MEU1 Rental Agreement

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Hawkeye
Posts: 4
Joined: 17 Jul 2019 18:18

MEU1 Rental Agreement

Post by Hawkeye » 22 Jun 2020 19:37

I have a few questions regarding the issuing of an MEU1.

My understanding is that if you wish to reside for more than 4 months, you need the MEU1 (Yellow Slip) as an EU Citizen.

When you have the interview, I have seen several references to

A) Needing a Rental Agreement or proof of House Purchase

and

B) the Rental Agreement needing to be 1 Years agreement.

I did touch base with someone who was staying with Family / Friends and although a bit of hassle they managed to get the immigration office to accept a letter written by the owners that the couple were staying there.

But what if you want to stay only 6 - 8 months initially ?

We want to spend a few months exploring the island with a view to eventually buying and are unsure which area, but don't want to stay a full year initially.


You are almost forced to enter into a 1 year tenancy agreement which is wasted money.

It would be much better for us to try a month or so in each place to get a feel for the place rather than having to do day trips.

So a couple of months each in Paphos, Larnaca and Famagusta for example.


Has anyone been in this situation.

Can they refuse an MEU1 when you attend the interview prior to the 4 month deadline if you only have 1 or 2 months or so left on your rental agreement ?

Do you have to wait 4 Months for the interview, if we intend to apply as soon as we land in Cyprus as I understand the interview can be at any time depending on the district. (and therefore you could still have 4 to 5 months left on the agreement, depending how fast they schedule the interview)


Also when you attend the interview, what format must the rental agreement be in ?


Can it be in English ?

Does it have to be witnessed or stamped by anyone (Can it be filled out by a rental agent then signed by both the landlord and tennant)

Is there a standard approved agreement I can get my hands on ?

I have seen places on VRBO. TripAdvisor etc that would be ideal as they are packaged with pool, internet etc included, but as you rent these via the web, there is no formal tenancy agreement.

So I will have to check out the various long term rental websites.

How do the tax authorities contact you to fill out the tax return if you move about or temporarily leave the island ?

I know it is a lot of questions

Has anyone been in this situation or know somoene in the immigration dept who can clarify ?



Nigel Howarth
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Re: MEU1 Rental Agreement

Post by Nigel Howarth » 23 Jun 2020 10:44

Hi Hawkeye

I see for your earlier posts that you're planning to move to Cyprus. In that case you'll need to have your application for an MEU1 in for processing by 31st December 2020.

There's nothing stopping you from having a rental agreement that gives each party a one month's written notice of termination (this is common practice.) All contracts need to have a revenue stamp - check out the Stamp Duty Law to see the rates, etc.

You can find suitable rental agreements on the Internet - e.g. House Agreement Cyprus

You'll need the wet copy of the rental agreement - when we moved to Cyprus we rented a house while ours was being built. Our agreement was in English signed by ourselves as the tenants and the owner (landlord.) And we found a place to rent by visiting the local Community Office and asking if they knew of anywhere.

You'll not need to register for tax until you move here permanently.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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Hawkeye
Posts: 4
Joined: 17 Jul 2019 18:18

Re: MEU1 Rental Agreement

Post by Hawkeye » 26 Jun 2020 18:35

Thanks Nigel

My information on the pros and cons of coming before or after the end of the Transition period is a bit sketchy.

When we made our viewing trip we were told that if we got in while the UK was in the EU we would qualify for free healthcare in retirement and be allowed to work in Cyprus. Also no minimum spend on a house.

If we did not, then we would have to apply as non EU Nationals on the Passport Scheme and have to spend over €300,000 + VAT on a Residence and not be allowed to work. I am unsure if we would get free healthcare in retirement.

We listened to a recording of “A place In The Sun” webinar were the lady from “Sold On Cyprus” expressed the opinion that the Chinese, Russians, Israelis & UAE arrivals etc were non EU Citizens, and were having no problems getting in.

Since our visit, Cyprus has introduced the new GESY (GHS).

My understanding is that if you pay Cypriot tax or receive a pension (I believe that applies to UK pensions), then you pay into the system.

My confusion is that the “Sold on Cyprus” lady said in Cyprus, people get free healthcare from age 60.

However my understanding was, as an expat, I would have to wait until age 67 to get an S1 form.

But what does the S1 form get me with the new system in place ?

It used to be the UK would pay the Cypriots to provide UK pensioners free healthcare under a reciprocal agreement.

Not sure how the new system or BREXIT will affect that.

There is a scenario that I never spend more than 183 days in Cyprus and thus never enter the Cypriot tax system (that would certainly be the case initially).

So I queried if I was liable to pay into the new scheme (answer pasted at end of post)

There are so many unknowns - The agents mention the good points, but nothing about healthcare, care for the elderly etc (other than good hospitals and cheap prescription charges vs UK)

Paphos has a lot of retirees, what happens if they need to go in a home.

What are the costs vs UK.

In the UK they just sell your house from under your feet and that pays for it.

So much more research and clarification needed !


Reply from GESY

We would like to inform that according to the criteria set by the GHS law, EU citizens who have their ordinary residence in the areas controlled by the Cyprus Government are beneficiaries when the following conditions apply:



1. Work in the areas controlled by the Cyprus Government or



2. Have acquired the right of Permanent Residence (MEU3 permit) or



3. Are Family members (spouse, child) of a GHS Beneficiary or



4. Meet the provisions of EU Regulation 883 (S1 holders)



When you fulfill one of the above criteria, then you will be able to enroll to the GHS as beneficiary. Since you will not reside in Cyprus more that 180 days within the year then you are not eligible for beneficiary enrollment.



Regarding the contributions let us mention you that the obligation of paying contributions in independent from the right of being a GHS beneficiary. All individuals that receive any income from Cyprus or abroad, regardless if this taxable or not, this must be declared to the Tax Department through Temporary Tax (0213) and Tax Self-Assessment (0313) and contribution will be applied there. The Tax Department is the responsible authority that should provide information regarding the process.



Thank you for contacting us, we remain at your disposal.

GHS Contact Centre
Health Insurance Organisation



Nigel Howarth
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Re: MEU1 Rental Agreement

Post by Nigel Howarth » 27 Jun 2020 10:35

Hi Haykeye

No-one can say with any certainty how things for Brits wishing to move to Cyprus will change after 31st December 2020. Much will depend on negotiates between the UK and Europe.

I'm registered with GESY and my pensions are paid in the UK - I'm also registered for tax here. I make no contributions to GESY because there a reciprocal agreement between Cyprus and UK whereby Cyprus pays for the healthcare of Cypriot pensioners resident in the UK and vice versa.

But I do make a small contribution towards the costs of prescriptions (€1/item) and diagnostic tests, etc. But these are minimal. Many of the local communities have residential homes for the elderly that are paid for by their residents. There's nothing here, as far as I am aware,

I got an S1 form at the age of 54 - you don't need to be 67. Th S1 form enables HM Customs & Excise to stop deducting UK tax on your pensions, etc - as tax on your income will be paid to the Cypriot authorities.

The webinar you listened to is out of date.

Cheers,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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The Bear
Posts: 14
Joined: 09 Jan 2016 20:09

Re: MEU1 Rental Agreement

Post by The Bear » 07 Jul 2020 12:26

Nigel Howarth wrote:
27 Jun 2020 10:35
Th S1 form enables HM Customs & Excise to stop deducting UK tax on your pensions, etc - as tax on your income will be paid to the Cypriot authorities.
The S1 is issued by DWP in the UK and is a registration for health care cover. The Cyprus Ministry of Health will issue confirmation that you've submitted the S1 certificate to them and that you are not subject to GeSY contributions. This does not automatically prevent, for example, banks making GeSY deductions from interest paid to you - you'd need to register the confirmation letter with your bank to stop that deduction at source.

Form DT-I (Double Taxation - Individual) is the HMRC form which gives someone tax-resident in Cyprus relief from UK income tax on pension income (and some other forms of income) confirmed by the Cyprus tax department as being subject to the Cyprus income tax regime. The completed form is submitted to the Cyprus tax department with a stamp of the required value affixed (was €80 a few years ago) so they may process it and send it directly to HMRC. It is not an EU-specific document.



Nigel Howarth
Site Admin
Posts: 2513
Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus
Contact:

Re: MEU1 Rental Agreement

Post by Nigel Howarth » 07 Jul 2020 17:12

Thanks The Bear

My mistake - its the form DT-Individual that enables HM Customs & Excise to stop deducting UK tax on your pensions, etc - as tax on your income will be paid to the Cypriot authorities.

Regarding the form S1, there may be an issue with reciprocal healthcare agreements for Brits moving abroad after the end of the transition period. Although Brits who move/have moved to an EU member state and registered with the authorities (MEU1 in Cyprus) before the end of the transition period will contnue to enjoy reciprocal healthcare agreements, it's uncertain whether those moving after the end of the transition period will enjoy the same benefit.

Cheers,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news

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