Cyprus Tax Residency and UK Statutory Residence Test

You should have 2 separate wills made. 1 for your UK assets and 1 for your Cyprus assets. Yes, you are correct, you can't open new ISA's but you generally cannot make new contributions to them unless you are an eligible Crown employee. You should inform your ISA provider of your new non-UK address and the change in your residency status to ensure compliance with tax regulations. While existing funds in your ISA will continue to grow tax-free in the UK, their tax treatment in your new country of residence will depend on that country's laws, which may no longer recognise the UK's tax-free status.

As these are in the UK, these would go into your UK will and anything else, money, shares, property, etc...

You might like to consider speaking to a wills lawyer or a specialist here ..Maplebrook Services ie Wayne the will man he has a very good reputation

@19kevin

i would be interested in what you find out. I have an UKW3 status. I pay UK taxes on my pensions, but do not Cyprus taxes and therefore get no benefits. (Healthcare etc)

@19kevin

the best people to help you are a certified accounting office, I will suggest ***

Hi,
I am in the process of buying a property in Cyprus and intend to become a Cyprus tax resident. I initially propose to be in Cyprus a minimum of 183 days per year.

I intend to put my share of my UK house (we are tenants in common) in trust for my children. I also intend to have a Cyprus will made for any other financial assets that I am able to transfer. I intend to see a financial adviser/accountant when I get to Cyprus.

Does anyone have any experience/knowledge of:

How long does it take to become a Cyprus tax resident.
The UK Statutory Residence Test. I appear to have an accommodation tie to the UK, I will have been a UK resident in the preceding tax years and possibly a family tie (cohabiting partner). It appears that I may only be able to spend up to 45 days in the UK.
I understand that I can retain UK ISA's but I can't open any new ISA's. Does anyone know if these would be considered part of UK estate or Cyprus estate.
PUNIN GROUP παρέχει φορολογικές και συμβουλευτικές υπηρεσίες στην Κύπρο, βοηθώντας ιδιώτες και επιχειρήσεις στον οικονομικό τους σχεδιασμό, με πρακτικά εργαλεία όπως ο υπολογισμός καθαρού μισθού
Thank you in advance for any assistance.

Kevin - @19kevin

This is a fairly common situation for people relocating from the UK, and you’re right to be cautious because the UK Statutory Residence Test can be quite strict.

In practice, Cyprus tax residency is straightforward once you meet the physical presence requirement (183 days, or potentially the 60-day rule if applicable) and register with the tax authorities. That part doesn’t usually take long once you’re on the ground.

The bigger risk is definitely the UK SRT. With previous UK residence, a property interest, and a possible family tie, your allowable UK days can drop sharply — in some cases to around 45 days, as you’ve noted. Careful tracking of days and ties is essential, especially in the first couple of years.

puningroup

FYI I’ve just had a worldwide will created with aCypriot based law firm,  but under UK law. However, I don’t have any physical assets only financial ones in the UK. But it means I only need 1 will.

I have applied for Cyprus tax residency, and communication with the accountant is slow to say the least, but it should be sorted out from 1st Jan this year. I have informed HMRC and am awaiting their response too.

We applied for Cyprus tax residency. It was amazingly quick for my husband and within 4 weeks he got a letter from HMRC confirming it. My form went to a different lady....... but after I went to the tax office, it got processed and within 2 weeks I got a uk tax refund for last year's tax and confirmation about not paying uk tax on my private uk pension, and a tax refund for overpaid tax for this year.

As usual, a mountain of paperwork was required by the Cyprus tax office. But we had it all in order. They gave us a list of required paperwork, and did not ask for any additional paperwork. 

Did you complete a P85 on HMRC website and once you have the Cyprus tax number get the DT individual completed and lodged with HMRC. If you are of UK retirement age get your S1 from the UK overseas NHS and register for GESY on Cyprus

Yes. Did P85 form on HMRC website. Got Cyprus tax number online. Then went to tax office with a huge pack of photocopies of documents for the DT form (We were given a list of necessary documents).

I completed online HMRC form to ask for overpaid tax back. Submitted UK tax return. Got tax refunds back almost immediately.

Next job is to complete Cyprus tax form, which I hope is fairly easy.