CyprusLiving

Hi Mark and all,

I have now moved to Cyprus full time, having purchased a property and sold up in the UK. I am retired, and is income currently comprises 2 pensions, an armed forces pension of approx. 10K per year and a further work pension of approx. 5K per year, both of these are administered and paid by Equinity Paymaster, and paid in to my B o C account here. I will qualify for UK state pension at the end of 2017, and will be having that paid in Cyprus also. I understand that I will be better off paying my tax on these pensions in Cyprus rather than UK as I will be here for the vast majority of the time. I have had a look in the FAQ section, but a lot of the info is pretty old, dating back to the events of 2013 in a lot of cases.

My question is can anybody help with a guide to the steps that I need to take in order to arrange to pay my tax in Cyprus and have tax deductions taken at source in the UK stopped.

Many Thanks

Al

Go and see a proper Tax Accountant

Elizabeth Welch is well respected by expats

I went to the Cypriot tax people in Paphos explained my situation and they gave me forms to send to the UK tax authorities. The UK tax people then declared me NT No Tax for my pensions and deposit accounts which I have been receiving tax free for over 15 years. I of course pay tax to the Cypriot tax people under tax rule 245/90 which is the 5% rule, you have, on your combined income, pensions, deposits etc, a tax ememption of €3420 and the remainder at 5%. Much better than paying to the UK. This was of course before Cyprus foolishly joined the EU, don't think this has changed and probably wont change if the UK leaves the EU to head off the scaremongers.

Just to add for Al. As well as the tax rates that Clive correctly gives, you can also choose to be taxed at 20% on income over €19,500.

It is of course not a choice to be taxed here, if you live here more than half a year. It is a law that if you are here more than 183 days then tax on your worldly income is paid in Cyprus.

Trev..

Al,

There is a misunderstanding generally that you can chose where to be taxed. The reality is that if you are resident in Cyprus for more than 183 days per year you are tax resident and legally obliged to register. This is becoming more important due to the 'Common Reporting Standards' (CRS) being adopted in most countries. You will soon find it very difficult to make any financial transaction without a 'Tax Identification Number' (TIN) in your country of residence. Even if you have no tax liability here (i.e. income below €19,500 pa) you should register. In the past the authorities have put people off, in my opinion because they didn't want to do the work! However it is in your interest to register.

The process is relatively easy... complete the UK HMRC form DT Individual (available for download here https://www.gov.uk/government/publications/double-taxation-treaty-relief-form-dt-individual and take it to your local tax office along with your passport, 'yellow slip', proof of income (if any) proof of address rent agreement or title deeds(!) - they may ask for more documents... pay for some stamps (not sure how much now) and they will do the rest. They send the completed DT form (they have to fill part in) to HMRC and in due course you will receive notification from HMRC.

I hope this helps.

All the best