Giovanni and Francesca, ages 68 and 64, are a retired couple originally from Brescia (Northern Italy). Once their careers were complete, their children grown and their home mortgage finally paid off, they decided to change course and reinvent themselves by moving to Cyprus.
What prompted you to move to Cyprus?
Giovanni: “We were tired of the gray weather, rising costs and the feeling that everything had become more complicated in Italy. We have two good pensions but we dreamed of something else; we wanted a carefree life. We started looking around, and REFRAMED helped us discover a whole new world.”
Francesca: “They opened our eyes. With our pensions, if we relocated, we could save thousands of euros per month in taxes. It seemed crazy to us not to consider the idea.”
Why Cyprus in particular?
Giovanni: “Initially we were thinking of Albania or Greece, but then they told us about Cyprus and we discovered that foreign pensions are taxed at just 5% here. In addition, taxes are very low on investments. To me, as someone who has always had a few ETFs in my portfolio, it seemed like a good idea, considering my interest in fiscal optimization.”
Francesca: “I would add that then the sea is beautiful, the cost of living is sustainable, and we found a very welcoming Italian community. Life is simpler here.”
How did you manage your assets after relocation?
Giovanni: “After our relocation, we relied on REFRAMED and benefited from useful services and a team of professionals created specifically for the management of our portfolio. We did a complete check-up of our assets with them, then they helped us rethink everything: liquidity, investments and goals. After that, an annuity portfolio was created for us, with ETFs and efficient instruments that generate regular coupons.”
Francesca: “We liked the idea of having extra income in addition to our pensions, but without having to worry too much and without eating away at the capital. That way, we know that if we want to leave something to our children one day, it will be there.”
Note: capital gains from the sale of shares are exempt from tax in Cyprus.
And fiscally speaking, how have things changed for you?
Giovanni: “Things have changed a lot. In Italy, between income tax, additional taxes and everything else, a big chunk of our pensions disappeared in taxes. Here in Cyprus, on the other hand, our pensions are taxed at 5%, so basically we pay much less. I would say, doing the math, we save perhaps over 70% compared to before.
But the real breakthrough, for me, was on the returns: in Italy, dividends were taxed at a flat 26%, same with capital gains. Here, however, if you are a tax resident and have ‘non-domiciled’ status, you pay virtually nothing on dividends and interest from foreign investments. That’s huge.
It means that what used to go to taxes now stays in our pockets. And with our ‘free’ returns, we were also able to cover the cost of the paperwork. In the end, not only does it not cost us: it helps us earn more money.”
What is daily life like in Cyprus?
Francesca: “It’s more carefree. We take long walks along the waterfront, eat lunch outdoors all year round and enjoy the weather. We also started taking a Greek language class to socialize better. We occasionally return to Italy to see our grandchildren, but we feel at home here.”
Giovanni: “Private healthcare is very good and affordable. And we never feel alone: the Italian community here is vibrant, lending a hand and exchanging tips. Kind of like a big family abroad.”
Tell us about a typical day
Giovanni: “Our day starts early, around 7 a.m., when the sun is shining on our balcony overlooking the sea. Our apartment is a few minutes’ walk from the beach. We have breakfast with Greek yogurt, local honey and fresh fruit that we buy at the farmer’s market every Tuesday and Friday. The quality of the products here is outstanding, especially Cypriot citrus, which is uniquely flavorful.”
Francesca: “After breakfast, Giovanni often goes down to the corner café where he has made friends with the owner and a group of local retirees. I prefer to go for a walk. Here, the early morning sea air is rejuvenating, I assure you! I often stop to chat with Maria, a Greek lady who sells handcrafted jewelry on the promenade.”
Giovanni: “At lunch we alternate between Italian and local cuisine. We discovered a small family-run restaurant where they make an extraordinary moussaka. The hostess even taught us how to make some traditional recipes such as souvlaki and grilled halloumi. When we want a touch of Italy, we go to a restaurant run by an Italian man from Naples who moved here 20 years ago.”
Francesca: “Afternoons are devoted to our hobbies. I took up painting again after almost 30 years by enrolling in a watercolor class. Giovanni, on the other hand, has taken up fishing and goes out on a boat every Wednesday with a group of locals and other expats. They always come back with some sea bream or sea bass, which we then grill on our terrace.”
How do you handle the practical aspects of daily life?
Giovanni: “To get around, we bought a small hatchback, but we hardly use it. It’s so easy here to take public transportation or just walk. The shopping mall is only 10 minutes from our house, and it has everything we need. There’s also a multiplex that we often go to; the movies are in the original language (English usually) with Greek subtitles.”
Francesca: “Health-wise, we enrolled in a private clinic. With about 100 euros a month we have health insurance that covers almost everything. Our doctor speaks excellent Italian because he studied in Rome. It really gives us peace of mind to know that we are being properly looked after.”
Giovanni: “We opened a bank account where we deposit our pensions. Online banking is efficient and in English so it’s no problem at all. Plus, there’s a branch right below our house where the manager now recognizes us and always greets us with a smile.”
How do you spend your free time and evenings?
Francesca: “Summer evenings, from May to October, are magical here. We often get together with friends for sunset happy hours. The marina is beautiful, full of bars and restaurants. There are also lots of cultural events, outdoor concerts and festivals. Last year we went to the Wine Festival, a local tradition where you can taste Cypriot wines such as Commandaria, which is the oldest wine in the world still being produced.”
Giovanni: “In winter, when temperatures drop to around 15 to 18 degrees Celsius, we take the opportunity to explore the hinterland. We’ve discovered charming villages in the Troodos Mountains, such as Omodos and Kakopetria, which feel like they are frozen in time. We go there with a group of Italian and Cypriot friends whom we met through an association that organizes trips and events for resident foreigners.”
Francesca: “And then we have our weekly routine: Monday evenings we go to our Modern Greek class at the city library, Thursday evenings during the warm season it’s a movie in the square, and Sunday is our favorite ritual: a meze lunch at a traditional tavern. They serve at least 20 different dishes there, fromhummus to feta, meatballs to pita. It’s an experience that lasts for hours!”
How do you stay in touch with Italy?
Giovanni: “Technology helps a lot. We have regular video calls with our children and grandchildren. We also created a family WhatsApp group where we share photos and videos of our new life. And then we go back to Italy twice a year, usually for Christmas and in the summer.”
Giovanni: “And let’s not forget soccer! I always watch Serie A games at the bar where fans of various nationalities gather. Last Sunday there were 20 of us Italians watching the derby, complete with pizza and beer!”
What do you appreciate most about your new life?
Francesca: “The slower pace and the quality of personal relationships. Here you still stop and talk, the stores are small and the shopkeepers recognize you and ask how you are. At the supermarket where we do our shopping, the cashier knows what our favorite products are by now.”
Giovanni: “And the weather, of course. We can have breakfast on the terrace even in January, perhaps with a light jacket. And then there’s the feeling of security: here we often leave the front door unlocked when we go out, which is unthinkable in Brescia. We’ve never felt like we were in danger, even late at night.“
What advice would you give to those considering making the same leap?
Giovanni: “Do your research and get help from those who do this for a living. We would never have been able to learn everything about taxation, investment and paperwork on our own. With REFRAMED and its wide network of professionals, both in Italy and Cyprus, we felt supported. And today we can say that it was really worth it.”
Francesca: “Retirement is a chance to start again, not to stop. And with a little courage and the right people beside you, your quality of life can really improve. Not only with more money in your pocket, but also with more peace of mind.”
Prima di un espatrio in uno dei molti Stati da noi proposti, organizziamo un appuntamento individuale.
L'appuntamento consiste nelle seguenti attività:
- analizzare le tue aspettative;
- valutare la tua situazione pre-espatrio ed eventuali criticità/ostacoli;
- stabilire la fattibilità del tuo trasferimento all'estero;
- individuare i pro e i contro della destinazione (una o più) in merito alle tematiche più varie: tassazione, affitti, costo della vita, clima, sicurezza, assistenza sanitaria, etc;
- programmare il percorso di trasferimento: tempistiche, modalità, costi.
