scampicat

I'm flabbergasted!!

I looked on this Cyprus forum for an acquaintance and find you all hate it!!

I'd have thought it was one of the more civilised places to be in the EU.

What a surprise, you get your eyes opened every day.

yummymummy150

Its not that everyone hates it , the ones who are happy are to busy having fun in the sun to go on forums,yes its been tuff as it is in uk, costs have gone up since € dry hot summer with water cuts It depens when &where on the forums you look.Dont go just by what you read use it to research , but you need to spend time there yourself,.Pro&cons wold wide .
Tricia

scampicat

Thanks yummymummy, I'm not actually looking for me (we already live in the sun up a mountain in Spain), but someone on another forum asked whether you got your pensions tax-free in Cyprus so I thought I'd have a look to see if that question had been addressed.

I found people hating the water cuts, the Cypriots (especially the Greeks) and finding themselves the objects of racism!

Anyway, perhaps you know - DO you get your pensions tax-free?

Honest_H

Hi, not exactly tax free, its about 5%, but, people are losing out on the exchange rate

scampicat

Thanks Honest H, same here in Spain about the exchange rate

Thanks for your help.

lobby lou

Have friends in the north who say they get theirs from uk tax free xxx

Honest_H

Not sure how they do that!

Different countries in the EU have agreements, so that people can choose where they pay their tax either at source (in the UK) or from the country they reside.

As Turkey is not in the EU and Nothern Cyprus isn't recognised by the EU, this agreement does not apply. Pensions would therefore be taxed at source.

Unless of course these people have their pensions outside of the UK, which I have no idea about. However, if they don't pay tax then they aren't entitled to any state help from anyone.

Please, someone correct me if I'm wrong (which is most probable given that I'm 34 years away from retirement!lol)

lobby lou

i dont know just asked them and they said they dont pay tax and are from uk

Sobraon

For Government pensions (eg civil service, teachers, police, services etc.) see http://www.hmrc.gov.uk/cnr/uk_gov_pensions.htmas specifically:

"Usually Government Service and Local Authority Service Pensions paid to British nationals living overseas remain taxable in the UK. You will still be eligible to receive full UK Personal Allowances and reliefs.

The main exceptions are Australia, Canada, New Zealand and Cyprus where exemption for Government Service and Local Authority Service Pensions can be claimed."

scampicat

Maybe their pension is not enough to go over their personal allowance?

Honest_H

Hi Sobraon, welcome to BE!

You are right. My Dad had to show that he is now resident in Cyprus. To do this he needed his Alien Book (or resiency permit), to do his he needed to show that he has income in order to live here and not depend on the state. Because the government then have this info, they then send the tax forms.

alarholm

I was searching the internet the other day and came across this:

The Guardian NewsPaper - TaxAvoidance you might find it interesting

Aly

ps, hope i'm not breaking any rules by posting that...