Where to Retire Abroad For Favourable Tax Treatment

Taking a look at where expats can save on tax when they retire abroad

Expats of working age are restricted in their choice of overseas destination because they generally need to find employment to fund their new life abroad.  Retirees on the other hand are not so restricted, and the criteria they base their choice of destination on are likely to be related to quality of life and cost of living.

So, in this article we’ll look at where you can retire abroad if you want favourable tax treatment, because if you’re taxed less on your pension income it will go far further and thus afford you a better quality of life!

A new league table compiled by KPMG looks at which nations in the world offer the most favourable tax treatment to expatriates, and according to the results, Cyprus, which is already a popular choice with retirees, has the most favourable tax regime in the whole of Europe!

The KPMG league table was compiled by surveying over 400 accountants, tax advisers and taxation professionals who work in multinational companies across Europe, and everything from the level of tax charged to the consistency in interpreting taxation owed were praised when it came to a discussion of Cyprus.  Cyprus came out ahead of even Ireland and Switzerland, and this just cements the nation in the number one spot for thousands of would-be British retirees.

With the tax box ticked – note, expat retirees pay a maximum of 5% on their pension income in Cyprus – it’s time to look at what else the island nation has to offer retirees: -

• Cyprus has over 300 days of sunshine every year
• The island is in the European Union, thus benefitting from the stability that membership offers a country, however it is still setting its own taxation levels, making it more competitive
• The standard of living in Cyprus is first world and Western – major European supermarkets and department stores make the transition from living in the UK to retiring in Cyprus even easier!
• The pace of life is slower in Cyprus and there is more emphasis on enjoying life, spending time with family and friends and appreciating the environment than there is in the UK
• Despite the strong euro effect at the moment, pensioners generally find that the cost of living in Cyprus is attractive with local produce being sold cheaply at markets for example, and eating out costing a fraction of what it does in the UK
• The properties available for sale are generally well built and attractive
• Cyprus is a Mediterranean island – therefore you benefit from the beautiful scenery associated with the Med region, the fabulous climate, the excellent cuisine and stunning beaches
• Cyprus is already a popular choice with retirees, therefore a newly arrived retired person will quickly meet up with like minded people, find activities to interest them and generally settle in to their new, low tax lifestyle!