Retire in Cyprus: the Category F permit income requirement and a lifetime annuity
Written by Hans Goldstein, licensed insurance agent · CA 4273294Short answer: To retire in Cyprus, the usual route is a Category F immigration permit (permanent residence, the Cyprus retirement visa), which requires a secured annual income from abroad of at least €9,568 for a single applicant (about $933 a month at $1.17 per euro) and €14,181 for a married couple (about $1,383 a month), because each dependent adds €4,613; these are the Migration Department’s published minimums in 2026. The department lists pensions, dividends, deposit interest and rents as qualifying income, and a life-only annuity is the textbook “secured” income. From 2026 Cyprus taxes the first €22,000 of a resident’s income at 0%, and it has no wealth tax.
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The Cyprus retirement visa requirement: Category F
For Americans who want to retire in Cyprus, Category F is the standard route. It is one of six categories of immigration permit under Regulation 5 of the Aliens and Immigration Regulations. In the Migration Department’s words, it is for persons who “possess and have fully and freely at their disposal from abroad a secured annual income of an appropriate amount to allow them a decent living in Cyprus,” without working or doing business there. The published minimums:
Single or married: how much income you need to retire in Cyprus
| Household | Per year | Per month | About USD a month | Whose income |
|---|---|---|---|---|
| Single applicant | €9,568 | €797 | $933 | The applicant |
| Married couple (spouse as dependent) | €14,181 | €1,182 | $1,383 | The applicant, covering the spouse |
| Each dependent child | +€4,613 | +€384 | +$450 | The applicant |
USD figures assume €1 = $1.17, a planning rate; the ECB reference rate was $1.1225 on 2 October 2026, so these dollar figures include about 4% of headroom. Dependents are a spouse and children under 18. The application fee is €500 for everyone on the application, plus €70 per person if an alien registration certificate is needed.
Two things set Category F apart from the other countries in this series. It is permanent: the residence right has unlimited validity, and the card is simply replaced every ten years. And the figures above are minimums; the department’s own test is an income that allows a “decent living in Cyprus,” and law firms point out that real living costs run well above €9,568 a year. Applying with comfortable income rather than the bare floor is the sensible plan.
When only one spouse has income. Category F is built that way: the applicant shows his or her own secured income, and a non-earning spouse is listed as a dependent, which adds €4,613 to the applicant’s figure. So the spouse with the pension applies. If that income falls short, buy the lifetime annuity in the applicant’s name, priced on his or her own age and sex, while you are both still US residents. Ask the department whether income in the dependent spouse’s name can be added if you would rather split it.
A US tax note (general information, confirm with a tax adviser): paying for a spouse’s annuity is a gift. Gifts between two US-citizen spouses are unlimited. To a spouse who is not a US citizen, the 2026 annual exclusion is $194,000; above that you file Form 709, and generally no tax is due.
What you file, and why “secured” favors an annuity
The department’s Category F document list asks for, among other things:
- A declaration of secured annual income, with original documents and an affidavit.
- Original bank statements from an account in Cyprus.
- A title deed or sale contract with proof of payment, or a rental agreement, for your home in Cyprus.
- Criminal record certificates, marriage and birth certificates, and medical test results, certified and officially translated.
The income has to come from abroad, and the department lists pensions, dividends from shares, interest on fixed deposits and rents as examples. Dividends can be cut and deposit rates fall. A life-only SPIA from a US insurer pays a contractual amount for the lifetime of the annuitant, which is about as close to “secured” as private income gets. The list does not name annuities, so confirm with the Migration Department or a Cyprus immigration lawyer that your insurer letter and affidavit will be read as secured income.
Which annuity counts. A life-only SPIA, a joint and survivor SPIA, or an existing deferred annuity or MYGA converted to lifetime payments. A period-certain annuity, an income rider (GLWB) where an account value can still be cashed out, or an annuity still accumulating reads as savings, not secured lifetime income. Cyprus also accepts deposit interest and dividends, so the annuity is the steadiest proof, not the only one.
Social Security alone often clears the €9,568 floor. The SPIA’s role in Cyprus is usually to lift a thin or market-dependent income to a level the committee will see as a decent living, or to bridge the years before Social Security starts.
Why I write about this. My mom is Norwegian, my dad is American, and they’re planning the move from the US to Norway. My mom is the sponsor (the host, or “reference person” in UDI’s words), so Norway’s income test falls on her income, not my dad’s. UDI told us in writing that money in an account does not count as income, and only lifelong income does. Their savings were not the problem; the paperwork wanted a monthly number in the host’s name. The rules in Cyprus are different, but the problem is the same one many retirees hit: the income test, not the net worth. I’m writing this to help others in the same boat as my parents. Read how we worked through the Norway income requirement.
In the same boat? Let’s run your numbers
See roughly what a lifetime annuity would cost to close your income gap, then get my personal read by email. I can help while you still live in the US.
Estimates use the September 9, 2026 ImmediateAnnuities.com payout survey (life only) and a 15% cushion. Illustrative, not a quote.
Example: a 62-year-old American moving to Cyprus
Payout at age 62 from the ImmediateAnnuities.com survey of September 9, 2026, life-only, per $100,000 per month: man $603 average ($660 best quote), woman $582 average ($637 best quote). Premium = monthly target / payout per $100,000 x $100,000, rounded. Illustrative, not a quote.
| Age 62, no other income | Monthly target | Premium, average payout | Premium, best quote |
|---|---|---|---|
| Single man, legal floor | $933 | $155,000 | $141,000 |
| Single woman, legal floor | $933 | $160,000 | $146,000 |
| Couple, legal floor (single-life annuity on the husband) | $1,383 | $229,000 | $210,000 |
| Couple, $3,000 a month living budget (same basis) | $3,000 | $498,000 | $455,000 |
Social Security can start at 62 and often covers the legal floor by itself, so the SPIA’s job in Cyprus is usually to lift income toward the “decent living” standard. Add 10 to 25% headroom: the Category F figures date from the Cyprus pound era, and a weaker dollar shrinks a dollar annuity’s euro value. A joint and survivor annuity for a couple pays less per dollar than single life, so get a quote.
No income retest, but keep residence
Because Category F is permanent, there is no periodic income renewal like Portugal or Greece. The permit does lapse if you do not take up residence in Cyprus within one year of approval, if you acquire permanent residence elsewhere, or if you are absent from Cyprus for two years. A lifetime annuity still matters after approval: it is the income you live on, and it does not depend on markets or on how fast you spend savings.
How the annuity is taxed: Cyprus and the US
Cyprus reformed personal income tax from January 1, 2026. For a Cyprus tax resident:
| 2026 chargeable income (EUR) | Rate |
|---|---|
| 0 to 22,000 | 0% |
| 22,001 to 32,000 | 20% |
| 32,001 to 42,000 | 25% |
| 42,001 to 72,000 | 30% |
| Over 72,000 | 35% |
The Cyprus side
A couple living on Social Security plus a modest annuity may owe little or no Cyprus income tax. Cyprus also offers a separate option for pensions received from abroad for services rendered outside Cyprus: 5% on the amount above €5,000 a year (raised from €3,420 for 2026), with a yearly choice to use the normal bands instead. That option is written for pensions earned by work, so Social Security and employer pensions fit it; a purchased annuity very likely does not, and the Tax Department does not publish how it classifies a purchased US life annuity, so get a Cyprus tax adviser’s written view. Residents also pay the General Healthcare System contribution, charged to pensioners at 2.65% of pension income.
The US side
As a US citizen you stay taxable on worldwide income wherever you live. A US single premium immediate annuity bought with after-tax savings is taxed under IRC 72: an exclusion ratio makes part of each payment a non-taxable return of your premium until the premium is recovered. If you bought it with IRA money, every payment is taxable. The foreign earned income exclusion does not cover annuities (IRC 911(b)(1)(B)(i)). Foreign tax on the payments can be credited on Form 1116, through the treaty’s relief article where there is one. Since January 1, 2026, a US citizen with a foreign residence address cannot opt out of federal withholding, even if payments go to a US account (IRC 3405(e)(13), Treas. Reg. 31.3405(e)-1). Withholding is a prepayment, not extra tax. An annuity from a US insurer is not reported on FBAR or Form 8938, and it is not a PFIC.
The treaty
Article 23(2) of the US-Cyprus treaty says annuities, defined as a stated sum paid “during life, or during a specified number of years” for adequate and full consideration, are taxable only in the country where the recipient lives, so Cyprus taxes first. The saving clause (Article 4(3)) lets the US tax its citizens anyway, and Article 5 relieves double taxation so Cyprus tax can be credited on Form 1116. US Social Security is taxable only in the US (Article 24), and that rule survives the saving clause.
Net result
With a 0% band up to €22,000, the US tax is usually the binding one, and often the only income tax on the annuity, plus the healthcare contribution. Compared with drawing down savings, a SPIA in Cyprus is close to tax-neutral. See how European countries tax a US annuity.
Does Cyprus have a wealth tax?
No. PwC’s Cyprus summary lists no net wealth tax (reviewed August 2026), so a US annuity is outside any wealth tax in Cyprus. The annuity’s role there is secured income for the permit and a budget that does not depend on markets.
Checklist
- Buy the life-only SPIA while you still have a US address; US insurers generally will not issue to someone already living abroad.
- Keep a US bank account for the deposits and move living money to your Cyprus account. With a foreign residence address you cannot opt out of federal withholding (IRC 3405(e)(13)); withholding is a prepayment, not extra tax.
- Start payments 3 to 12 months before applying so the income has a track record.
- Get an insurer letter stating the amount payable “for the lifetime of the annuitant,” no cash value, certified and officially translated, to support your affidavit.
- Arrange a lease or purchase in Cyprus and open a local account before filing in Nicosia.
The trade-offs, once
A SPIA is irrevocable, level unless you add a cost-of-living rider, paid in dollars while you spend euros, and lower per dollar at younger ages. It is backed by the issuing insurer’s claims-paying ability. Size it to a realistic budget gap and keep the rest of your savings flexible.
Married? Make the income outlive either of you. In Cyprus the main applicant shows the income and the spouse joins as a family member, so the annuity sits with the main applicant. If a single-life annuity is on one spouse and that spouse dies first, the payments stop, and the surviving spouse may have to show income of their own at the next renewal. A joint and survivor annuity, which keeps paying until the second death, or a separate annuity on each spouse closes that gap. Joint and survivor pays less per dollar than single life, so ask for both quotes and compare.
Frequently asked questions
Free annuity gap analysis for Cyprus. Tell me your ages, your Social Security or pension, and whether you are single or a couple. I will show how far your income is from the Cyprus requirement and what a lifetime annuity would cost to fill the gap, in the sponsor’s or main applicant’s name where that matters.
Related reading
- Moving abroad on a fixed income: hub
- How European countries tax a US annuity
- Greece financially independent person visa
- Malta Retirement Programme
- Portugal D7 visa
- Moving abroad before 59 and a half
- Immediate annuity calculator
Sources
- Cyprus Migration Department: Immigration Permits (categories A to F, fees, duration)
- Cyprus Migration Department: Immigration Permit forms and Category F document list
- PwC Worldwide Tax Summaries: Cyprus, taxes on personal income (2026 bands)
- PwC Worldwide Tax Summaries: Cyprus, income determination (foreign pensions)
- US-Cyprus income tax treaty (IRS text), Articles 4, 5, 23 and 24
- PwC Worldwide Tax Summaries: Cyprus, other taxes (no wealth tax, GHS)
- PwC Worldwide Tax Summaries: net wealth tax rates by country
- IRS Rev. Proc. 2025-32, section 4.42 (2026: $194,000 gifts to a non-citizen spouse)
- GK Law Firm: Cyprus Category F permit
- 26 U.S.C. 3405 (withholding on pensions and annuities)
- Treas. Reg. 31.3405(e)-1 (no withholding opt-out with a foreign residence address)
- ImmediateAnnuities.com: immediate annuity rates by age (survey of September 9, 2026)
Goldstein & Co. LLC dba Goldstein Insurance Services · Hans Goldstein, licensed insurance agent, CA lic. #4273294 · NPN 20602398 · 213-414-2808 · hans@hansgoldstein.com
Education, not tax, legal or immigration advice. Rules, thresholds and exchange rates change; confirm with the consulate or immigration authority and a local tax adviser before you act, and get answers in writing. Hans Goldstein is a licensed insurance agent (CA 4273294) and can only offer annuities to residents of states where he is licensed. Annuity payments are guaranteed by the issuing insurer’s claims-paying ability, not by any government. Payout figures are illustrations from a published survey, not quotes. Immediate annuities are generally irrevocable.