will be counted in Cyprus. 

 

Pension calculation formula in Cyprus 

Pension = basic part + additional part

Base part = number of basic insurance units * minimum amount of income subject to insurance * average number of insurance units per year * 0.6 * 4 

Additional part = number of all insurance units * minimum amount of income to be insured * 0.15 * 4 

 

Outcome 

It is very important to think about old age in advance and invest your money in a social insurance fund in Cyprus. Cyprus has an excellent climate and not expensive prices for food and real estate. This is a great option to have old age there. Receiving a pension in Cyprus means providing yourself a decent old age. Our company will help you arrange everything correctly and get a pension in Cyprus quickly and easily.

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