Tax Resident & Tax domicile

Hello Toon,

Thank you for sharing this information with us.

Priscilla

Expat.com Team

Excellent article!

That's Cyprus Domicile sorted, how about UK domicile?

Its somewhat similar..

What is tax residence?

Simply put, tax residence is the country in which you usually spend the most time, or have the most connections.

Your UK residence status affects whether you need to pay tax on your UK and foreign income. Each country has its own rules, and UK tax residency is determined by the Statutory Residence Test.

What is domicile?

Domicile can best be described as your ‘permanent home’, which may not be the same as the country you live in.

Your domicile status depends on your family background, in particular that of your father, as well as the choices you have made in your own life to make a country your permanent home.

Why is it important?

Your residence and domicile status impacts how much tax you need to pay in the UK.

Specifically, different tax rules will apply to UK and foreign income and gains. It can also impact the tax reliefs and allowances available to you

Your residence and domicile status impacts how much tax you need to pay in the UK.

Note that residence and domicile are complicated areas and so take professional advice to thoroughly evaluate and.establish your position

An individual is domiciled in the UK if they 'belong' in the UK and it is their home. This is usually established through their parents' (usually father's) domicile at the date of the individual's birth, known as 'domicile of origin'; or by making the UK their permanent home and renouncing their native land.

Worth mentioning that being tax resident or domiciled in either country doesn't mean you are not tax resident or domiciled in the other; they have different rules and they can overlap. Double Taxation Agreements may then apply, but not to IHT as there is none in Cyprus.

@Armoukid exactly why professional advice should be sought

Anyone knows where and how to apply for individual tax clearance certificate? thanks

I would suggest the appropriate tax office ...

@liqian201503

Never heard of this.

@phildraper

Am not sure what is being requested as tax clearance ..as it is usually required when selling property and is part of legal sales process. .

Am thinking. Maybe its the tax return formal written acceptance  that is posted out to tax payers. We just got ours for 2022 a few months ago

@Toon

2022 lol they are getting up to date then 😬

@phildraper

Exactly

@Toon

it is for Acquisition of the status of long-term resident, request is:

Income tax returns for the last five years and tax clearance certificate.

Φορολογικές Δηλώσεις των τελευταίων 5 χρόνων και Πιστοποιητικό διευθέτησης τυχόν φορολογικών υποχρεώσεων.

If you check here you will see: https://www.mip.gov.cy/dmmip/md.nsf/all … endocument

Ok  thanks ..just needed clarification ... Let us know how you get on

@Toon

Hey big boy, did you have to do all this when you 1st came here. I did nothing but then I live in a "foreign" area (haha). Never submitted or have been asked for a Tax reurn.

@charles533

No never it was easy when an EU national...we did it all ourselves in Malta 2008 and then again in 2014 Cyprus then again in 2019 for PR and again 2024 for biometric

@charles533

But the difference on this matter is the Long Term Residency route it's different to yellow slip and pink slip routes but Both pink slip and LTR routes both disallow working however yellow slip doesn't

@Toon

LTR allows to work without restriction

@phildraper

Just received my wife's annual tax assessment clearance assesment for 2023 so mine must be due soon  too....

I have started the tax process last week

@charles533

No  Charles .... We chose to do it as I new we would have to do so at some point and best to be on board and be used to.it when the time came .. it makes things so much easier in terms of selling a property as tax clearance must be done before any property sale can take place and be completed