UK state pension

Moving to Cyprus this year , is it better to ask the UK work and pensions department to pay my state pension gross monthly into my cyprus bank account or transfer it across my self through
my currency broker, not sure what rate the UK work and pensions would use for exchange to euros or if they charge for remitting your UK pension into a Cyprus bank account.
-@Jackie53

It depends on who you bank with in th UK? A lot of banks will close your UK bank account as they only allow people to hold accounts in the UK if they are resident in the UK.

I have already discussed this with my UK bank who I was an employee with for many years and I can keep my UK bank account open as I have a UK property also.  My move is a permanent move to Cyprus.

In my opinion keep it into your UK bank ...DWP pay the rate of exchange available at time of pension payment .. ie in real time usually at mid bank rate.... Usually free of charge I believe. Not sure if Cypriot bank make charges for a remittance

But keeping it going into your uk bank you are in control so you get the choice ... In my case I hold it till I get the best possible rate via my exchange mechanism

I m not sure if a Cyprus bank charges for remittance .. I don't use a Cyprus bank anymore.... Ditched them 18 months ago.... Too many charges .. but in fairness not usually on incoming remittances but that may have changed...id check with whoever you intend to bank with ..

id suggest you get a Starling account card whilst you still have access to a UK address.. for much better exchange rates than most banks and currency outfits ... In my experience anyway... Very similar to Revolut but Starling I think has a better daily atm cash Withdrawal limit

I need to evidence £2000 euros monthly for immigration , as long as I transfer 24,000 euros for the year will immigration be happy to see lump sums coming in say 3 monthly

rather than my pension coming in directly from UK government. I plan on bulk sending over my private pension this way to avoid low exchange rate.  I will receive gross in the UK then opt to pay my tax annually in Cyprus

Thank you for your advice so far

I think you need to prove the income ..if you deposit initially €24000 and then at renewal you  have at least €6000 on deposit you  will be fine  and with proof of regular income at €2000 or more will be more than fine so keep everything that can prove the requirements....

On a slightly different tack. Since Brexit, immigration want to see a regular income coming into your Cypriot bank account.

What they want to see is a regular income from a reliable source. The UK state pension paid into your Cypriot account is one way of doing this. Prior to Brexit for immigration purposes this was not really needed. The DWP pay your pension into your Cypriot account based on the interbank exchange rate on the day your pension is paid.

For our initial immigration application for temporary residence I was advised to deposit €30,000 into my Cypriot account and then we need to show an income of around €28,000 per annum prior to renewal of our temporary residency.

@MacGeorge8035 Won't a UK bank statement showing the pension monthly figures be sufficient for them?  Or even a UK bank with a large amount in it?  An actual oncome is not asked for; just proof of having an amount available monthly that reaches their financial threshold.

@Jackie53

We have our pension paid into bank account in the UK and then transfer money when needed.  We have two bank accounts, Monzo ( good exchange rates) and use XE and Wise.  Keep more than one bank account in the UK.  This weekend I wanted to pay using my coop bank but found online and mobile banking wasn’t working.  As I had another bank I used that.

Extract from the official CyGov ministry on financial requirements.

Evidence that the applicant has sufficient and stable resources, as analyzed below, derived from a stable or satisfactory income of the applicant outside the Republic. Income includes salary, pension, deposits in a bank account abroad, rents, dividends, interest on deposits or by exception from dividends from a company in the Republic (with certification by the Company's Accountant that he does not receive any salary from his position) or rents in the Republic, or from income in his bank account in the Republic from a salary from his previous work in a company of foreign interests.

Detailed statement of bank account transactions in a financial institution in the Republic of Cyprus, for the last 12 months in case of a renewal or from the date of opening the account in the case of a first permit, showing the foreign remittances in the name of the applicant which in total should not it is less than €2,000 per month or €24,000 per year for one person. This amount increases by 20% for the spouse and by 15% for each child. For the purposes of calculating the amount, transfers abroad or to third parties will not be taken into account.

During the first permit, a cash transfer or deposit of at least €10,000 is also accepted. In the case of a cash deposit, the cash declaration at customs must be submitted.

It is noted that when submitting the application for the renewal of the visitor's permit, the balance in the account must, in any case, not be less than €6,000, which corresponds to three months' income, regardless of the size of the family.

For purposes of calculating sufficient funds, the bank statement will be accompanied by: (a) a declaration of the number of family members that the sponsor will support in the Republic and

(b) a summarized statement of income.

One further option opt for a sterling account in a Cyprus bank ....

@pete21 I am afraid a UK bank statement is not enough for immigration it must be a Cypriot bank account.

I have both a UK bank account with money from the sale of my UK home in there. I also run a Cypriot account into which I deposited €30000 into when I arrived. This was needed for immigration. I now have regular payments from pensions coming into my Cypriot account. This is to satisfy immigration when I come to renew my temporary residency later this year.

You have to be careful with transferring larger sums as the Cypriot banks need the source of the funds and they have been very strict when I transfer anything over €10,000.

You have to be careful with transferring larger sums as the Cypriot banks need the source of the funds and they have been very strict when I transfer anything over €10,000.
-@MacGeorge8035

That is the case everywhere, its because they have to make sure its nothing to do with Money laundering.

@Jackie53

Jackie,

Have been here for 7 yrs. my pension is paid gross to my Uk/ Offshore bank account. Pensions know i am in Cyprus. you transfer what money you want when you want to Cyprus. Must state my Bank account is a Guernsey account and this might make a difference.

suppose you can transfer direct to a Cyprus account but will strongly suggest that you dont use these Brokers for any and everything.

over to you

Charles

@charles533 You have the advantage of being in Cyprus before Brexit. Post Brexit the income requirements and proving them are a bit more complicated.

Thank you all for your advice , it would seem I need to ask the UK to pay my state pension into my Cypriot bank account gross and my private pension as the state pension will not be enough to satisfy 2000 euros monthly.  I can opt to pay my tax in Cyprus annually I believe online.  I had been told for the first year temporary visa I need to deposit 30,000 euros in the Cypriot bank account.

please let me know if my understanding is incorrect.

For taxation here you need to exercise your DTT RIGHTS.. DUAL.TAXATION TREATY.... Not sure if you can do it online not sure how you could tax stamp the forms online maybe you can now....... We did this back in 2015 ...a simple form completed at the tax office here which had to be tax stamped @€80 each person and signed by the tax office. They then send that to HMRC in UK ... The whole process takes about 5-6 weeks and you will be issued with a UK HMRC Tax code...of NT.

Currently an online tax return via taxisnet or the new system once fully live online is not necessary on income of €19500 or less.... But is necessary if it's more . The tax returns are done online each year around this time of year ....

As for the amount of bank deposit needed there seems to be some flexibility on this as other contributors here and other forums have indicated some have paid €30k some have paid various lesser sums...... 

Just received a New HMRC Notification - invoice etc for T’s pension? What is this?

An invoice?????

That in my mind can only be unpaid tax... IE a tax demand .. but you are taxed here aren't you

I don’t pay tax, but T does - but our tax lady (in Paphos)  said not to bother to send anything this time - that she’ll do everything.

And yes, we’ve always paid whatever tax was due, and I sent her the balance of what we owed ages and ages ago!

Tell me privately who you use by way of tax accountant

Have forgotten your surname, sorry.  I remember your first name, but it’s been a long time!  I remember your wife’s first name too!

Can you Messenger me, or text me, (or first few letters here should do it!) then I’ll respond. 

Ah, just seen your message from some time ago.  All is okay! (I believe!!)

No.   You’ll have to contact me!   Sorry!  Nothing seems to go through !