Cyprus 'will keep attracting retirees'

Cyprus is likely to remain a popular destination among British retirees, property analysts have stated.

According to ShelterOffshore.com, the Mediterranean island offers the "perfect blend" of sunshine and financial benefits.

Therefore, it believes the country will avoid the worst effects of the global credit crunch and stay popular with lifestyle buyers.

ShelterOffshore.com said Cyprus' favourable tax regime is one of its main attractions to retirees, as older people are charged only five per cent on their pension income.

In addition, it stated that authorities in the country have scrapped inheritance tax, which means the government cannot claim a chunk of a person's estate upon their death.

The website commented: "There are fundamental reasons why Cyprus will remain a popular choice with people seeking a move overseas."

This comes after the Independent revealed that the island's housing market is holding up in the face of problems in the global economy.