Cyprus - Tax residency and Pension Income Tax

Update:

 

All Cyprus tax residents are taxed on income accrued or derived from all sources in Cyprus and abroad. Individuals who are not residents for tax in Cyprus are taxed on income from sources in Cyprus. An individual is resident for tax in Cyprus if he spends more than 183 days in any one calendar year in Cyprus.

Days in and out of Cyprus are calculated as follows:

  • The day of departure from Cyprus counts as a day of residence outside Cyprus.
  • The day of arrival in Cyprus counts as a day of residence in Cyprus.
  • Arrival and departure from Cyprus in the same day counts as one day of residence in Cyprus.
  • Departure and arrival in Cyprus in the same day counts as one day of residence outside Cyprus.

Foreign pension such as income from a QROPS is taxed at a concessionary rate of 5%. An annual exemption or allowance of €3.417 is granted. (2008) Cyprus removed inheritance tax in January 2000 and there are no wealth taxes.

 

 

Gerard Associates Ltd. Financial Advisory Services does not provide individual tax advice, and nothing contained in this briefing should be construed as such. We make every effort to ensure the accuracy of the information but cannot be held responsible for any liability arising.

It is essential that all clients seek tax advice specific to their own personal circumstances with the relevant tax professional of the jurisdiction(s) in which you are liable to tax.

This has been prepared based on our understanding of current legislation and tax practice as at the date above. However, these are subject to change, and may result in income tax consequences different from those detailed below.

We cannot accept responsibility for its interpretation or any future changes to law.