Cyprus ranked among the world’s top 10 countries to live in according to the Nomad Lifestyle Index 2026. The ranking was prepared by consulting firm Nomad Capitalist, which helps entrepreneurs and investors choose countries for relocation, plan taxes, obtain residence permits, and secure second citizenship. However, the ranking primarily reflects the interests of people considering relocation together with their business and capital. Therefore, a high position on the list does not necessarily mean that the country will be the best option for every resident or foreigner.
The ranking assessed countries according to five criteria. Each accounted for 20% of the final score, with a maximum possible result of 100 points. The categories included nature and climate, taxes, opportunities to obtain residency and citizenship, safety and freedom, as well as quality of life and infrastructure. Individual indicators included air quality, the risk of extreme weather events, cost of living, life expectancy, and internet speed. Cyprus scored 68.42 points out of 100 and ranked sixth among 63 countries.
Residency, Taxes, and Climate: Cyprus’s Main Advantages
Cyprus received its highest score for legal residency options, with 90 points. According to the index, the island offers five pathways to obtain the right to reside, while eligibility to apply for citizenship may arise after seven years, provided that all applicable requirements are met. However, this period does not mean that citizenship is granted automatically. Eligibility to apply and the final outcome depend on compliance with the laws in force.
Cyprus scored 75 points in the taxation category. Among the advantages highlighted by the ranking were 65 double taxation agreements, as well as the absence of property and inheritance taxes in the form considered by the index’s methodology. However, the absence of these specific taxes does not mean that real estate and inheritance in Cyprus are completely exempt from all payments, as other fees and obligations may still apply.
Climate remains another major advantage of the island. Cyprus received a score of 87.1 for the number of sunny days in the relevant subcategory. For people considering relocation from countries with cold and cloudy winters, this may provide an additional reason to choose the island. Taken together, accessible legal residency options, favorable tax features, and sunny weather helped Cyprus enter the top 10 of the ranking.
Air Quality, Infrastructure, and Cost of Living: The Island’s Weak Points
Despite its high overall result, Cyprus received more modest scores in several areas that are important for everyday life. In the “Nature and Climate” category, the island scored 62.9 points. One of the reasons was the concentration of fine particulate matter, known as PM2.5, in the air. According to the data cited in the ranking, the annual average concentration in Cyprus is 11.8 μg/m3. The country received just 33.9 points for air quality. PM2.5 particles are so small that they can penetrate deep into the respiratory system. Since 2021, the World Health Organization has recommended limiting annual average concentrations to 5 μg/m3. This means that the figure cited for Cyprus in the ranking is more than twice the WHO guideline.
According to the European Environment Agency, the current EU limit is 25 μg/m3, while a reduction to 10 μg/m3 is planned by 2030. Therefore, the value of 11.8 μg/m3 is above the future EU limit, although still below the current threshold. At the same time, WHO guidelines and EU legal limits are different measures and should not be treated as directly equivalent. Current air quality readings across the island can be monitored on the official website airquality.gov.cy. It is important to remember that pollutant concentrations vary depending on the area, weather conditions, and time of year.
Another weaker area for Cyprus is quality of life and infrastructure. In this category, the country scored 52.1 points. The assessment took into account life expectancy, cost of living, everyday living conditions, and internet speed. Cyprus received 62.1 points for safety and freedom. These results show that the island’s advantages for relocation do not eliminate everyday challenges. When choosing a country, it is important to consider not only taxes and climate, but also living costs, access to services, infrastructure quality, and environmental conditions.
Which Countries Ranked Above Cyprus?
Monaco took first place in the Nomad Lifestyle Index 2026 with a score of 73.89 points. Andorra ranked second with 73.68 points, while the United Arab Emirates placed third with 73.15. The gap between the three leading countries was less than 0.75 points, meaning their final scores were very close.
Six of the countries in the top 10 are located in Europe. In addition to Cyprus, the leading group includes Malta, Portugal, and Switzerland. Cyprus also ranked ahead of Singapore and the Cayman Islands.
Overall, Cyprus remains an attractive destination for people considering relocation, running a business, or changing their tax residence, particularly because of its climate and legal residency options. However, sixth place in the ranking does not mean the island leads in every category. Air quality, infrastructure, and the cost of living still require separate consideration when deciding whether to move.