EU citizens wishing to move to Cyprus need to apply for the appropriate permit and, if retired, need to show that they can support themselves.
The minimum income required to gain "citizenship" (and your residence permit) is approximately 9,500 euros/7060 pounds. This can be through any menas of income including pensions, investment interest etc.
I will be adding pages on moving to Cyprus in the next few months once I have checked out all the changes. In the meantime, you may want to take a look at AngloInfo Cyprus which has lots of useful information on moving to Cyprus.
