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UK/Cyprus Taxation 
Post: #1   PostPosted: Sun Aug 19, 2007 9:22 am Reply with quote
Angie4
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Can anyone give me advice about tax please. I live permanently in Cyprus and know about the Double Taxation Agreement with the UK. I want to pay my tax in Cyprus but dont know how to go about it. I have read the literature from the UK Inland Revenue and its as clear as mud. Has anyone actually gone through the process who can help me, please.
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Post: #2   PostPosted: Wed Aug 29, 2007 1:17 pm Reply with quote
Louisez
Joined: 19 Mar 2007
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Location: Limassol

 
Hi there

If you send me an email I can put you in touch with an IFA who can make sure you do it all properly!

Kind regards

Louise
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Post: #3   PostPosted: Tue Nov 20, 2007 11:09 am Reply with quote
DUNCAN
Joined: 20 Nov 2007
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I have just been through all this and it is quite simple. I knew nothing about the tax agreement and assumed that no longer living in the UK I was not liable for tax. WRONG!! Download the relevant tax form from the UK tax site and fill it in. Then go to the local tax office here and obtain forms for each year you have been living here. Fill them in and submit them to the local tax office and you will then receive notification from UK that you will no longer be getting tax demands from them. Needless to say the British Gestapo aka HM Customs and Revenue will not advise you of any of this but just send you demands and fines if you do not follow the above procedures. They found out my address here and threatened me with court action here if I did not pay them. Now they accept I do not have to pay anything. Who says the UK is not a police state?
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Post: #4   PostPosted: Tue Nov 20, 2007 1:18 pm Reply with quote
Louisez
Joined: 19 Mar 2007
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Location: Limassol

 
Sounds simple enough!

Let us know how you get on.

Kind regards

Louise
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Post: #5   PostPosted: Tue Nov 20, 2007 4:58 pm Reply with quote
Campbell Findlay
Joined: 24 Jan 2007
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Location: Kapparis January 2007

 
Hi there,
Couldn't let this one go after DUNCANs caustic comment.Before we left the UK last year I did a bit of research and took advice from someone who had gone before me.
1.Get in touch with the Tax Office responsible for your tax file -my ex employers told me where and gave me a phone number. Ask the tax office for your UNIQUE tax reference number.It will be something like 392/A4567.
2.Go online to
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and ask for a form P85 which is an "INCOME TAX CLAIM when you have left or are about to leave the UK. Or,you can ring the same people on 00 44 8459 000 604
3.Complete that form and return it to your own tax office.
4.In due course you will receive a form from The Centre For Non Residents in Nottingham.It is called a FORM DT/INDIVIDUAL and will be accompanied by notes to help you complete it.
Part D regarding UK income tax taken off payments already received -there will probably not be enough space on the form so just put in there "see attached sheet" and do the necessary on a sheet of lined fulscap.
5Take the form DT/Individual to the Inland Revenue Office in Paralimni -its in the block directly opposite the Town Hall-together with the documents they ask for.

I found the staff in there very helpful.They will give you a couple of local forms to fill in which are quite simple.If you are not sure ask the girl in the office to help.

She wouldn't let me submit the forms until we had lived in Cyprus for six months.
I am told that it takes about six months after submission of the documents to Paralimni for 'the system' to catch up.
In February 2008 I look forward to receiving a juicy cheque fromUK Inland Rev.

I have opted to go for the Cyprus option of first 2000 pounds tax free and 5% Cyprus income tax on the remainder.Your second option is the first 10000 tax free and 30% Cyprus Income tax on the remainder.
I will be keeping some of my inland rev.cheque to use to settle my first Cyprus Tax demand.

In conclusion I believe that if Duncan had read up on Double Taxation he wouldn't have felt he had had a raw deal.

Hope this helps.Oh Yes -keep copies of everything!!!!

Cheers,
Campbell.
PS.The Cyprus authorities will stamp your form and return it to the Centre for Non Residents who will calculate what you will be repaid.
You have to live in Cyprus for more than 183 days to apply for the above.

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Post: #6   PostPosted: Tue Nov 20, 2007 5:41 pm Reply with quote
Angie4
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Hi Campbell
Thanks for all that info. You have made it sound very simple! Its been something I have been meaning to get round to for a year or so now and your advice has given me the impetus to get on with it.
Cheers!
Angie
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Post: #7   PostPosted: Tue Nov 20, 2007 8:01 pm Reply with quote
chiploi
Joined: 30 Aug 2005
Posts: 452
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Location: Paralimni

 
Hi Campbell
I have been in the process of paying tax in Cyprus for about 9 months now and have filled in the tax return online. Without going into it too much, I believe that the option that pensioners have is as you say 200cy and 5% whereas the option that both pensioners and eveybody else has is 10000cy and 20%. Also for those that have their interest taxed at source, they can fill form R105 and take it to their bank or building society to get interest gross. This should be Cyprus defence tax as against UK 20%
I have had my tax return for 2006 accepted by Cyprus Inland Revenue and am waiting to pay. This will be a lot less than the UK. I have already had my cheque from the UK
Anyone wishing to fill in tax returns online this is the website
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Roy
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Post: #8   PostPosted: Thu Nov 22, 2007 11:51 am Reply with quote
Campbell Findlay
Joined: 24 Jan 2007
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Location: Kapparis January 2007

 
Hi Chiploi,
Don't want to be pedantic but on your last post should it not be 2000Cyp.and the remainder at 5% or 10000 and the remainder at 30%


Cheers,
Campbell.

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Post: #9   PostPosted: Thu Nov 22, 2007 2:40 pm Reply with quote
chiploi
Joined: 30 Aug 2005
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Location: Paralimni

 
Wink And a question mark? LOL. Sorry no offence meant, just trying to help.

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Roy
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Post: #10   PostPosted: Thu Nov 22, 2007 3:11 pm Reply with quote
nhowarth
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Hi Angie,

It's quite straightforward.

First, visit
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and download the 'DT/Individual Form'. It's 10 pages and contains notes on how to fill it in.

Complete the form and get yourself a CYP 1.00 Revenue Stamp from your local Post Office.

Take the form, together with your residents permit, passport, pension details, and the stamp to your local Inland Revenue office.

They will check the form, stamp and sign it - and return it to the UK Inland Revenue. It takes the people in the UK about 6 months to process it, but eventually you will receive your pensions without the deduction of UK tax.

I took out part of another pension earlier this year and went through the process.

(f you'd like me to email you a blank form to complete, drop me a pm with your email address and I'll send it to you).

Regards,

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Post: #11   PostPosted: Sat Dec 01, 2007 10:24 am Reply with quote
Baggysdad
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Quote:
Don't want to be pedantic but on your last post should it not be 2000Cyp.and the remainder at 5% or 10000 and the remainder at 30%


Does that mean that for those on the second option, there are no longer tiered rates of income tax? I think it used to be 20% from £10K to £15K, 25% from 15K to 20K and 30% above 20K.

I also understand that the £10,000 threshold for 2007 has been increased to £10,750 and increased to £11,350 for 2008. Can anyone confirm?

Thanks
Paul
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Post: #12   PostPosted: Sat Dec 01, 2007 3:25 pm Reply with quote
Angie4
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Hi Nigel
Thanks for that. Can I complete FormDT/Individual without first sending P85 to the UK?
Kind regards,
Angie
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Post: #13   PostPosted: Sat Dec 15, 2007 4:47 pm Reply with quote
tonyl
Joined: 23 Apr 2007
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Location: Frenaros at last, was Poole, Dorset

 
Hi folks

Back on line for the next 3 weeks while we are 'visiting' the UK for Xmas and New Year (No phone line yet at the house in Frenaros).

I also want to be taxed in Cyprus rather than the UK and the question I need answered is 'Do you have to have your pension (Company not State as I'm only 60) paid directly into a Cyprus bank account or can it be paid, as it currently is, into my UK bank account, and then only have a proportion of it transfered to Cyprus?' I see on the form that one of the questions is 'Do you remit ALL your income to your foreign account?' (or something like that.)

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Post: #14   PostPosted: Mon Jan 07, 2008 12:50 pm Reply with quote
MarkN
Joined: 16 Jul 2007
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Baggysdad wrote:
Quote:
Don't want to be pedantic but on your last post should it not be 2000Cyp.and the remainder at 5% or 10000 and the remainder at 30%


Does that mean that for those on the second option, there are no longer tiered rates of income tax? I think it used to be 20% from £10K to £15K, 25% from 15K to 20K and 30% above 20K.

I also understand that the £10,000 threshold for 2007 has been increased to £10,750 and increased to £11,350 for 2008. Can anyone confirm?

Thanks
Paul



Paul,

You are correct, the income tax rates for 2007 were:

0 -CYP£10,000 - 0%
10,001 - 15,000 - 20&
15,001 - 20,000 - 25%
over 20,001 - 30%

There was a proposal that the tax free band would increase to £10,750 but as far as I'm aware this still has not been ratified by the House of Representatives. We live in hope!

All the best

Mark
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Post: #15   PostPosted: Mon Jan 07, 2008 1:43 pm Reply with quote
jo_uk_1799
Joined: 01 Nov 2007
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Louise recommended me an accountant. If like me anything to do with money and taxes just baffles you maybe its sometimes worth just paying someone to sit down and talk to you for a couple of hours on your options until you understand it all.

I 'm self employed and will still be doing that when I move over ( flying back for the odd job and doing some work from Cyprus but paid from England) I really dont know whats best to do..Do I just continue to get paid into my english account and pay taxes here or do i get paid in euros into a cyprus account and pay taxes in Cyprus as that will be my main home. Its all a big headache to me and id just love someone to make the options clear. I know its costs money everytime I do a transfer to my Cyprus bank so logic tells me the euro payment option is best but who knows!!!
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Post: #16   PostPosted: Sun Mar 16, 2008 11:58 am Reply with quote
MarsdenCuckoo
Joined: 22 Oct 2006
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Location: Cornwall (& Larnaca occasionally!)

 
We went through this process nearly two years ago. The Larnaca tax office were excellent and made it all very simple - even gave us a mobile tel. no. in case we had any other queries. (We called in first to see how to do it and then went back with the relevant documents.)

As said above, it took six months to get the tax rebate from the UK. Our UK pension is still paid into our UK bank account and we just bring monies across as/when we need. The form you sign confirms you will pay income tax to Cyprus on your worldwide income - whether or not you bring it into Cyprus or not.

When we went to register, the form we were asked to sign was actually for the 12 months before we came here. Shocked They explained that was the only form they were concerned with at that time - the form to cover when we moved here would be posted out to us at the relevant time. We asked for a basic idea as to when we would need to pay our first lot of tax here and all she said was "Cyprus is not for worry... maybe 2008 or 2009 or even later" (bear in mind that was in 2006). Whether they will issue us with a statement showing we owe a nil balance re. the first form we signed or not, I have no idea but we haven't been asked for any money as yet.

"Cyprus is not for worry"

Christine

PS: If you're retired they even calculate for you which system it's best for YOU to opt for i.e. the graded or flat 5%
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Post: #17   PostPosted: Sun Mar 16, 2008 3:43 pm Reply with quote
Campbell Findlay
Joined: 24 Jan 2007
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Location: Kapparis January 2007

 
Hi there,
It has taken 9mths.since submission of the documents to Paralimni tax office but last week I got my first dollop of refund with the promise of the balance at beginning of April.
When I get that I will open another account at BoC and deposit what I think Cyprus Inland Rev.will demand at "sometime"in the future.At least it will be there to be paid straight away.

Cheers,
Campbell.

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Post: #18   PostPosted: Sun Mar 16, 2008 5:58 pm Reply with quote
Kwacka
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We moved here in late 2002 and went to tax office in early 2003.

Cyprus tax year runs from Jan-Dec. and, as we weren't here for all of 2002 we paid no tax.

Last year got tax bills for 2003 & 2004 (within 2 weeks) - glad to say tax bill was less than Cy 500 for two years.

Still waiting for 2005, 2006, 2007.

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Post: #19   PostPosted: Sun Mar 16, 2008 7:57 pm Reply with quote
MarsdenCuckoo
Joined: 22 Oct 2006
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Location: Cornwall (& Larnaca occasionally!)

 
So on that basis, 2005 is due this year and 2006 next year. (Or maybe both together.... who knows?) Laughing

These BBs are great for sharing information! Thanks.

Christine
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Tax 
Post: #20   PostPosted: Mon Nov 06, 2017 8:46 am Reply with quote
Bill46
Joined: 02 Nov 2017
Posts: 1
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Location: Larnaca

 
Hi Louise. Your post says you can provide details of an IFA. Would be grateful if you could forward.
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UK/Cyprus Taxation 
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