Receiving your pension in Cyprus

[Keith]

Do people pay tax over there or do you have to pay the UK tax on a U.K. pension then claim it back if you are below your threshold?

We have a guy coming round next week and I just want a bit of info before he gets here.

Thanks, Keith

[Poppy]

Hi Keith
You need to go to the tax office here and they will liaise with the UK. You will be better off normally electing to pay tax ( if any due) here so I receive my UK pensions with a NT tax code and then have to submit tax forms here each year. The tax allowance here is 19,500 I think and about 11k GBP in the UK.
Hope this helps!

[emgee]

Keith
Unless you have very complicated Tax affairs, in Cyprus your world-wide earnings up to €19,500.00 are tax free and then you start paying at 20%. If you live in Cyprus for 183days per annum then you must pay Cypriot tax. Working out tax payments is relatively easy using P60s from income sources and for the state pension 52 weeks @ GBP xxx.xx and then add 'em up and convert all figures to € at the official rate.

Good luck

Alan

[Poppy]

Keith if you are coming over here to live which your post seems to suggest then do try to maintain a Bank Account in the UK! If you ever decide to return it is very difficulty, nay impossible, to open one without bills to show proof of address. Regards your pension it is entirely up to you whether or not you have it paid there or here. If you elect to have it paid here then you get a very fair exchange rate and Overseas Pension Branch are normally very helpful.
Don't forget you will lose your Winter Fuel Allowance once you reside permanently here!

[geoffreys]

Keith
Unless you have very complicated Tax affairs, in Cyprus your world-wide earnings up to €19,500.00 are tax free and then you start paying at 20%. If you live in Cyprus for 183days per annum then you must pay Cypriot tax. Working out tax payments is relatively easy using P60s from income sources and for the state pension 52 weeks @ GBP xxx.xx and then add 'em up and convert all figures to € at the official rate.

Good luck

Alan

OR you can have the first €3,420 tax-free, and then 5% tax on all income over that. This means the break-even point is
€24,861, between €19,501 and €24,860 cheaper to opt for the 20% scheme Alan detailed, over €24,860 the 5% scheme.
Geoff.

[Mrblobby]

P60s are not much help , the Cyprus tax year is January to December . And you can not just times the state pension by 52 because it changes each year in April .

[trevnhil]

My wife and I both have our pensions paid into a UK bank, but with zero tax taken out (NT tax code )

We have joined up with the Cypriot tax system and would pay tax on ALL income if it was over the €19,500 .... But it isn't so we pay no tax, but have to submit a return each year.

Trev..

[emgee]

Mr Blobby

You are right, but to be pedantic, work the figures out at 40 x rate x and 12 @ rate y and divide the P60s proportionately. Being doing it my way for 14 years, always paid due amount on time, not had any problems so far..........................................who is that at the door?

My company pension payments are the same each year, so it all works out for me.


Alan

[Keith]

Thanks All
Looks like we won't be paying tax, glad you can get it paid into UK bank with zero tax taken as long as we are under the threshold.
What is the NT Tax code?
Trev, When you fill in your return each year is it just for Cyprus because you live there or do you have to do for both Cyprus and the UK?

Thanks, Keith

[trevnhil]

Hi Keith. We are not liable for tax in the UK as we live here in Cyprus for more than 183 days a year.
So both myself and my wife have to fill in a Tax return for the Cyprus income tax people.

The NT tax code is from the initials.. No Tax


Trev..

[geoffreys]

Hi Keith. We are not liable for tax in the UK as we live here in Cyprus for more than 183 days a year.
So both myself and my wife have to fill in a Tax return for the Cyprus income tax people.

The NT tax code is from the initials.. No Tax


Trev..

To get the UK tax code "NT" you must be a non-resident in UK; you get this by applying to be eligible for the Double Taxation
Agreement between UK and Cyprus. You can download the application form P85 on-line from the UK HMRC website. Take it to
the Cyprus tax office (you cannot do it via the UK HMRC) and they stamp it and send it off to UK HMRC, make sure they give you a photocopy of it - it costs you €28 EU Admin Fee (you buy the stamps at the cashier counter). Then you are taxed ONLY in Cyprus on any world-wide income.
Hope this helps.
Geoff.

[emgee]

Really helpful, well done everyone who contributed.

Alan

[Mrblobby]

To get the UK tax code "NT" you must be a non-resident in UK; you get this by applying to be eligible for the Double Taxation
Agreement between UK and Cyprus. You can download the application form P85 on-line from the UK HMRC website. Take it to
the Cyprus tax office (you cannot do it via the UK HMRC) and they stamp it and send it off to UK HMRC, make sure they give you a photocopy of it - it costs you €28 EU Admin Fee (you buy the stamps at the cashier counter). Then you are taxed ONLY in Cyprus on any world-wide income.
Hope this helps.
Geoff.

Has the the admin fee gone down ? When we did ours 6 years ago they charged me and the wife 80 euros each .

[geoffreys]

To get the UK tax code "NT" you must be a non-resident in UK; you get this by applying to be eligible for the Double Taxation
Agreement between UK and Cyprus. You can download the application form P85 on-line from the UK HMRC website. Take it to
the Cyprus tax office (you cannot do it via the UK HMRC) and they stamp it and send it off to UK HMRC, make sure they give you a photocopy of it - it costs you €80 EU Admin Fee (you buy the stamps at the cashier counter). Then you are taxed ONLY in Cyprus on any world-wide income.
Hope this helps.
Geoff.

Has the the admin fee gone down ? When we did ours 6 years ago they charged me and the wife 80 euros each .

Ooops!! Very sorry, yes €80
Geoff.

[Keith]

Really good information there folks, thanks a lot.
I do feel a Nut, as soon as I pressed sent I realised NT would possibly have meant No Tax.
One born every minute, and I am one of them

Keith

[emgee]

Keith

To err is human, to forgive, devine.

Alan

[emgee]

Ooops!

Please forgive me.

Alan

[Firefly]

Have the rules changed ? I thought that if you were not eligible for tax in Cyprus, no return was necessary. My income was less than the Cypriot allowance and I never filled in a return.

Jackie

[Mrblobby]

Have the rules changed ? I thought that if you were not eligible for tax in Cyprus, no return was necessary. My income was less than the Cypriot allowance and I never filled in a return.

Jackie

Did you ever register at the tax office ?

My wife was getting taxed on her pension in the UK when we first moved over here . So we thought it worth the effort to register in the Cyprus tax system and ever since we have received tax forms each year even though we are below the personal limits and so pay no tax .

I do not know if it is law to be in the tax system if your income is below the limits , it would be interesting to know .

[keving]

I was under the impression that if your income was below the threshold you didn't need to complete a tax return.