Spring is here and along with it a new broom brings more tax changes and tax saving opportunities for Expats.  The UK has the annual tax budget on March 16th, while Cyprus has introduced more changes to Permanent Residency Rules for Cyprus Property Owners.  Meanwhile Property Transfer Tax remains discounted for 2016 offer large tax saving for expats with Cyprus property contracts of sale – but no title deeds yet.

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