# Pension tax



## pearsews (Mar 15, 2011)

Hi, we are hoping to move to Cyprus. I am at present not paying any uk tax on my pensions as the total is under the tax threshold. (state pension + small private pension) Would I pay tax on these in Cyprus?


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## Veronica (Apr 5, 2008)

pearsews said:


> Hi, we are hoping to move to Cyprus. I am at present not paying any uk tax on my pensions as the total is under the tax threshold. (state pension + small private pension) Would I pay tax on these in Cyprus?


Not unless they come to over 19.000 Euros per year.


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## Toxan (Dec 29, 2010)

I believe that if you receive a pension from outside Cyprus, and you are a Cyprus resident, then you will pay 5% tax. there is an allowance of €3420 before tax is paid.


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## pearsews (Mar 15, 2011)

*pension tax*



Veronica said:


> Not unless they come to over 19.000 Euros per year.


Thanks Veronica, had a much lower amount posted by Toxan, so am a bit confused...nothing new for me!


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## Veronica (Apr 5, 2008)

Sorry, yes pensions are different to earned income. With earned income you don't pay any tax below 19k but with unearned income such as pensions Toxan is correct.


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## moonpreston (Mar 16, 2011)

Are you saying that tax is withheld from the pension payments? You should fill out a tax return - if you don't owe any tax or owe less than is withheld, you'll get any extra refunded - it works just like withholding and income on a W-2 - if you overpaid, you get the extra back.
______________


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## Veronica (Apr 5, 2008)

moonpreston said:


> Are you saying that tax is withheld from the pension payments? You should fill out a tax return - if you don't owe any tax or owe less than is withheld, you'll get any extra refunded - it works just like withholding and income on a W-2 - if you overpaid, you get the extra back.
> ______________


Tax is not withheld as pensions are paid from the UK.
However residents have to fill out tax returns and will get a Tax bill if they owe any tax.


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## Toxan (Dec 29, 2010)

The money is received gross in Cyprus, but you have to pay 5% tax on this, after the allowance.


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## Veronica (Apr 5, 2008)

Actually moonpreston, it may be true in other countries that you get any overpayment refunded but in Cyprus it dosnt work that way. Any overpayment is taken into account in your next tax bill .The Cyprus government are not keen to pay what they owe to people.


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## Guest (Mar 16, 2011)

It seems as a good idea to always pay a little to little to avoid refund problems

But its still strange that its allowed to not pay back. 

But it seems that Cyprus can be groupt with Bulgaria, Romania and some other EU members that cheat and dont follow the treaty. 

anders


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## Veronica (Apr 5, 2008)

Vegaanders said:


> It seems as a good idea to always pay a little to little to avoid refund problems
> 
> But its still strange that its allowed to not pay back.
> 
> ...


It isn't that it isnt allowed to pay back. They just don't rush to pay what they owe you and in the end you just get it off whatever you owe them next time.
But if you underpay they charge you more as a sort of fine so it is better to have them owing you money rather than the other way round.
Just try not to overpay by too much.

Unfortunately their methods are antiquated and not in line with the rest of Europe but maybe sometime in the future things will change. We can always hope


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## Toxan (Dec 29, 2010)

Part of life in Cyprus!


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