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Loading ...CYPRUS - INCOME TAX
For those of you thinking of relocating to Cyprus, whether to retire or to continue working there, here is some news from Travel Advice Pages:
As from 1st January 2008, the standard method of taxation in Cyprus is as follows:
The first 19,500 Euros (GBP 15,600) of income is tax free. The next 8,500 Euros (GBP6,800) is charged at 20%, the next 8,300 Euros (GBP 6,640) is charged at 25%, with the balance charged at 30%.
As an example, a UK pension of 30,000 Euros (GBP 24,000) would have a tax liability of 2,200 Euros (GBP 1,760)
A special rate exists for pension income. Tax at 5% is charged after deduction of 3,417 Euros (GBP 2,733). Using the example of a pension of 30,000 Euros (GBP 24,000), applying the 5% rate would result in a tax liability of 1,329 Euros (GBP 1,063) which means you would not opt for the standard method.
All figures are approximate and will depend on the prevailing Euro - GBP exchange rate.
Bear in mind that UK Government and Military Pensions should be deducted from gross pension income as those pensions must remain subject to UK tax.
This information confirms Cyprus as a benign tax regime for UK pensioners or those on a low income.
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