[Podcast] What expats need to know about the new UK & Cyprus double taxation treaty
There is a New UK Cyprus - UK Double Taxation Treaty (DT) from 2018 that means any form of Public Service Pension will now be taxed in your home country.
For UK Expats in Cyprus, Pension tax could rise from 5% to over 40%.
The pensions affected are any paid for from government funds, including all civil service, local authority, NHS, military and any other body where the pension funds come from government funds.
You can keep your tax under the old rules but must act now by electing to stick with the old DT. The election is a concession for 5 years to use the old DT rules, as opposed to the new rules.
If you elect for the 'old rules' you in practice will pay the same tax arrangements as for 2018 and before.
You should complete and submit the letter to elect to use the old rules from the Double Taxation ('DT') 1974.
Free Down Load - Pension Election Letter:
Contact us, ProACT EU Brexit for Expats Experts, for a free review and guidance.