Retirees advised to consider Cyprus

Retired Britons who wish to move abroad have been advised to consider setting up home in Cyprus.

The Mediterranean island was recommended by ShelterOffshore.com on the strength of its financial attractions, such as various tax breaks.

For example, the website said that some expats may be entitled to avoid paying inheritance tax, while the state takes just five per cent of a person's pension income.

ShelterOffshore.com added that the cost of living in Cyprus is also much lower than in the UK, particularly in places located away from major tourist resorts.

Commenting on the market, the website remarked: "The sun-kissed Mediterranean paradise is a tax haven for retirees."

In addition, it stated that the island offers an "exceptional" standard of living to foreign nationals.

This comes after Gulf Weekly said Cyprus is "firmly in the top slot" for Britons who wish to retire to foreign shores.