# Qualifying for Cypriot tax whilst retaining UK property



## anne lamplugh (Feb 5, 2009)

Like many others planning a retirement in Cyprus we own a house in the UK which we wish to rent out for a few years(5) until we are sure we have settled and also to cover the cost of rental in Cyprus. In addition we have a UK flat which we rent out for investment but do not want to sell at present because of the UK market. Will this mean that we will have to lose out on the better cypriot tax rates? For our first year in Cyprus my husband will have no income other than from the properties so would we be better putting them in his name only- I will have a UK pension ? Advice would be appreciated.Anne


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## BabsM (May 24, 2008)

Hi Anne, welcome to the forum. 

Your pension will probably be taxed over here. Bit if I have understood the rules correctly, the rental income will probably be subject to UK tax because it derives from the UK, whoever's name it is in. However, until you complete and submit the application for exemption from UK taxation under the double taxation treaty I would assume nothing since HMRC can be unpredictable!!!! It is possible that they will decide the pension can be taxed in Cyprus and the rental income in the UK!


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## anne lamplugh (Feb 5, 2009)

BabsM said:


> Hi Anne, welcome to the forum.
> 
> Your pension will probably be taxed over here. Bit if I have understood the rules correctly, the rental income will probably be subject to UK tax because it derives from the UK, whoever's name it is in. However, until you complete and submit the application for exemption from UK taxation under the double taxation treaty I would assume nothing since HMRC can be unpredictable!!!! It is possible that they will decide the pension can be taxed in Cyprus and the rental income in the UK!


Thanks Babs, sounds a bit suck it and see!


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