How is a foreign pension taxed in Cyprus?
Short answer
A Cyprus tax resident can choose to pay a flat 5% on foreign pension income above €5,000 a year instead of the normal rates. The choice is made year by year.
From 1 January 2026, lump sums from approved pension funds in the UK, the US, Canada, Australia, South Africa, Switzerland and the EEA countries outside the EU are tax-free in Cyprus.
Which country may tax a pension in the first place is set by the tax treaty with the country that pays it. The answers by country cover the UK, the Netherlands and Germany.
Sources
- Income Tax Law 118(I)/2002, consolidated text (CyLaw) cylaw.org
- Law 67(I)/2026 (CyLaw) cylaw.org
Information, not advice. This answer describes the published position as it stands on 12 October 2026. Requirements, fees and processing times set by the authorities change from time to time; the current position is confirmed before any work starts.
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