Filenews 22 October 2025 - by Theano Thiopoulou
When it's time to retire, a first thought is to find the ideal destination for a better quality of life, healthcare, security, and even tax benefits. Cyprus seems to be in the preferences of many foreign pensioners, who want to leave their country and live somewhere else, after the end of their working life.
Rising life expectancy (a baby born in 2021 is expected to live, on average, more than 25 years longer than a baby born in 1950), improved moving abroad options are changing the landscape of international retirement migration, according to the Global Retirement Report 2025.
The best countries for relocation are Portugal, Mauritius, Spain, followed by Uruguay and Austria. Cyprus is in 14th place among 44 states examined by the report and Greece is in 12th place. It is noted that Europe, with its well-established infrastructure and high standard of living, is known for its relatively high tax rates. Countries such as Austria, France and Slovenia have maximum rates that skyrocket to 45% or more. However, several European countries are actively seeking to attract retirees through special incentives. Southern Italy, Greece, Malta and Cyprus stand out in Europe for the benefits they offer to foreign pensioners, according to the report.
Italy and Greece, for example, offer a flat 7% tax on foreign pensions for eligible pensioners. Italy's program is limited to some southern municipalities and lasts for nine years, while Greece's status is valid for up to fifteen years. Malta applies a flat tax of 15% on foreign income if and only that is shipped into the country, making it particularly attractive to retirees who are able to structure their finances accordingly. It is also worth mentioning, Cyprus taxes pension income from abroad at just 5%, further highlighting the diversity that exists within Europe. The report notes that in an effort to attract people with high net worth, nearly two-thirds of countries, 61%, offer personalized tax benefits for retirees, including Greece, Malta and Cyprus.
The report states, among other things, that as the prospect of retiring abroad becomes more and more attractive, the tax systems of potential host countries have played a leading role in shaping the migration of pensioners. While climate, culture and healthcare have traditionally topped the list of factors motivating retirees, the reality is that the way a country views pensions and income from abroad can affect a retiree's quality of life. For many, the ability to maximize pension income and minimize tax liability is now as important as finding sunny weather.
For pensioners, the lack of a clear or feasible path to citizenship for the country they wish to settle in can be a significant disadvantage, as it limits long-term integration and full enjoyment of rights and social benefits in the country of destination. As a result, programs with clear, achievable pathways to citizenship are much more attractive. Analysis of the data recorded by the report shows that about 11% of countries require seven to eight years to obtain citizenship and Greece and Cyprus are in this category.
Equally important, according to the report, is that international retired immigrants typically possess a high level of education, with a significant proportion holding university degrees and extensive previous experience living or working abroad.
