¾ÅÉ«ÊÓƵ

Check for the the latest legislation in an earlier post as it's about to change.... It does regularly and over the next  three years is likely to change a few more times, and sometimes last minute and without warning

Visit regularly at  first and when Yiu move rent for a little while to assure yourselves of the right area for you to commit to.

Take recommendations from people you meet as regards developers if buying new or off plan

Never ever use the same lawyer as the person or entity selling to you. Check and double check everything then check again.

Best way forward is to ask here specific questions to get a more relevant answer/ response in matters that you are interested in or are concerned about..

Research research research then planning planning planning... And ensure you have an exit plan if Cyprus proves not to be what you thought.

Good luck

@Toon

Thank you for taking the time to reply, and I will definitely follow your advice. We've been visiting Cyprus twice a year now for a few years, scouting out different areas etc.

I'll make good use of the forum as I research the move to Cyprus and come up with specific questions.

Hello everyone and welcome @Andrewpro !

Please note that this new thread has been created from your posts on the Cyprus forum for better visibility.

All the best

Bhavna

Andrew,

Remember to get all your "life certificates" apostilled. It is expensive, but migration need apostilled certificates. It is cheaper to do this inthe UK than in Cyprus.

I used the UK government web site to get mine in 2023. Worked well. Watch out for the cowboys on the interweb!

Ask any questions here as there is a wealth of experience but keep in mind things change all the time so always check with a professional as they should be the most up to date!

I agree with Toon rent 1st. Seems like you are pouring money down the drain but it is less expensive than make the wrong purchase. Property purchase and sales are VERY slow here!  You might also consider spending your money in retirement rather than tying it up in property you will probably never realise :-/

Thanks, that is very helpful advice.

I agree about renting first - we want the house we buy to be our 'forever' house, so taking our time to find the right area/house is pretty important.

On the spending less on a house to have more disposable - it's always an option, and I'll be driven more by getting the house that is right for us, rather than getting the most we can for our budget. That said, one benefit to me of having decent capital in a house is an inheritance for my daughter.

Keep the tips coming though, I'm very grateful for the advice.

Check the inheritance tax situation. There is none in Cyprus but if you have a UK Will and a UK person is inheriting it might be chargeable. You don't want the UK government getting their hands on your hard earned money!

The only certain way to avoid UK IHT is to move all assets out of UK to Cyprus, then you will only need probate in Cyprus, so HMRC won't be involved

@andrewpro

Hi. I’m moving to Cyprus in May, so just going through the process. Here’s my experience so far.

A local lawyer can advise on the temporary residency process - note it’s worth shopping around as prices can vary dramatically. The lawyer will accompany you to the immigration meeting. The required documents are:

Valid passport with min 1 year validity

Bank account in Cyprus with 24k deposited - this can be moved as soon as you have the pink slip.

A clear ACRO record which must be apostilled

Blood tests & X rays (lawyer can arrange)

Health insurance (lawyer can arrange)

Bank/pension statements/ISA’s showing available balance & proof of income

Contract for property purchase or rental for min 12 months

Marriage certificate apostilled

Childrens’s birth certificates apostilled

Allow 3 months notice for your lawyer to set up the immigration meeting. I have mine arranged a week after I arrive. Once the pink slip is issued I’ve been told expect to wait at least 6 months for the biometric card to arrive. The temporary residency has to be renewed annually. Note temporary residency allows you to import 1 car and personal possessions duty & tax free (not alcohol).

If you buy a new property for at least 300k + VAT you qualify for fast track permanent residency. I’m told this can take up to a year from date of application, so you’d probably need temporary residency first. I understand that there is a minimum annual income requirement of 50k, based on tax returns, pension value etc. Although the residency is permanent the residency card must be renewed after 10 years. With permanent residency private medical insurance is not mandatory. It also allows more days outside of Cyprus to keep it valid (I think it’s max 180 v 90 for temporary).

Hope this helps.

@Graham Waller

Does anyone have any suggestions of Financial institutions in Cyprus that offer reasonable savings rates? All of the rates for banks appear very low.

Kevin

First questionm are you a permenent resident of Cyprus or are you still going through the hoops.

I'm still going through the hoops, I'm in the process of buying a property but waiting for it to be conpleted. I am in the process of registering with TFA. I have an Irish passport so I understand that the residency issue will be simpler.

@19kevin

Banks here dont pay decent interest rates...  Yet they still push savings accounts with zero interest .. why would you ..when there are better rates elsewhere.  UK Malta and other institutions all over europe

My friend Toon has already "stolen the thunder" -- for the purpose of residency papwerwork-- show the money and then move to Gurnsey (mine) or other good paying institutions in Europe. I may be one of the few old timers that do not have a local account in years but an EU account.

Are there off shore savings accounts paying better interest rates that the safe haven of NS&I circa 3.3% and 100% guaranteed no 85,000 limit?

Thanks all,

With the proposed changes to Inheritance Tax in 2027, I am proposing to limit any funds in the UK but it would appear that some options are available with protection.   

HSBC UK currently pay 4% on their online bonus saver account

Thanks all,
With the proposed changes to Inheritance Tax in 2027, I am proposing to limit any funds in the UK but it would appear that some options are available with protection. - @19kevin

Kevin,

What changes are planned in 2027?

Tia

@SimCityAT on pensions https://www.royallondon.com/guides-tool … s%2040%25.

@andrewpro
Hi. I’m moving to Cyprus in May, so just going through the process. Here’s my experience so far.
A local lawyer can advise on the temporary residency process - note it’s worth shopping around as prices can vary dramatically. The lawyer will accompany you to the immigration meeting. The required documents are:

Valid passport with min 1 year validity
Bank account in Cyprus with 24k deposited - this can be moved as soon as you have the pink slip.
A clear ACRO record which must be apostilled
Blood tests & X rays (lawyer can arrange)
Health insurance (lawyer can arrange)
Bank/pension statements/ISA’s showing available balance & proof of income
Contract for property purchase or rental for min 12 months
Marriage certificate apostilled
Childrens’s birth certificates apostilled

Allow 3 months notice for your lawyer to set up the immigration meeting. I have mine arranged a week after I arrive. Once the pink slip is issued I’ve been told expect to wait at least 6 months for the biometric card to arrive. The temporary residency has to be renewed annually. Note temporary residency allows you to import 1 car and personal possessions duty & tax free (not alcohol).

If you buy a new property for at least 300k + VAT you qualify for fast track permanent residency. I’m told this can take up to a year from date of application, so you’d probably need temporary residency first. I understand that there is a minimum annual income requirement of 50k, based on tax returns, pension value etc. Although the residency is permanent the residency card must be renewed after 10 years. With permanent residency private medical insurance is not mandatory. It also allows more days outside of Cyprus to keep it valid (I think it’s max 180 v 90 for temporary).

Hope this helps. - @rgray27

Thanks for the helpful info.

For the bank statement/pension/ISA proof of income aspect of the pink slip - is savings account with a certain amount deposited into it valid? As I won't have retired, but will have savings to live off until I can claim my pension, I was hoping that would work?

@andrewpro

They usually want to see a regular monthly income.

I didn't need blood tests or x-rays for my pink slip.

I put €10k in Hellenica bank.

@andrewpro

I showed my ISA and building society savings. I  am living off SIPPS until I get my pension. This was accepted.

April 2025  |  Ref 1193

The new UK tax year

What has changed, what hasn’t and what’s on the way

The 2025/26 UK tax year ticked over on 6 April 2025. Most thresholds and allowances remain frozen and most tax rates remain the same, with the capital gains tax increase imposed from 30 October 2024. The key reform this year is the abolishment of the domicile regime, which has been replaced by a long-term residence syste

Here we summarise this year’s tax rates and allowances, who is affected by the domicile reform and how, and look ahead to tax changes planned from April 2026 and 2027. The Chancellor’s Spring Statement 2025 included very little in terms of tax changes, so these reforms were introduced or confirmed by her Autumn Budget last year.

Income taxes

The income tax personal allowance and thresholds are frozen until April 2028, so the personal allowance remains £12,570. For higher earners, it is tapered by £1 for every £2 of income above £100,000, until it is reduced to nil.

The income tax thresholds and tax rates for non-savings non-dividend income are unchanged for England, Wales and Northern Ireland taxpayers:

Basic rate

Up to £37,700

20%

Higher rate

£37,701 – £125,140

40%

Additional rate

Over £125,140

45%

Scotland has different rates and tax income bands, and there the lower thresholds have increased a little this tax year.

Employer National Insurance contributions increased to 15% from 6 April this year, and the per-employee threshold (the secondary threshold) reduced to £5,000.

Tax rates and allowances for savings income and dividends remain unchanged for 2025/26.

Capital gains tax (CGT)

While there is only one capital gains tax related change this tax year, there have been notable tax increases over the last couple of years.

The main rates of capital gains tax increased from 10% to 18% and from 20% to 24% with effect from 30 October 2024. This applies to non-real estate assets (these rates already applied to property).

The CGT rate for personal representatives and trustees also rose to 24% at the end of October.

The capital gains tax annual exempt amount has been cut from £12,300 in 2022/23 to £3,000 from April 2024.

Where assets qualify for Business Asset Disposal Relief and Investors’ Relief, the CGT rate increased from 10% to 14% on 6 April this year and will be 18% from April 2026.

Pensions

There are no changes to the pension allowances this tax year. They remain:

Money purchase annual allowance minimum | £10,000

Annual allowance | £60,000

Lump sum allowance | £268,275

Lump sum and death benefit allowance | £1,073,100

Overseas transfer allowance |  £1,073,100

Overseas transfers were hit by a reform announced alongside the budget on 30 October 2024, when the exemption from the 25% Overseas Transfer Charge was removed from most EU/EEA transfers with immediate effect. This had a significant impact on expatriates wishing to move their pension funds out of the UK, though alternative solutions can be found in some cases. If this applies to you, please don’t hesitate to contact us to explore the options for achieving your objectives.

That said, the biggest change for pensions will take effect on 6 April 2027, when pension funds will start to form part of your estate for inheritance tax purposes.  For many people pensions are one of their biggest assets, so this reform will be felt by hundreds of thousands of families.  With another two years to go, there is time to look for strategic financial planning solutions. This particularly applies to expatriates, since if they meet the new long-term residence criteria, they will only be liable for IHT on assets within the UK.

Inheritance tax (IHT)

Inheritance tax rates (40% or 36% where 10% is left to charity) and allowances (£325,000 nil rate band and £175,000 residence nil rate band) are all unchanged. The 2024 budget extended the nil rate band freeze to 2030.

From 6 April 2026, the combined agricultural property relief and business property relief will be restricted to the first £1 million on qualifying assets. For anything over £1 million, relief will be 50% instead of 100%. Likewise, IHT relief on AIM shares will also be restricted to 50% from April 2026.

Domicile replaced by long-term residence

While this reform won’t affect most UK taxpayers, it is a major shift for foreign nationals living in the country (‘non-doms’) as well for British expatriates.

The infamous domicile system, which applied to inheritance tax liabilities for UK nationals living abroad, and income and capital gains tax for people moving to the UK, ended on 5 April 2025.

It has been replaced by a new long-term residence system, with 10 years being the key number.  Now –

All longer-term UK residents (resident for 10 out of the last 20 years) – including foreign nationals – pay tax on worldwide income and gains (previously non-doms only paid tax on a remittance basis). 

Anyone arriving in the UK, whether a UK or foreign national, who has been non-UK tax resident for the 10 previous years, benefits for a 100% relief on most overseas income and gains  for their first four tax years of residence.

British expatriates who have been tax resident outside the UK for at least 10 years are only subject to UK inheritance tax on assets located within the UK. This is more favourable than the much more adhesive domicile system, and is a call to action for expatriates to consider whether to dispose of UK assts.  In certain circumstances the 10 years of residence can be reduced to a shorter time frame.

The long-term residence regime also replaces domicile for trusts. Non-UK settled assets will only be excluded property at times where the settlor is not classified as a long-term resident. Separate rules apply for individuals that are already deceased.

Stamp duty land tax (SDLT)

The stamp duty nil rate band for residential purchases was cut from £250,000 to £125,000 with effect from 1 April 2025.

For those buying a second property, or any property that is not their main home, the SDLT rate has increased from 3% to 5%. This higher rate also applies to expatriates who own a main home in their country of residence and are buying a second home or investment property in the UK.

Personalised advice

If the domicile reform affects you, or you wish to improve your inheritance tax position or protect your wealth from future UK tax measures, please don’t hesitate to get in touch with our Paphos office. We’ll explain how the reforms could impact you and your family, and explore solutions to take full advantage of the many tax benefits of living in Cyprus and protect your wealth.

Nick Cairns

PARTNER

BLEVINS FRANKS

If you become a Cyprus tax resident can the HMRC still chase you for any unpaid taxes ?

If you kept a UK bank account could the HMRC stop you from accessing it ?

How easy is it to completely sever ties with the HMRC to get them out of your life ?

If you become a Cyprus tax resident can the HMRC still chase you for any unpaid taxes ? I don't think this will work lol Nice try. They will probably nab you when you arrive at the UK border
If you kept a UK bank account could the HMRC stop you from accessing it ? Under specific circumstances I bet they can as HMRC have the most powers
How easy is it to completely sever ties with the HMRC to get them out of your life ? Death is the only exit and then HMRC will still get hold of your hard earned money to contribute to the national debt :-/ The new 10 year rule might help as long as you have nothing in the UK

- @Gordon76

What's the difference between a taxman and a terrorist....

You can usually negotiate with a terrorist

If you become a Cyprus tax resident can the HMRC still chase you for any unpaid taxes ?
If you kept a UK bank account could the HMRC stop you from accessing it ?

How easy is it to completely sever ties with the HMRC to get them out of your life ? - @Gordon76

When I left the UK, I informed them and got a nice tax rebate from. That was when I moved to Jersey.

I lived in UK for a while and when I moved to Austria, I did the same and still got a tax rebate and that was when the UK was still in the EU.

What's the difference between a taxman and a terrorist....

You can usually negotiate with a terrorist - @Toon

how true lol

@Toon

Oh right, re: inheritance tax

Not really concerned, my dad has a good accountant

@andrewpro

I'm not really super familiar with the Cyprus rules, so hopefully @Toon and other local experts will clarify. However, my understanding is that there are complications in your specific situation.

I was under the impression that the Category F (with lower investment and income requirement) was pretty much backlogged by years. Instead, they're pushing the fast-track option with a higher investment (300k+VAT euros in a new property). However, even this investment option has a significant income requirement, which you perhaps don't meet.

I'd suggest having a consultation with an immigration attorney that specializes in this option.

Cyprus is lovely, but it's not your only option. I think the Golden Visa type option (residence by purchase of real estate) is a popular option in Europe, and probably still available in Greece, Spain and Malta as well as Cyprus. Additionally, Spain and its neighbour Portugal both have very popular residence options aimed mostly at retirees with much lower financial requirements, the NLV in Spain and the D7 in Portugal. The NLV, in particular, needs a measly 30k euros in savings to qualify.

@gwynj

Thanks for the info. I’ve also read about the backlog making the ‘fast track’ option unsuitable - at least until the upcoming refresh of it.

I thought I’d read somewhere on this forum that the pink slip option required a circa £20,000 deposit into a Cypriot bank account and proof that a similar amount has been spent from that account throughout the year. Basically so you can evidence you are spending money in Cyprus.

i can basically invest £400,000k in a house in Cyprus. My wife and I could then live off her pension £10k a year plus my savings £30k a year for 5 years until I’m allowed to draw my pension at 57. It just seems a shame that I have the means to live there, but can’t evidence a pension yet.

Thanks also for the suggestions of other countries. Our preference is definitely Cyprus but it sounds like we may have to keep our options open.

Im actually writing this post while sat in Protaras - here for a week exploring a few different parts like Kapparis.

I suggest you speak to an immigration specialist who can miraculously make certain perceived barriers disappear.. 

Where there's a will there is a way

Good luck ..Dont give up.

@Toon  Thank you, we will. keep the dream alive and seek some specialist advice.

@andrewpro

By using a good immigration specialist much of the anxiety frustration and stress is removed...not cheap but worth it in my opinion .. especially now that there are more criteria to meet.  And likely to change again as it often does.