Cyprus
Compared to the UK and other European countries there can be significant tax advantages to living in Cyprus, especially for British retirees.
As with any wealth and estate planning, the starting point is to understand what the rules are and then establish how you may benefit from them.
CYPRUS TAXES
From a tax perspective, the starting point is whether you are Cyprus resident or not. If you are a Cyprus tax resident or you will become one then, in common with most other countries, you will be liable to Cyprus income tax on your worldwide income. There is also capital gains tax, but only on the sale of property in Cyprus. Dividends and interest are subject to a Defence Contribution, which is a form of taxation.
There is no inheritance tax in Cyprus, although you may still be liable to UK inheritance tax if you are a UK domicile.
UK RESIDENTS WITH ASSETS IN CYPRUS
If you are not a Cyprus tax resident or have chosen not to become a tax resident of Cyprus you will still be liable to income tax and capital gains tax in Cyprus on your Cyprus assets. The same income or gains may also be taxable in the UK, with a credit for the taxes paid in Cyprus.
For more information on taxation in Cyprus CLICK HERE to download our free tax guide to Cyprus.
Cyprus succession law decrees how your assets should devolve upon your death, with a certain portion of the estate passing automatically to the spouse and the children. The laws stipulate the reserved portions depending on the number of children.
The succession laws in Cyprus are based on the concept of domicile and apply if you are domiciled in Cyprus at the date of death, although there is a specific exemption in the Cyprus legislation for anyone born in the UK or a Commonwealth State, irrespective of their domicile, provided you have a Will valid under Cyprus law.
WHY CHOOSE BLEVINS FRANKS?
- We have offices and qualified advisers in both Cyprus and the UK. This means we are able to provide initial and ongoing advice to help you reduce tax on your wealth and help you structure your assets in the most efficient manner, whether you are at the planning stages of moving to Cyprus, or you are already living in Cyprus, or if you are considering a return to the UK.
- Blevins Franks Financial Management Limited is authorised in the UK by the Financial Services Authority (FSA) for the conduct of investment and pension business. We are authorised to give advice in Cyprus through the EU Insurance Mediation Directive (IMD) – we are a UK company with an office in Cyprus. Our adviser in Cyprus is professionally qualified.
- We have first hand and up to date knowledge of the ever changing Cyprus tax regulations, as well as the opportunities available to reduce your tax liabilities.
- We take a holistic approach to protecting your wealth as we are able to give you integrated advice covering your Cyprus assets, your UK assets and any assets you own elsewhere.
- We provide a personal, ongoing, customer focused service and do not treat our clients as account numbers.
- So far we have been providing trusted services for over 35 years. We are here to guide you and your wealth today; in the future as your circumstances and objectives change, and eventually to help your spouse/partner and family when they inherit your assets.
The tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; an individual must take personalised advice.
