registering for tax in cyprus

[jeba]

OK, so if you are a German national residing in Cyprus does all this mean there is absolutely no point in registering for DT agreement
status if your income is derived in Germany?
If so what is the point of the DT agreement?
Geoff.

I´d have to register only if my taxable income was above the Cypriot threshhold (which won´t be the case for another 16 years due the non-domiciled regulations introduced 2 years ago). As long as this isn´t the case there is neither a point in registering nor an obligation to do so.

Among other things the point of the DTA is to make sure tax residents of Cyprus won´t be taxed again in Cyprus on income which was already or will be taxed in Germany (and obviously make sure that the same is true for tax residents of Germany with income from Cyprus). It also obligates both countries to share tax relevant data in certain cases.

[jeba]

OK I get what you say. All would say is that your use of the word 'suspicious' to me infers that you think something illegal or underhand is taking place when all Brits are doing is to follow a legally negotiated agreement.

Why would you think that? I never insinuated there was something illegal taking place. Of course, as I´m not a native speaker I´m not aware of all connotations of English words. So I´d ask to be given the benefit of doubt. E. g. I´d also say that I have the suspicion that dividing 1 by 3 will give an infinite number of decimal places. That´s not to mean it is illegal or somewhat fishy for a number to be an infinite number.

One question I have is if there is a DT agreement between Germany and Cyprus wherein income arising in Germany is still taxed in Germany does that mean that that income is not taken into account when assessing liability for tax in Cyprus, otherwise I see no advantage in have such an agreement, as geoffreys has already stated.

Exactly. See my previous posting. Plus of course, the DTA also regulates taxation of companies.

[Varky]

jeba,

Use 'feeling' rather than 'suspicion'.

[Dominic]

Why would you think that? I never insinuated there was something illegal taking place. Of course, as I´m not a native speaker I´m not aware of all connotations of English words. So I´d ask to be given the benefit of doubt. E. g. I´d also say that I have the suspicion that dividing 1 by 3 will give an infinite number of decimal places. That´s not to mean it is illegal or somewhat fishy for a number to be an infinite number.

First of all, your English is much better than my German.

Secondly, a native speaker wouldn't say "they have a suspicion that dividing 1 by 3 will give an infinite number of places".

They are more likely to say: "they think that dividing 1 by 3 will give an infinite number of places".

Or, as Varky suggested, they might say "they have a feeling that dividing 1 by 3 will give an infinite number of places.

You would use "suspicion" if you thought something wrong had occurred.

"Ben had a suspicion that BIll ate all the pies".

You could also say "Ben had a feeling that Bill ate all the pies". However, having a suspicion would imply that Bill shouldn't have eaten all the pies.

[Varky]

Thank you, Dominic.

Jeba,

I thought it was a legal requirement that if you are resident for more than 183 days in a year then you have to register with the tax authorities.

[geoffreys]

Thank you, Dominic.

Jeba,

I thought it was a legal requirement that if you are resident for more than 183 days in a year then you have to register with the tax authorities.

It is, as is applying for residency (whatever your nationality!); DTA status is optional.
Geoff.

[jeba]

Thank you, Dominic.

Jeba,

I thought it was a legal requirement that if you are resident for more than 183 days in a year then you have to register with the tax authorities.

It is, as is applying for residency (whatever your nationality!); DTA status is optional.
Geoff.

No, only if your taxable income is beyond the tax threshhold:

"An individual should register with the Tax Department and submit personal income tax returns if they earn taxable income in Cyprus exceeding the tax-free amount of €19,500 per annum"

. Source: https://www2.deloitte.com/content/dam/D ... _Noexp.pdf

As long as you´re spending at least 183 in Cyprus you´re a tax resident but that doesn´t always mean you have to register with financial authorities and file a tax return. Registration to get your yellow slip is indeed mandatory though.

[Varky]

jeba,

I have looked on several official websites and you are right. If your taxable income, derived from anything other than a salary, does not surpass €19,500 then you are under no obligation to submit a tax return, However if you wish to take advantage of a DT agreement it appears that the Cypriot authorities have to certify your situation with the UK authorities and as such require such a local tax return