Retiring in Cyprus, tax on pension?

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Dyest
Posts: 1
Joined: 05 Sep 2018 14:08

Retiring in Cyprus, tax on pension?

Post by Dyest » 05 Sep 2018 14:32

I'm looking at retiring in Cyprus (not long to go! :) ) and had a quick question about your income taxes over there - I understand the UK ones (good site to look at how they affect incomes & play with some numbers here) but haven't got the slightest clue how they work over there. My pension will go over the first tax band here so I can imagine it will there, just don't know any numbers. Can someone advise?

(Also, if there's a similar kind of website for Cyprus, something like that to visualise what taxes go out where would be great)

Thanks!



Nigel Howarth
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Re: Retiring in Cyprus, tax on pension?

Post by Nigel Howarth » 06 Sep 2018 00:19

Hi Dyest & welcome to the forum.

There's a handy little booklet that explains income tax, etc. published by pwc at https://www.pwc.com.cy/en/publications/ ... nglish.pdf

Once you've registered for tax here you can either have your pension taxed as a income, in which case you'll find the rates on page 5 of the booklet.

OR

You can have it taxed as a pension, in which case you have an annual allowance of €3,420 and pay 5% income tax on the remainder.

You can chose which rate you want to pay every year.

BUT if you receiving a pension from employment by HMG, you will pay tax on that pension in the UK. See Tax shock for British residents in Cyprus.

Regards,


Nigel Howarth
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