# Pensions and tax



## haymarket (May 23, 2010)

Can someone help us understand the tax rules. I li ve in Denmark and when I asked them about moving to Cyprus, they said we still have to pay Danish Tax due to the DT agreement. I have heard that people are paying 5% on their pensions from U.K. how can that be, they too have a DT agreement, surely the agreements are the same for all the EU countries? Or perhaps not!


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## potamiou (Jan 10, 2010)

Is Cyprus a member of the DDA? If so, then you can pay tax in either Denmark or Cyprus.


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## potamiou (Jan 10, 2010)

potamiou said:


> Is Cyprus a member of the DDA? If so, then you can pay tax in either Denmark or Cyprus.


Sorry, I'm causing confusion. Used to be called DDA, is now called DT or DTA. I do apologise


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## theresoon (Apr 11, 2008)

haymarket said:


> Can someone help us understand the tax rules. I li ve in Denmark and when I asked them about moving to Cyprus, they said we still have to pay Danish Tax due to the DT agreement. I have heard that people are paying 5% on their pensions from U.K. how can that be, they too have a DT agreement, surely the agreements are the same for all the EU countries? Or perhaps not!


I think your best bet is to ask an international tax accountant.


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## haymarket (May 23, 2010)

potamiou said:


> Is Cyprus a member of the DDA? If so, then you can pay tax in either Denmark or Cyprus.


Actually, they are telling me Denmark have reserved the right to tax pensions, and that not many countries have given up this right. Has Britain?


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## berni109 (May 28, 2010)

UK tax law is based on 2 terms residence and domicile.
it is possible to change your country of residence but there are a set of guidlines for this that have to be met - you can't just tell the tax man and expect him to accept that. if you can meet the criteria then you can have your pension taxed in your country of residence.
domicile is much more difficult and would require severance of almost all contact with your home country probably need to become a cypriot citizen and buy a plot in the local cemetery.
maybe something similar for Denmark but i dont know
bern


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## haymarket (May 23, 2010)

berni109 said:


> UK tax law is based on 2 terms residence and domicile.
> it is possible to change your country of residence but there are a set of guidlines for this that have to be met - you can't just tell the tax man and expect him to accept that. if you can meet the criteria then you can have your pension taxed in your country of residence.
> domicile is much more difficult and would require severance of almost all contact with your home country probably need to become a cypriot citizen and buy a plot in the local cemetery.
> maybe something similar for Denmark but i dont know
> bern


Thank you for a very clear explanation, now I understand more. It makes sense of course, and also one should think long and hard before severing all ties with your home country. Thank you once again.


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