QROPS Cyprus

British expats could take their pension plans and enjoy a fantastic quality of life in by retiring in Cyprus.

Like Spain and France, Cyprus is proving a popular destination for Britons retiring overseas, not just because of its weather, low cost of living and membership of the European Union but because it has made its tax structure particularly generous to pensioners.

Each individual pensioner can choose whether to pay a flat rate of five per cent income tax on their worldwide income in excess of a small personal allowance, or to be allowed a larger allowance or tax-free band and then pay tiered rates of tax up to 30 per cent on income in excess of the threshold. There is no Inheritance Tax nor any Wealth Tax in Cyprus.

Under the terms of the UK/Cyprus Double Tax Treaty, all forms of British pension – including Government pensions such as the civil service and local authority schemes –can be paid without deduction of British tax to pensioners who are tax-resident in Cyprus.

Ian Dowie

http://www.telegraph.co.uk/finance/personalfinance/offshorefinance/7189590/QROPS-and-pensions-Cyprus.html