Tax Saving as Defence Tax Removed for Non Dom Expat in Cyprus

Happy New Year - Defence Savings Taxes are reduced from 30% to 0% for Expats Living and Working Abroad in Cyprus who qualify for the new 'non-dom' tax status for Expats.

Defence levy Savings taxes are now 0% for all non-domiciled Expat Cyprus investors and tax residents for savings, dividends, investments, property rental income and investments.

ProACT offer a Free Review of your family situation.  Expats must make written changes of your Will if you want to use the succession rules of your home country.  But consider the impact on inheritance tax at 40% in the UK or other countries. Consider who you want to benefit in your Will, is this possible with your arrangements?

How do you need to change your savings and investments to save tax on defence levy for bank interest, dividends, property rental?

Inheritance Tax Saving

The EU legislation requires you to settle you worldwide estate in your country of habitual residence. This can be different to domicile or tax residence. It also allows for a certificate of succession to be issued between member states to confirm any settlement of an estate in another jurisdiction

This means it is more likely all overseas assets are included in any inheritance tax assessment.

Origins – Where you are From

The key driver to the change was the introduction into Cyprus law of a statutory definition of where you are from – domicile.  If you are born in a country with parents from that country then your origin is that country – your domicile. You may be born in Ireland you’re your parents come to UK to bring you up but your origin is the home country Ireland.

If you live in Cyprus for 20 years (and a tax resident for at least 17 of those years) then your Domicile becomes your country of residence

What a 6 months.  Cyprus under scrutiny from the Troika came up with game changing tax changes that reposition Cyprus as a Tax Friendly location for Expats living, working, investing and retired abroad.

These changes impact on the laws of succession affecting Wills, Trusts, and in turn Property, Business and Investments.  The EU inspired legal changes allow new ways to save inheritance tax, a tax residence with no saving or investment taxes, maintain a pension tax environment of 5% income tax, discounts in property taxes on purchase and capital gains exemptions on overseas Cyprus property sales.

How does this affect your Family planning for inheritance, business and overseas property investment? 

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UK Dividend Tax Saving Boost for Expats U.K. Dividend taxes change radically under proposals planned to start for 2016-17. Currently UK company dividends are taxed at a flat 10% tax credit at source. This is to be abolished. New taxes are to replace these along with a tax free earnings that give Tax Saving opportunities to small investors and Expats.

We thought it would be best to let you all know that the Office of the Public Guardian is currently taking approximately 12 weeks to register a Lasting Power of Attorney instead of the 6 to 8 weeks as normal .

A UK registered Lasting Power of Attorney gives legal protection to individuals and their carers when assitance is needed to manage their affiars through decling health. Attorneys can be appointed for Land, Property and Health. British Expats can use these registered documents in the EU and commonwealth.

Talk to ProACT for Free Review and Advice on use of Lasting Powers of Attorney to Protect UK and Overseas

ww.proactpartnership.com/contact-us

Now every Expat must review their Wills to ensure that your Wishes are meet and your assets can be distributed as your wish in your Last Will & Testament. Consider Inheritance Tax, Savings Taxes and Property Title Deeds: to bring your  needs in line with the new legislation.

ProACT Expatriate Tax Saving Expat Experts – Free Review

ProACT can also assist and offer Free Review and advice to Make a Will, provide updates or revisions as required. You may want to make gifts to avoid Inheritance Tax. Gift to Family, Gift to Trust.

This may just give you piece of mind, but also ensures that when someone dies, unforeseen problems, expense and inheritance taxes are avoided.

Contact Us for a Free Review. Contact Us Free Review !!       

If you want to choose who benefits - make written changes to your Will.