Expats enjoy tax breaks in Cyprus
Justin Rix, international tax director at Grant Thornton, has said that many British retirees are relocating to Cyprus in order to take advantage of various tax benefits.
Mr. Rix has said in an interview to Telegraph that pensions from abroad may be taxed at the rate of 5% for amounts in excess of CYP 2, 000. So, if an expat pensioner has a low income of, say, €8,000, he is not liable to pay the five per cent, as they could pay no tax at all under the normal system.
Foreign investment income is charged at 5% on amounts over CYP2, 000 PA. The non-executive permits according to the Temporary Residence Employment (TRE) act, are given freely to senior employees of offshore operations and foreign nationals retiring to the island. He also added that the capital gains tax system in Cyprus is more favourable for investors than in the UK.
According to Gulf Weekly, Cyprus is firmly in the top slot for British retirees seeking a more attractive destination in retirement. The publication also added that the appealing features of Cyprus are sustainable that many foreign nationals are now choosing to live in Cyprus permanently in order to have the long term benefits.
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