Cyprus

Besides income tax on employment and pension income, Cyprus imposes ‘defence contribution’ of up to 17% on interest and dividends – but most British expatriates are exempt for their first 17 years of residence. Foreign pension income benefits from a favourable tax regime, and capital gains tax is only levied on Cyprus real estate.

Expert advice is essential to understand what the rules mean for you, how they interact with UK taxes, and how you can use them to your advantage.

There’s no inheritance tax in Cyprus, but Cyprus law does apply ‘forced heirship’. This means that your spouse and children will inherit a pre-defined proportion of your estate, regardless of your intentions. You may be able to override this rule through an EU regulation that allows you to apply British law to your estate. But the process is complicated, and there may be unintended consequences.

And while Cyprus doesn’t have an inheritance tax, your worldwide estate may remain liable to UK inheritance tax for up to 10 years.

We can present all legitimate options to ensure your estate is distributed according to your exact wishes while protecting your heirs from paying more tax than necessary

Expatriates have a range of options for accessing their UK pension savings, including Qualifying Recognised Overseas Pensions Schemes (QROPS). We can advise you on the pros, the cons and the tax implications of each option, so you can make a fully informed decision on the best solution for you – Cyprus can offer some attractive tax advantages for UK pensions.

Our specialist expertise can make sure your finances are structured as tax efficiently as possible for Cyprus, with an investment strategy personalised for you.

We have access to some of the world’s best investment managers to make sure your money works as hard as it can.

Speak to Blevins Franks to take full advantage of the tax and investment opportunities available to British expatriates living in Cyprus. 

Arrange a free consultation with a local adviser.

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; individuals are advised to seek personalised advice.