Comprehensive research conducted by The Homebuyer and Property Investor Show compared the top ten locations for UK pensioners to retire abroad. The results saw Cyprus and Panama coming tops based on tax, ease of residency, healthcare and average property costs.
It is fact that the UK is seeing large numbers of Britons leaving the country to live overseas. Years of being in the UK housing market has left many retirees with large amounts of equity in their homes and a desire for better things.The office for National Statistics in the UK show that 200,000 people left the country for good last year, the huge majority of these were retirees.
The report shows the vast differences in taxation, inheritance laws and the availability of healthcare, how many of us know that France for example has income tax rate of up to 49.8% and inheritance tax rate of 30%.
Cyprus tops the list of destinations because it has an income-tax rate of just 5% on pensions for retired residents, as well as low property prices and no inheritance tax. It also scores highly on related issues such as ease of gaining residency, low property buying and selling costs and benefits for pensioners.
Nick Clark, managing director of Homebuyer Events, said: “Not only does Cyprus offer a warm, sunny climate, it also benefits from favourable taxation and healthcare policies.”
Panama, now infamously the chosen destination of “back from the dead” canoeist John Darwin and his wife Anne, comes a close second. This is largely thanks to its pensionado scheme, which offers attractive discounts for pensioners.
Property in Cyprus start from about £77,000 – although the island is rapidly catching up with prices in more established retirement hotspots such as France and Spain. Stamp duty is 0.15% for properties worth up to about £130,000 and 0.2% on more expensive homes, compared with 1% to 4% in Britain. However, there may be property transfer fees of 3% of the first £65,000 or so, 5% on homes worth between £65,000 and £130,000 and 8% on those valued at more than £130,000
