# income tax; trust fund



## MrB (Jun 2, 2010)

Kalimera folks

We are renting a place in Drouseia (near Polis) from mid July for a month. We just wanted to spend a month or so there, to see where we might like to live permanently, as we are planning to retire to Cyprus.

I managed to see an accountant briefly last time in Cyprus to check out income tax. We are retired, and will live off our UK pensions (mostly OAP), and some income from my wife's trust fund. This question is a bit technical, as fund income is considered to be taken first as income in the fund (which has been from interest or dividends), and then as capital, when the income part has been "used up".

My impression is that Cyprus taxes will be:

On pension: 5%
On trust fund income:
10% on the interest portion, 15% on dividends, 0% on capital.

Any comments would be welcome, or contacts for a good accountant.

cheers

MrB


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## MrB (Jun 2, 2010)

Hi Folks

I've got a couple of additional contacts for accountants via an estate agent, the board and local press.

Most seem happy to meet for a preliminary chat, so I'll be doing this. My experience with accountants is like that with builders: there isn't an easy answer, and it's likely to be expensive 

cheers

MrB


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## Veronica (Apr 5, 2008)

MrB said:


> Hi Folks
> 
> I've got a couple of additional contacts for accountants via an estate agent, the board and local press.
> 
> ...


Hi Mr. B. 
My advice is to be very careful which 'accountants' you use. There are several British so called accountants over here who profess to know the tax rules but are totally inept and could end up costing you a fortune. 
We had the misfortune to be stupid enough to believe the glib talk of a British company who called themselves accountants and financial advisors. We lost money big style on a mis-sold investment and they also made such a mess of our accounts that it took a decent accountant a long time to sort them out and save us from heavy penalties from the tax man.


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## MarkNo (Jan 18, 2010)

Hi MrB

Your assumptions on tax are correct if the 'interest' is from deposits rather than funds. If the income in the trust is from 'collective investments' then there is no liability to 15% defence levy. If you can declare the trust fund income as capital there is no tax. You are allowed up to €19,500 income before paying income tax or €3417 of pension income before paying the 5%.
If you want specific advice let me know.

All the best

Mark


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## MrB (Jun 2, 2010)

MarkNo said:


> Hi MrB
> 
> Your assumptions on tax are correct if the 'interest' is from deposits rather than funds. If the income in the trust is from 'collective investments' then there is no liability to 15% defence levy. If you can declare the trust fund income as capital there is no tax. You are allowed up to €19,500 income before paying income tax or €3417 of pension income before paying the 5%.
> If you want specific advice let me know.
> ...


Mark

I was interested in your comments on trust fund taxes and Cyprus rules, particularly the rules about "collective investments". There are other beneficiaries in the fund, so this might apply.

This all might be a bit technical for the board, so I think you can send me a private message on the system.

Taleme!

MrB


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## Guest (Jul 8, 2010)

Veronica said:


> Hi Mr. B.
> My advice is to be very careful which 'accountants' you use. There are several British so called accountants over here who profess to know the tax rules but are totally inept and could end up costing you a fortune.
> We had the misfortune to be stupid enough to believe the glib talk of a British company who called themselves accountants and financial advisors. We lost money big style on a mis-sold investment and they also made such a mess of our accounts that it took a decent accountant a long time to sort them out and save us from heavy penalties from the tax man.


Hi Veronica, 

Not been on here for ages but we have finally made the move over and are settling in just fine!! 

I was wondering f you could give me the contact details of your accountant, we need some advice on tax for my husband who is working offshore! and we need someone who knows the tax rules inside out!

Thank you for your time.
Rgs Lynda


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## Veronica (Apr 5, 2008)

lyndamarcx said:


> Hi Veronica,
> 
> Not been on here for ages but we have finally made the move over and are settling in just fine!!
> 
> ...


Hi Lynda,
We are seeing our accountant on Saturday and we will ask him if he can take on any more work. If he can I will pm you his contact details. He does work for one of the developers that we deal with and it is through them that we met him but I know he is very busy and works extremely long hours so he may not want to take on any more work. I will let you know once we have seen him.

Veronica


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