Double taxation treaty

Do you already have a Cypriot bank account? If not you will need the immigration appointment email with all the other docs. Have you engaged a local tax professional? I could not get a tax ID until immigration was completed and I had the ARC number. If you are being taxed at source on your pension you might have to leave it for the moment and then reclaim tax after. Did you complete the P85 when you left the UK on the HMRC Web site?

once you do register with the Cyprus tax authorities you need to complete a DT Individual form which should list all the pensions that will be taxed in Cyprus. The Cyprus Tax authorities will then need to stamp this and you then need to send it to HMRC. HMRC will then change the tax code on your pensions, so you pay no UK tax. Eventually, and it took 4 months for me you may even get a tax rebate from HMRC.  I would get a tax advisor who can do this for you it does make life easier, it was money well spent. If you PM me I can pass you the details of the guy I use.

All good upto date information Phil and MacGeorge.. thank you both

When I completed the P85 online it triggered a whole bunch of things in the UK servioces. The S1, my state pension, a tax code of NT now updated to NTX. Not completed the DT stuff yet as waiting for the CY tax chap to finalise if I can cash in my pension free of UK tax but 7.5% CY defense tax whatever that is or whatever the rate is today lol

The special defence contribution (SDC) tax is a 30% tax on worldwide income IE interest on investments and savings .. but if you are non dom then it doesn't apply..  that %can be reduced to 3%. Under certain conditions iec the worldwide income (interest) being under €12k is one

Remember though most people are non dom for 17 years  and Yiu still can be under certain circumstances ... I think I posted this subject recently

Hi all.

First off, I'm not a financial or tax advisor.

There is a UK Government website regarding the payment of UK pensions if you retire overseas; this link will take you straight to it.  It mentions tax treaties, there is a UK/CY double taxation agreement; this link will take you straight to a downloadable PDF copy; Article 17 of this agreement deals with pensions.

As always, if your tax affairs are complicated, I always advise people to speak to a qualified tax/financial advisor; perhaps Toon can recommend someone.

I hope this helps.

Cynic

Expat Team

@Cynic Absolutely ...if one has complicated tax affairs definitely seek professional.advice..  we didn't have that problem but we still took professional advice and it has proved to be the best advice I have ever been given .....

@phildraper

I did not complete the form before I left the UK , yes I have a Cypriot bank account opened this week but the guy who is helping me with my immigration appointment told me immigration will need to see my pensions coming into my Cyprus bank account at the appointment in 5 weeks.

I recommend you go to the HMRC web site and complete the P85 ASAP.

As we all know the requirements change daily and depending on their mood! I had to prove income with payslips and deposit 20keur in a Cypriot bank for mine. I still do not pay my salary into the Cypriot bank and I did not leave the 20k there either.

Sounds like it has changed if this is the advise you are getting. I was told to put house hold expenses thru the Cypriot bank so on renewal it confirms I have been living here!