Cyprus anyone!?

Elevenses

After a few holidays in Cyprus, I have decided I want to relocate within two to three years (Well tomorrow actually...but there's the Wife...)

Tax threshold £19500, then incremental amounts similar to the UK

They mostly speak English (similar to UK then LOL)

Drive on the Left!

PENSIONS TAXED AT 5% AFTER THE FIRST £3700 (ish) meaning a £22kpa pension attracts under £900 tax...

UK heating allowance still applies!!

Free healthcare for pensioners...


Looking good!?

Well you know that £200k UK property you have, which would rent for £700 per month? Well you can rent a Three bedroom Villa with pool for £450 in Cyprus. (Taxable income zero in UK, as under £10k allowance)


I understand the possible pitfalls, but by keeping a UK property, you're not burning any bridges. Am I missing anything? :cool:

Cyberman60

Just keep your money out of those dodgy cypriot banks. I wouldn't want to mix with Turkish muslims either as some can be extreme, but good luck.

antrobus

Elevenses wrote: »

....PENSIONS TAXED AT 5% AFTER THE FIRST £3700 (ish) meaning a £22kpa pension attracts under £900 tax...

You will still probably pay UK tax on your pension.

Elevenses wrote: »

....
UK heating allowance still applies!!

Not after 2015.

Elevenses wrote: »

....
Am I missing anything? :cool:

Yes.

Elevenses

If you live in Cyprus (South) you will not pay UK tax on your pension.

The UK has a deal with Cyprus, and vice versa, as long as you have residency (easy, as it's Europe)

You WILL pay tax on UK property rental, over your UK threshold.

this is all 'At the moment' so currently accurate

chucknorris

Elevenses wrote: »

Am I missing anything? :cool:

I think that dividend income and savings interest might be tax free in Cyprus, although I wouldn't want to put that much in a local bank if I lived there.

Mands

Elevenses wrote: »

Free healthcare for pensioners...

It isn't free any longer but the charges are relatively low: sub 5€ for a GP, more for a specialist, 50¢ per blood test or prescription item.

You may want to think about whether you might want to supplement the state system with pay-as-you-go private care on occasion. Generally it's possible to switch between the two at will which can avoid some of the queuing issues or other dramas.

If you routinely take prescription meds it would make sense to research beforehand whether they are available. Many, but not all, are. If they are available, but not prescribed by state doctors, then you'll want to know out of pocket prices or discuss alternatives with your UK GP first.

Happy planning,
Mands

Cyberman60

Be careful !! They have already made one money grab a couple of years ago and they are not out of the woods.

http://www.forbes.com/sites/timworstall/2013/04/12/cyprus-might-be-going-bust-again-already/

ttoli

Go for it but do keep a base in the UK , 22 degrees here today

Mands

ttoli wrote: »

22 degrees here today

It's been indecently lovely this week, hasn't it? It's starting to get nippy once the sun is down though.

Mands

margaretclare

Learn to speak and read Greek!

I lived in Limassol for 2 years in the 1960s.

Tax_Slave

Elevenses wrote: »

Well you know that £200k UK property you have, which would rent for £700 per month? Well you can rent a Three bedroom Villa with pool for £450 in Cyprus. (Taxable income zero in UK, as under £10k allowance)

That 10K tax allowance will be going away for ex-pats soon.