Cyprus-Forum.com

[MickKnipfler]

Can somebody tell me....

Is there no Inheritance Tax in Cyprus? I heard that if you sell a property that you have to pay CTG but is there anything to pay on death and passing the estate on? Also, what is the situation if you have a large estate back in the UK but are tax domiciled in Cyprus?

[Niki]

I read that you have to sever all ties with the UK and become a Cypriot Citizen with no accounts, houses or anything in the UK to qualify for no inheritance tax.

[Svetlana]

There is no Inheritence Tax in Cyprus, but - I assume you are from the UK - you will have to prove to the British Revenue, that you are not still domiciled there. Even being a permaent resident of Cyprus does not mean you are domiciled here.

Yes, there is CGT at 20% on the sale of Immoveable Property.

Lana

[MickKnipfler]

Thanks. I'm only considering my retirement options at present but IHT management is a serious concern.

What criteria do you need to meet to prove you're domiciled in Cyprus?

[EPSILON]

Thanks. I'm only considering my retirement options at present but IHT management is a serious concern.

What criteria do you need to meet to prove you're domiciled in Cyprus?

To be British is fair enough- no other requirement

[Svetlana]

The UK Government do not publicise any criteria; you would be best contacting to ask what the guidelines are. Certainly if you retain a property in the UK or perhaps have significant savings accounts there they will claim your domicile remains in the UK.

Lana

[MickKnipfler]

OK so I would have to sell any UK property. What if my pension was paid from the UK? I don't know if there's much you can do about that?

[twinkle]

I believe that property owned abroard >75,000Sterling is subject to IHT in the UK if you seeking probate in the UK. Also any gifts of >1,000Sterling made in the 7 years prior to your death are included in your estate. IHT is 40% on amounts >280,000Sterling. Extortion!

[twinkle]

If you own nothing in the UK, have no accounts or savings, no shares or intrests and are merely receiving your pension from there, they can't tax you on property owned in Cyprus or monies held here. Surely you would be subject to the tax laws of the country in which the "estate" is based. Your beneficiaries would have to pay the transfer and CGT on the property here upon your death.

[Svetlana]

I agree with Twinkle's view; the mere existence of a Pension from the UK would not suggest you were domiciled there.

lana