# Finance info please



## jkelly (May 21, 2009)

Good morning all you guys out there in Cyprus -

Slowly building all our info for moving out there but one thing is I can't get my head around is the money transfer issue.

To live we will have a small company pension and a draw down pension and after a couple of years my state pension will be here.

I pressume that all these parts will be paid in Sterling - also drawn in a monthly fasion.

Tell me if I am wrong, but I will require a central British bank for them to be put in - 
and this is the part I can't sort - do you exchange into the Euro at that point on a monthly basis or at a three monthly basis - 6 month? because we will require a monthly income to pay bills etc - 

There are mony exchange companies who get the best deal over a few months but that is no good if we require the money at monthly intervals ( or is it good?)

As you see I'm a bit confused but if someone could give me a few ideas on the best way please, that will be the last piece of the jigsaw for us to move.

Thanks

Jim


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## JonandGaynor (Jun 8, 2009)

Hi Jim
There are several considerations to be made:
From what i have found out to date you will need to keep a British account active for transfers.
Money exchange companies won't transfer sterling and if using one of these then the transaction will have to be in euro, also most will have a minimum 'free' transfer limit in the region of £2-3k. I've been looking into the smallest free transfers available and this turned out to be HiFX who have a £250 limit, the draw back being the smaller amount being transfered the worse the exchange rate.
All banks will transfer into your Cyprus account but again most will charge, my bank, Barclays, charge £15 per sterling transfer and £25 for euro - day light robbery! 
You also will have to remember you will get a much more favourable bank euro rate for sterling to euro in Cyprus so you would have to keep a check on the rates offered in Cyprus as to whether it's better to transfer sterling at a small cost to get a better rate or a free euro transfer through a company such as Hifx.
Sorry if i've added to the confusion:confused2:
Regards
Jon


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## Geraldine (Jan 3, 2009)

Hi,

Is it true that Nationwide will transfer money to your Cyprus sterling account foc ? I'm afraid I too can't get my head around the transfering of money over.

Geraldine.


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## jkelly (May 21, 2009)

*thanks*



JonandGaynor said:


> Hi Jim
> There are several considerations to be made:
> From what i have found out to date you will need to keep a British account active for transfers.
> Money exchange companies won't transfer sterling and if using one of these then the transaction will have to be in euro, also most will have a minimum 'free' transfer limit in the region of £2-3k. I've been looking into the smallest free transfers available and this turned out to be HiFX who have a £250 limit, the draw back being the smaller amount being transfered the worse the exchange rate.
> ...


Thanks Jon

So I think it is best to transfer a large ammount through a money transfer company to get ahead of myself certainly every 6 months if not a year, it means delving into our savings for starters but I suppose once we are up and running it will be OK.

Thank you


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## BabsM (May 24, 2008)

jkelly said:


> Good morning all you guys out there in Cyprus -
> 
> Slowly building all our info for moving out there but one thing is I can't get my head around is the money transfer issue.
> 
> ...


Hi Jim, 
Your State Pension can be paid directly into a Cyprus bank account in Euros. Friends of mine get theirs this way. Some bigger Occupational Pension (OP) companies will also pay directly into a Cyprus bank account in Euros. The handling charges vary according to the scheme being used. Recently my OP company changed their 'supplier' and I am now getting slightly more per month because the charges have dropped. The exchange rate is supposedly more than you would get if you transfered money because of the larger quantities of money that they are changing up. 

We also have 'International' accounts with the offshore branch of a big UK bank. One is a Sterling account and the other is a Euro account. We have debit cards for both accounts and use the Euro debit card over here. We can transfer money from one account to the other over the phone when the exchange rates are right without extra charges. The only drawback is that I get charged for drawing cash out of the Euro account over here because I haven't found an ATM for the UK bank over here. I think there's one in Nicosia. 

Otherwise we draw cash out of a UK bank account when in England and bring it back for exchanging over here. You get a better rate of exchange here doing that than you would in England. You are limited to £10k of cash each time otherwise you have to declare it but we never bring that kind of money over !

I prefer to have the money paid in to our accounts here if possible as it gives us ready cash to draw out and the comfort of knowing we have money arriving in Cyprus regularly. The International account is a useful back up for the companies that won't pay into a foreign bank account and it keeps us an account in the UK, which is useful too.

I suggest you ask your pension provider if they have a scheme to pay abroad and what they charge for doing it.


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## jkelly (May 21, 2009)

Morning Babs

Thats realy good info - pleased about the state pension that can be paid in Euros.

I think thats the last piece of jigsaw in place, we are comming over next spring to stay in an apartment for only a couple of weeks but intend to live as we would if we were permenantly there ie shopping for food etc and eating as we would if we lived there to give us an idea of costs, also we will speak to a solicitor to find out that side of costs.

Then hopfully if all is OK we will plan the move date.
Just thinking - what a great site this is to get information.

Jim


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## Veronica (Apr 5, 2008)

jkelly said:


> Morning Babs
> 
> Thats realy good info - pleased about the state pension that can be paid in Euros.
> 
> ...


Don't just speak to one solicitor as costs vary. Some will give you a fixed charge while others will charge depending on the cost of the property etc. Get quite a few quotes.

Veronica


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## potamiou (Jan 10, 2010)

The State Pension can also be paid weekly into a UK bank account, as can all your other pensions (albeit monthly rather than weekly). You can use your UK Debit cards to get cash out of any of the CY bank machines, and you will get the UK exchange rate, which is usually satisfactory. You will need to open an account with a Cypriot bank to pay direct debits (EAC, CYTA etc). We find this is much the easiest way of doing things. Also, so long as you no longer have financial commitments in the UK and all your UK-sourced money is spent here, you can pay CY Income Tax instead of UK (it is a LOT less!)
Good Luck


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## jkelly (May 21, 2009)

Veronica said:


> Don't just speak to one solicitor as costs vary. Some will give you a fixed charge while others will charge depending on the cost of the property etc. Get quite a few quotes.
> 
> Veronica


Thanks Veronica will do.

Jim


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## BabsM (May 24, 2008)

potamiou said:


> The State Pension can also be paid weekly into a UK bank account, as can all your other pensions (albeit monthly rather than weekly). You can use your UK Debit cards to get cash out of any of the CY bank machines, and you will get the UK exchange rate, which is usually satisfactory. You will need to open an account with a Cypriot bank to pay direct debits (EAC, CYTA etc). We find this is much the easiest way of doing things. Also, so long as you no longer have financial commitments in the UK and all your UK-sourced money is spent here, you can pay CY Income Tax instead of UK (it is a LOT less!)
> Good Luck


Yes you can do it by using UK debit cards in ATMs here but you may pay a charge for withdrawing money abroad, possibly a charge for using an ATM other than your bank's and you will get the UK exchange rate which is usually lower than the ones in Cyprus (unless you are using a card from the Nationwide). We found this to be expensive which is why we got an International (Offshore) Account. 

The situation as to who can pay tax here is down to the UK Inland Revenue (HMRC). You have to be living outside the UK for more than 183 days in any financial year and you cannot be 'normally resident' in the UK ie you must have severed the ties with the UK. If you own property in the UK, get earnings that derive from the UK or have any kind of interest in the UK, even if you are out of the country for the required time then HMRC may decide you are still normally resident in the UK. If this happens you may end up paying tax in BOTH countries. 

The situation about domicile and residence has been complicated recently by UK police investigations as part of the MPs expense claim fiasco where some members of parliament and the House of Lords have been claiming they are resident abroad to evade taxes, and it looks as the rules will be operated more tightly from now on. If you retain property in the UK then you may still be considered as normally resident in the UK. To find out more have a look at the HMRC website ( http://www.hmrc.gov.uk/CNR/residencedomicile.htm) and the DirectGov website.


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## jkelly (May 21, 2009)

potamiou said:


> The State Pension can also be paid weekly into a UK bank account, as can all your other pensions (albeit monthly rather than weekly). You can use your UK Debit cards to get cash out of any of the CY bank machines, and you will get the UK exchange rate, which is usually satisfactory. You will need to open an account with a Cypriot bank to pay direct debits (EAC, CYTA etc). We find this is much the easiest way of doing things. Also, so long as you no longer have financial commitments in the UK and all your UK-sourced money is spent here, you can pay CY Income Tax instead of UK (it is a LOT less!)
> Good Luck


Thanks Potamiou

Drawing it out of cash machines sounds handy, although I have this thing in that when we move over we want all our monies etc over in Cyprus - but not sure - will have to get guidence on that.

Thanks

Jim


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## jkelly (May 21, 2009)

BabsM said:


> Yes you can do it by using UK debit cards in ATMs here but you may pay a charge for withdrawing money abroad, possibly a charge for using an ATM other than your bank's and you will get the UK exchange rate which is usually lower than the ones in Cyprus (unless you are using a card from the Nationwide). We found this to be expensive which is why we got an International (Offshore) Account.
> 
> The situation as to who can pay tax here is down to the UK Inland Revenue (HMRC). You have to be living outside the UK for more than 183 days in any financial year and you cannot be 'normally resident' in the UK ie you must have severed the ties with the UK. If you own property in the UK, get earnings that derive from the UK or have any kind of interest in the UK, even if you are out of the country for the required time then HMRC may decide you are still normally resident in the UK. If this happens you may end up paying tax in BOTH countries.
> 
> The situation about domicile and residence has been complicated recently by UK police investigations as part of the MPs expense claim fiasco where some members of parliament and the House of Lords have been claiming they are resident abroad to evade taxes, and it looks as the rules will be operated more tightly from now on. If you retain property in the UK then you may still be considered as normally resident in the UK. To find out more have a look at the HMRC website ( HM Revenue & Customs: Residence and domicile issues) and the DirectGov website.


Hi Babs

We won't have any ties in the UK, everything will be in Cyprus, of corse unless someone enlightens us that that may be the wrong thing todo. 

WE intend to sell up lock stock and barrel ( never did understand that phrase)

Thanks

Jim


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## jkelly (May 21, 2009)

potamiou said:


> The State Pension can also be paid weekly into a UK bank account, as can all your other pensions (albeit monthly rather than weekly). You can use your UK Debit cards to get cash out of any of the CY bank machines, and you will get the UK exchange rate, which is usually satisfactory. You will need to open an account with a Cypriot bank to pay direct debits (EAC, CYTA etc). We find this is much the easiest way of doing things. Also, so long as you no longer have financial commitments in the UK and all your UK-sourced money is spent here, you can pay CY Income Tax instead of UK (it is a LOT less!)
> Good Luck


Hi Potamiou
Thanks for that, not sure which way to go yet, inclinedto get all our money over here, ned to get financial advice.

Thanks

Jim


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## Veronica (Apr 5, 2008)

jkelly said:


> Hi Potamiou
> Thanks for that, not sure which way to go yet, inclinedto get all our money over here, ned to get financial advice.
> 
> Thanks
> ...


Just be careful who you get financial advice from.
There is a certain firm in Paphos who advertise expat advice etc etc who will lead you up the garden path and try to sell you investments that are totlally wrong for you and will probably end up losing you some of your capital. 
It's a shame we can't name and shame on the forum because these crooks have cost us thousands. Charging for work on our taxes etc that they never even did and nearly dropping us in it with the Cyprus tax man. They also sold us investments which were completley wrong for us. When we asked specific questions aimed at making sure the investments were sutable for us they blatantly lied. Of course we should have checked the small print on the contracts but having asked the questions we were stupid enough to believe them and not check any further into it until it was too late because we had signed the contracts and they had our money.
OOOPPPS, sorry for the rant.
In short though, please be careful.

Veronica


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## potamiou (Jan 10, 2010)

That's why I said "......so long as you no longer have financial commitments in the UK!" We also find that the exchange rate we get using UK cards in the ATM here is favourable. The only way to get a really good rate is to use commercial brokers, who will only do it for larger sums. If you want your UK state pension paid into an "offshore" account, they will only do it quarterly.


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## BabsM (May 24, 2008)

potamiou said:


> That's why I said "......so long as you no longer have financial commitments in the UK!" We also find that the exchange rate we get using UK cards in the ATM here is favourable. The only way to get a really good rate is to use commercial brokers, who will only do it for larger sums. If you want your UK state pension paid into an "offshore" account, they will only do it quarterly.


I did notice that but wanted to reiterate the point about domicile/residence and keeping interests in the UK. I have heard of too many people recently who think HMRC and the Cyprus tax authorities won't find out if they lie about what they have kept. 

Interesting that you think you get a good rate using UK cards. Looking at the Ts&Cs of our cards and the exchange rates we have got when using them, it is better for us not to use our UK debit cards in ATMs. Just goes to prove all the banks are different


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## methusela (Apr 5, 2010)

*Nationwide transfers*



Geraldine said:


> Hi,
> 
> Is it true that Nationwide will transfer money to your Cyprus sterling account foc ? I'm afraid I too can't get my head around the transfering of money over.
> 
> Geraldine.


Hi Geraldine. Nationwide make a charge for transferring money from your UK account to any Cypriot bank account, the same as all other UK banks do. Their charges tend to be much more reasonable but certainly not zero.

I think you may be getting confused with the fact that if you have a Nationwide Flexaccount in the UK, you can use the debit card that comes with it to make withdrawals from cash machines in Cyprus and Nationwide don't make any charge for the use of a "foreign" (i.e. Cypriot) cash machine, nor do they add a foreign exchange conversion charge like many UK banks do.

On top of all that, the rate of exchange they use is that day's commercial exchange rate, which is a better rate than you will get most other ways.

This may be a very good way to transfer small amounts of sterling into euros but since the daily withdrawal limit is 300 pounds sterling you would have to make a lot of trips to the cash machine to buy something like a car.

Methusela


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## Geraldine (Jan 3, 2009)

Thanks for explaining that to me, I tend to get a blank glazed look when thinking about such things.!


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