# Cyprus Tax



## Big-bad_dave (Jul 17, 2014)

Hi,

Both my wife and I are retired...We both have Cyprus tax numbers, not wanting to appear daft or anything, but does that mean we have a combined 39,000 Euro 0 percent tax threshold? - as I think it would be difficult to prove that we are both under the 19,500 threshold each, and only one bank account..

Sorry about any confusion!

Dave


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## Veronica (Apr 5, 2008)

I think it is 19.500 per person and you have to submit separate tax returns. If one of you has more than 19.500 per year you will probably have to pay some tax although I think it is only on the extra amount not on all of it.
You should probably go to an accountant who will know all the rules and also a decent accountant will be know how to save you some money.


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## Big-bad_dave (Jul 17, 2014)

Thank you Veronica, I'll give them a try!


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## nhowarth (Dec 6, 2017)

In Cyprus you can each choose to be taxed as a retiree on your foreign pension or as a regular tax payer.

If you choose to be taxed as a retiree, your annual allowance is currently €3,420 and you will be charged 5% on anything over that figure.

If you choose to be taxed as a regular taxpayer your annual allowance is currently €19,500 and then:

Income between €19,501 and €28,000 is taxed at 20%
€28,001 - €36,300 @ 25%
€36,301 - €60,000 @ 30%
Over €60,000 @ 35%

You are each taxed separately; there is no married couples allowance or transfer of allowances, etc. as there is in the UK.

Regards,


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## nhowarth (Dec 6, 2017)

Just to add to my previous post I use the European Central Bank exchange rate to convert my sterling income to Euro.

Visit https://www.ecb.europa.eu/stats/pol...change_rates/html/eurofxref-graph-gbp.en.html and enter the from and to dates 01-01-2017 and 31-12-2017, then take the average exchange rate over the period and use that figure in you calculation.

Regards,


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## Veronica (Apr 5, 2008)

Big-bad_dave said:


> Thank you Veronica, I'll give them a try!


One word of caution, don't go to an English accountant. There are some very dodgy Brits who claim to be accountants but are either not proper accountants or simply just lousy at their jobs and certainly do not know enough about the system in Cyprus. One in particular who is a crook and I am amazed he is still operating her in Paphos after so many years. He was our first accountant and scammed us big time telling us he had done our VAT and asking us for payments for it when he had not even registered us for VAT.
It took our new accountant ages to sort out the mess and save us from getting into trouble with the VAT man.


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## GSmith (Nov 9, 2015)

Big-bad_dave said:


> Hi,
> 
> Both my wife and I are retired...We both have Cyprus tax numbers, not wanting to appear daft or anything, but does that mean we have a combined 39,000 Euro 0 percent tax threshold? - as I think it would be difficult to prove that we are both under the 19,500 threshold each, and only one bank account..
> 
> ...


Hi Dave, I have a guide to Cyprus Tax that is published each year. If you send me an email address by PM I'll send you a copy. It's 2017 rates so relevant if you are completing a return for last year. 

Nigel's figures are correct but from your post I'm guessing that you are also including interest or investment income which is taxed differently from pension or earned income. Interest and investment income (and some other income) is taxed under the 'Special Contribution for Defence' and it's likely you are exempt from this.

I'd like to pick up on Veronica's last point. Whilst I accept that there are people in Cyprus claiming to be accountants and you need to be extremely careful, there is one very good UK & Cyprus qualified and licensed, British accountant in Paphos. I also work in an industry where a few bad apples ruin the reputation of the rest and just wanted to put the record straight, sorry Veronica.


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## nhowarth (Dec 6, 2017)

GSmith said:


> I'm guessing that you are also including interest or investment income which is taxed differently from pension or earned income. Interest and investment income (and some other income) is taxed under the 'Special Contribution for Defence' and it's likely you are exempt from this.


I looked into this before we moved to Cyprus and put our investments into products that paid on capital gain rather than interest. Capital gains in Cyprus are not taxed (unless it results from the sale of a property in Cyprus).

Incidentally pwc published their 2018 tax guide a few days ago. You can find it at https://www.pwc.com.cy/en/publications/assets/tax-facts-figures/tff118-eng-final.pdf

Regards,


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## GSmith (Nov 9, 2015)

nhowarth said:


> I looked into this before we moved to Cyprus and put our investments into products that paid on capital gain rather than interest. Capital gains in Cyprus are not taxed (unless it results from the sale of a property in Cyprus).
> 
> Incidentally pwc published their 2018 tax guide a few days ago. You can find it at https://www.pwc.com.cy/en/publications/assets/tax-facts-figures/tff118-eng-final.pdf
> 
> Regards,


Thanks Nigel, useful info and correct. There has been a change however. Since 2015'Non Domiciled' individuals (someone non- Cyprus resident for 17 of the last 20 years) are not subject to Special Contribution for Defence which applies to Interest income and Dividends. A word of caution though, individuals need to apply for this 'Non-Dom' status and its a fairly straightforward procedure.


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## Veronica (Apr 5, 2008)

GSmith said:


> I'd like to pick up on Veronica's last point. Whilst I accept that there are people in Cyprus claiming to be accountants and you need to be extremely careful, there is one very good UK & Cyprus qualified and licensed, British accountant in Paphos. I also work in an industry where a few bad apples ruin the reputation of the rest and just wanted to put the record straight, sorry Veronica.


Yes I know of at least one very good one but he is very expensive. I am sure there are others that I do not know about.
If anyone wants the name of the one that ripped us off and has ripped of several other people we know I am happy to give it in private message. Can't name and shame publicly here.


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## GSmith (Nov 9, 2015)

Veronica said:


> Yes I know of at least one very good one but he is very expensive. I am sure there are others that I do not know about.
> If anyone wants the name of the one that ripped us off and has ripped of several other people we know I am happy to give it in private message. Can't name and shame publicly here.


You get what you pay for Veronica. An 'expensive' fully qualified accountant may be a lot cheaper in the long run depending on your requirements.


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## Veronica (Apr 5, 2008)

GSmith said:


> You get what you pay for Veronica. An 'expensive' fully qualified accountant may be a lot cheaper in the long run depending on your requirements.


You seem to have assumed we went to someone who is cheap. That was NOT the case. Our current accountant is fully qualified but does not charge anything like as much as he did and he is really good at his job.


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## GSmith (Nov 9, 2015)

Veronica said:


> You seem to have assumed we went to someone who is cheap. That was NOT the case. Our current accountant is fully qualified but does not charge anything like as much as he did and he is really good at his job.


I seem to have offended you Veronica and I apologise.


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## Rigger- (Apr 7, 2020)

For 2020:
https://www.pwc.com.cy/en/publications/assets/tff-eng-2020-march-engl.pdf

Can anyone please recommend me a good tax accountant in Limassol please?

Kind Regards,


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## nhowarth (Dec 6, 2017)

Hi Rigger

Contact these people - Cyprus Company Formation - Make Your Business Tax Efficient

It's run by a friend (Paul Britton) and his wife Catherine.

Cheers,


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## jarnot1 (Nov 19, 2012)

can anyone tell me when I should submit tax return for 2019? Thank you


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## nhowarth (Dec 6, 2017)

Hi Jarnot1

You should submit your tax return as soon as the form's available on TAXISnet - https://taxisnet.mof.gov.cy/basic/displayMain.do

Cheers


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## kintyrebrian (Aug 16, 2010)

I would appreciate the name if possible.
Forewarned id forearmed

Not allowed to give you my email address -not enough posts

Thanks


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