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Tax resident in Cyprus

Last activity 14 June 2024 by phildraper

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lshill

We have been living in Cyprus for 2 years and have now signed up as tax resident in Cyprus.  We get pensions paid in the UK and rental income from a house there and have been paying UK tax on them.  Any advice on how to transfer tax commitments from UK to Cyprus?  Tried HMRC site but no luck.


Thanks

Toon

Might be an idea to speak to a local tax professional to be sure you get the best way to deal with it without. As knowing numbers it's difficult to assess as everyone is different depending on numbers and personal circumstances

Toon

If it's simple then maybe it's just a case of registering fir tax here and then doing the DTT forms but as I said best to take professional advice to make sure you are legally  minimising taxes as best you can

phildraper

I completed a P85 on HMRC web site when I left 18months ago. They sent me new tax code of NTX. Then when I got my state pension there was no tax deducted. If you have a private pension in draw down you need to get a new NTX tax code for them and they will stop deducting tax. Any tax you have paid since exiting UK can be claimed back. Rental income in the UK is taxable in the UK However you can use your 12k allowance toitigste that. Did you get a Cyprus TIN and register on the Cyprus tax web site? Get a local tax person to submit Cyprus tax. I cannot recommend one as I have not found a quick reliable call you back one yet lol. Good luck

Armoukid

@lshill submit dt/individual (from HMRC) to the Cyprus Tax Office, detailing your pensions. They will send it to the UK and HMRC will instruct the pension provider to pay your pension gross. Your primary responsibility for UK rental income will remain in the UK, but you will be able to use your full UK tax allowance as the pensions will be taxable here.

telf

@phildraper Remembering that your state pensiion eats up the majority your tax free alloeance of  £12570

telf

@Armoukid  All goverment pensions taxed at source from next year

shotokan101


    @phildraper Remembering that your state pensiion eats up the majority your tax free alloeance of  £12570
   

    -@telf


How so ?


For HMRC Purposes you would only have the rent income as counting towards your UK tax liabilities.


For Cyprus Tax purposes your untaxed at source UK pension(s) will only be liable for Cyprus taxation at 5% and therefore would not count against the Cyprus tax allowance.


TBH I'm not 100% sure as to whether the (already taked in the UK) UK rental income would be liable for any additional Cyprus taxation, but while that would seem to be unreasonable, as we all know taxation and the law quite often don't seem to be based on "reason".


This is just my personal interpretation of the stated situation and the current legislation.


Jim

phildraper

My understanding is the UK rental is taxed at source and personal allowance will apply.

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