# Re: Bank transfers



## Janetp (Jan 24, 2013)

*Re: Bank transfers*

Hi there

My husband and I will be moving over in the next 2 years. I was looking for information on transferring private pension between UK & Cypriot Bank accounts. Is this simple enough to do or do we have to go through one of the transfer companies. 

Thank you 
Janet


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## Veronica (Apr 5, 2008)

I think most people tend to leave their pensions in Uk bank accounts and bring over what they need every so often especially since the problems we had with banks over here.
If you want to bring monry over you will find that you get better value using an exchange company. The bank charges for moving money from the UK to a Cypriot bank are higher than what a good exchange company will charge.

Note. I will delete the posts you made in error on another thread for you.

Regards
Veronica


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## Janetp (Jan 24, 2013)

Thanks Veronica for your reply, will look into exchange companies, do you recommend any & thanks for deleting that post


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## Veronica (Apr 5, 2008)

We use excel currencies.


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## Janetp (Jan 24, 2013)

Thak you Veronica will have a look Janet


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## Talagirl (Feb 24, 2013)

Yes, I definitely agree with the advice given by Veronica to use a currency exchange company to transfer your funds as and when you need them. We have tried several over the past 10 years and have been happy with Currency Fair since 2011. Their exchange rate is very good and there are no hidden charges as they charge a flat rate of €3 to do the transaction. Our bank in Cyprus charges €2 - €10 when it receives the funds depending on the amount being transferred. From beginning to end it takes just over 2 hours for the transaction to be completed and the funds to be available here in Cyprus.


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## Janetp (Jan 24, 2013)

Thank you, we are going to look into it,


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## Rema (Aug 12, 2012)

Hi, we use FCExchange. Their rates are good and I always cross reference other rates using Bloomberg at Foreign Exchange Rates: Cross Rates Of World Currencies - Bloomberg 

Dependent on how much you want to exchange rates do vary - the more you exchange the better the rate and FCExchange don't make any additional charge at all. At this end it's dependent on the policy of your bank and if they have a transfer agreement with the UK bank sending the funds. This is worth checking out prior to opening an account here as if the sending bank has to use an inter-mediatory bank then charges can mount up.

Hope this is helpful.


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## Davetheeagle (Jun 5, 2014)

A better option once you are non UK residents, open a current account with LLoyds bank international.

They will give you Stirling and Euro debit cards and free International transfers if you maintain a minimum balance or pay GBP20/month.

Check out the web site.

Would also suggest if you will be moving permenantly out of UK, think about a QORPS pension transfer. Just did mine with a German based UK broker who used Momentum in Malta.

Benefits, You can take 30% tax free on commencment, which we are using to fund our purchase, projected drawdown based on 6% growth will still be greater than the guarantee I had with my BT & Fidelity pensions in UK. Another benefit is no annuity has to be purchased and upon death all funds go to spouse/kids tax free.

Also if your pension is paid in UK and is over tax threshold you will be taxed in UK.


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## Veronica (Apr 5, 2008)

Davetheeagle said:


> Also if your pension is paid in UK and is over tax threshold you will be taxed in UK.


It is far better to be taxed in Cyprus. The allowance is 19.5K before paying anything then 20% on the remainder. For anyone who has a large income they can choose instead to pay 5% on all income. Either way its a lot less than you would pay in the Uk.


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## Veronica (Apr 5, 2008)

Actually to be accurate this is the way taxation here works.

In Cyprus you can choose one of two taxation methods. You can choose to go with the personal allowance of 19.500euros before tax or you can choose to pay 5% on all of your income if you have large pensions and income from investments etc.

Therefore most British retirees who have only their UK government pension will pay no tax at all if they choose the personal allowance. Those who have extra income from personal pensions, investments etc can decide which method to choose depending on which works out most beneficial for them. Below is a table of taxation rates.

– up to EUR19,500 nil

– from EUR19,501-28,000 20%

– from EUR28,001-36,300 25%

– above EUR36,300 30%

In order to qualify you will only need to live in Cyprus for a minimum of 183 days per year. Another advantage is the fact that the inheritance tax in Cyprus has been abolished

Excerpt from my website


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## mdekkers (Jul 3, 2013)

Veronica said:


> Actually to be accurate this is the way taxation here works.
> 
> In Cyprus you can choose one of two taxation methods. You can choose to go with the personal allowance of 19.500euros before tax or you can choose to pay 5% on all of your income if you have large pensions and income from investments etc.
> 
> ...


Don't forget the "Special Contribution"

2013
First 2.500 Nil
From 2.501 - to 3.500 2,5% (minimum €10)
From 3.501 - to 4.500 3,0%
Over 4.500 3,5%
2014
First 1.500 Nil 
From 1.501 – to 2.500 2,5% (minimum €10)
From 2.501 – to 3.500 3,0% 
Over 3.500 3,5% 

Martijn :ranger:


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## Veronica (Apr 5, 2008)

mdekkers said:


> Don't forget the "Special Contribution"
> 
> 2013
> First 2.500 Nil
> ...



What special contribution is this ?


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## mdekkers (Jul 3, 2013)

Veronica said:


> What special contribution is this ?


Check it out here, page 10

My previous accountant was not aware of this, costing me a small fine. My current accountant is on top of everything 

Martijn :ranger:


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## Baywatch (Mar 30, 2014)

Veronica said:


> What special contribution is this ?


Defense contribution tax. But not on pensions from abroad

http://www.mof.gov.cy/mof/ird/ird.nsf/dmlfaq_en/dmlfaq_en?OpenDocument


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## mdekkers (Jul 3, 2013)

Baywatch said:


> Defense contribution tax. But not on pensions from abroad
> 
> Inland Revenue Department - FAQ


I think this is different from the defense contribution. that is discussed on page 23 of the booklet I linked.

Martijn :ranger:


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## Veronica (Apr 5, 2008)

I think you will find it is only for people who are working and for PRIVATE SECTOR pensions, not for government retirement pensions.


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## mdekkers (Jul 3, 2013)

I am not sure - there is a column for pensioners and one for private sector pensioners. As I am working, and get an income, I know what applies to me. Pension is still some way off 

Martijn :ranger:


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## Baywatch (Mar 30, 2014)

mdekkers said:


> I am not sure - there is a column for pensioners and one for private sector pensioners. As I am working, and get an income, I know what applies to me. Pension is still some way off
> 
> Martijn :ranger:


It is the defense tax.


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## Veronica (Apr 5, 2008)

Baywatch said:


> It is the defense tax.


Yes that is what we have to pay as a company.


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## Baywatch (Mar 30, 2014)

Veronica said:


> Yes that is what we have to pay as a company.


Yes and as you said if you work or have a private pension in Cyprus


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## bencooper (Mar 20, 2013)

The Special ("Defence") Tax is applied to worldwide bank interest (normally inconsequential at current rates), dividends and I believe Cyprus rental income, for tax resident individuals, and companies alike and as described in the PWC literature. This isn't new but the rates may have changed from last year, and I wasn't aware of any banding - I thought the tax applied immediately?


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## Baywatch (Mar 30, 2014)

bencooper said:


> The Special ("Defence") Tax is applied to worldwide bank interest (normally inconsequential at current rates), dividends and I believe Cyprus rental income, for tax resident individuals, and companies alike and as described in the PWC literature. This isn't new but the rates may have changed from last year, and I wasn't aware of any banding - I thought the tax applied immediately?


So state pension abroad is a good income to not be affected


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## stevedb45 (Mar 7, 2013)

TransferWise is an excellent company recently invested in by Richard Branson

If you need to transfer money then your first transfer is free - https://transferwise.com/u/d4253

Exchange rates are very competitive and the actual process itself is very simple (no long form filling)


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## mdekkers (Jul 3, 2013)

stevedb45 said:


> TransferWise is an excellent company recently invested in by Richard Branson
> 
> If you need to transfer money then your first transfer is free - https://transferwise.com/u/d4253
> 
> Exchange rates are very competitive and the actual process itself is very simple (no long form filling)


I just started using them, and was very happy - will be using them for personal as well as business payments...

Martijn :ranger:


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## zach21uk (Jun 26, 2014)

I have been using TransferWise for a while and find them to be VERY good.


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## Cat Lady (Dec 16, 2008)

Janetp said:


> Hi there
> 
> My husband and I will be moving over in the next 2 years. I was looking for information on transferring private pension between UK & Cypriot Bank accounts. Is this simple enough to do or do we have to go through one of the transfer companies.
> 
> ...


Since moving here (Paphos) over 6 years ago we always use Currency Solutions. They are friendly, efficient and totally reliable. We have recommended them to friends and, they too, are always completely satisfied. Hope this helps. Cat Lady.


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## PeteandSylv (Sep 24, 2008)

I have been using Currency Fair for many years very happily. Their website is clear and easy to use. I can withdraw money from a UK bank account and have it exchanged and in my BoC account the next day usually. Their exchange rates always seem to be the best and the only charge made is €3 when funds are withdrawn. The whole operation is on-line without needing to call anyone.

Pete


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## Talagirl (Feb 24, 2013)

Well said Pete!

We have used various methods of transferring money and since we found Currency Fair have found no reason to look elsewhere.


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## David_&_Letitia (Jul 8, 2012)

PeteandSylv said:


> I have been using Currency Fair for many years very happily. Their website is clear and easy to use. I can withdraw money from a UK bank account and have it exchanged and in my BoC account the next day usually. Their exchange rates always seem to be the best and the only charge made is €3 when funds are withdrawn. The whole operation is on-line without needing to call anyone.
> 
> Pete


I am a newbie to Currency Fair, having opened an account with them on Sunday and can thoroughly recommend the simplicity of use, the excellent rates of exchange and the low cost of €3 per transaction. To open an account, I just needed to upload a scan of my passport and 2 different forms of ID with address (I used a bank statement and a utility bill). By late Monday morning, I was informed that my ID had been verified and my account was open. By Mon evening I had made my first transfer from my UK account, exchanged it for Euros and paid my rental agent all online. The site is intuitive and easy. Highly recommended.


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## expatme (Dec 4, 2013)

zach21uk said:


> I have been using TransferWise for a while and find them to be VERY good.


I would be interested to hear what they charge for transactions after the free first time transfer?


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## mdekkers (Jul 3, 2013)

expatme said:


> I would be interested to hear what they charge for transactions after the free first time transfer?


It depends on the amount, under (I think) £200 it is a flat fee. To give you an idea how this works, we sent €2000 the other day from a UK business to our business here. The deal was closed today, at the following rates and fees:

SENT OUT 13:43 18 Sep 2014 GMT
TOTAL COST 1603.5 GBP
SERVICE FEE 7.98 GBP 
AMOUNT CONVERTED 1595.52 GBP
RECIPIENT GETS 2010.61 EUR (by local bank transfer)
EXCHANGE RATE 1 GBP = 1.26016 EUR

[edit] just to clarify, when making the transfer, we said "we want to send €2000" and transferwise will then do their best to get the best fx rates possible. As you see, we got €10.61 more then requested. It can also swing the other way though. Then there are ways to guarantee "make sure receiving party gets "x"" etc.
Now we are just waiting to get nailed by the local bank, for having the temerity of transferring money into our account. On that note, the only bank I have been able to find locally with a somewhat reasonable transfer in/out fee structure is SocGen Cyprus. I will probably be moving to them soon....

Martijn :ranger:


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## PeteandSylv (Sep 24, 2008)

I have not received any charges for receiving money in from Currency Fair in Laiki or Bank of Cyprus.

I must admit I find this surprising as BofC seems to make a charge every time one of their tellers passes wind.

Pete


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## mdekkers (Jul 3, 2013)

PeteandSylv said:


> I must admit I find this surprising as BofC seems to make a charge every time one of their tellers passes wind.


Piraeus had the temerity of calling me to see "if all was ok with the business" and then charging me € 15 for "corporate communication charges"

... nice try, but it didn't fly...

Martijn :ranger:


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## expatme (Dec 4, 2013)

Thank you for the reply. We shall continue with currency fair. Our bank charges us €2 to receive €4200.


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## David_&_Letitia (Jul 8, 2012)

expatme said:


> Thank you for the reply. We shall continue with currency fair. Our bank charges us €2 to receive €4200.


This explains something for me. I transferred €4,800 to our rental agents bank (Alpha). As it was our first ever transaction, and less than the amount I was holding in Currency Fair, I did not realise that the €3 charge was deducted from the amount being transferred, so my transfer ended up as €4797. The agent was embarrassed to ask, but did say that they needed another €5 - presumably the €2 difference being the receiving bank 'cut'.


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## expatme (Dec 4, 2013)

David_&_Letitia said:


> This explains something for me. I transferred €4,800 to our rental agents bank (Alpha). As it was our first ever transaction, and less than the amount I was holding in Currency Fair, I did not realise that the €3 charge was deducted from the amount being transferred, so my transfer ended up as €4797. The agent was embarrassed to ask, but did say that they needed another €5 - presumably the €2 difference being the receiving bank 'cut'.


Hmm wished that I had clarified that for you when we discussed banking.

Have a great time over the water.


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