UK State Pension

@mbohills57

Morning  I am sure that this procedure, which is common across Cyprus, is to prove who you are not so much that you are entitled.

You will also periodically receive requests for  a life "certificate", which is to prove that you are in fact "alive" because I would imagine that there may be a general history of pension being sent to people other than the entitled person and in resect of others who may have died.

I hope this helps.  In fact the system for Cyprus (occasional visit to the mukhtar's office) is rather less onerous than for some other places.

Enjoy a hopefully long and relaxing retirement :-)

The UK has wasted massive sacks full of cash so is skint.

The upshot is, if they can screw you, they will.

@mbohills57  don't worry, its standard practice for DWP to verify that pensioners living abroad are still alive! You can expect to get one of these letters every couple of years from now on. It doesn't need to be the mukhtar who signs it, most pharmacists will do it for you as well

It's normal and happens every year certainly for myself and SO to ensure you are who you are and that you are still alive... It's simple enough to do ...we just go to our chemist he signs and stamps and we return it via trackable registered post.. job done we just did ours just before Christmas.

All of this info is good to know as i get my pension this October 😊

@alisonrich1958.

Remember to apply for it as it doesn't come automatically.

@Toon, I already get it but just thought it strange after only one payment they sent me that even though I was based in Paphos when I applied.Thank you anyways

@Toon

Yes thanks Toon .

Just wondering if you leave the state pension in UK and as long as you don't exceed the personal allowance in UK are you then liable for tax in Cyprus?

Much depends on your own personal tax situation with regards to being tax resident in Cyprus

Okay, say you are tax resident in Cyprus, would you then need to pay any tax in cyprus if the UK pension is your only income?

I am just trying to work out if it is best to use up my UK allowances first?

I applied for my UK pension last year and never had to prove I am alive! Been getting it since last July into my UK bank account.

Opt to be taxed in Cyprus ...€19500 per annum each tax free

@phildraper

Might get one just prior to your pension anniversary ... We have them each year

I don't think you get the benefit of both allowances....you are either taxed there or here...

@mbohills57

Hi, I have two pensions from Germany I have to send confirmation I'm still alive every year. I have just received a request from HMRC to confirm I'm still alive with my address. My doctor signs for me.

Bazz

Just received my first life certificate form from the DWP, only started my Pension in Feb 23. i also got one recently for my Army Pension. my local pharmacist signed and stamped it for me free of charge.

Did you need to take any documents like passport with you ot does the pharmacist know you personally?

@phildraper,that is a good question as I very rarely go to pharmacy

Just passport or Cyprus driving licence

The return document requires identity information. Before stamping and signing the responsible officer would need to confirm your identity.

our replies crossed in the posting Toon 😁

@mbohills57

I'm sure your Missus would never do such a thing, but I have no doubt that mine would keep my dead body in a freezer in the basement for the next 20 years. :-) And that's why governments all over the world require regular proof of life from their expat pensioners (if not all their pensioners).

@Toon

hi Toon, about to apply for my state pension and just wondering if its better to have it paid into my uk account or cypriot account

thanks Ali

It's personal choice really but we prefer to have it paid into our UK bank account and accumulate till the exchange rate is to our liking .... It works for us . ...but that decision needs to be considered with your own personal circumstances and financial and tax positions..

We also opted to exercise our DTT rights back in 2014/15 so we declare all our income here in cyprus...but again it a depends on pensions sources and income streams sources as to how you go about it so as to legally  minimise tax liabilities

Hi

I believe that from Dec this year all UK gov paid pensions have to be taxed in the UK. As per the double taxation treaty amendment 2018. By then I will have State, Army and Gov ..☹️☹️

@sp0758

I think that applies to government employment pensions .... not state pensions

Ah.. thats good.. ill check..

Cheers

@graham6 complete a P85 on HMRC website then your pension will be paid gross. Your tax code will be NTX.

DWP will pay into bank in Cyprus and apparently the exchange rate is good.

@sp0758

.....why would that be a problem anyway?

Jim

Hi Jim

About £2,300pa in extra Uk tax on military and government pension, private pensions and state would be at 5% cyprus tax less allowance.

Is there no way to claim that extra tax back as a tax resident of Cyprus ... I thought there was or has that changed too ....maybe a chat with a tax professional is in order

Government service pensions

Under the latest UK/Cyprus double taxation treaty, which came into force in 2019, UK government service pensions are now taxable in the UK (unless you are a Cypriot national).  This brought Cyprus into line with most other countries.

This reform was implemented gradually so that you could elect to apply the terms of the old treaty and have your pension taxed in Cyprus – but this ends in 2024... 

Surely the Dual Taxation treaty between Cyprus and UK means that you can elect by submission of the DTT form to have it taxed in Cyprus under their tax regime.. or has that been annulled for government worker pensions

Maybe contact Blevins Franks about your tax position ... They are very good in my opinion as I have used them myself and got the best possible advice I could have ever had .

Hi

Thanks, I have and at present Government service pensions, from dec will be taxed in UK..

The rest and any other income remains taxed in Cyprus... unless of course things change by then.

I spoke to UK TAX office and he confirmed..

Regards

Steven

@sp0758..

so what happens to those gov worker pensions that have used the DTT in the past .. I assume they revert to being taxed in uk with just the standard UK tax allowances....

That could be a significant hit

Hi

Yes quite a big hit

Ive been told by HMRC, thats the case, but they were not sure if it is ( the case) !!!

At the moment I pay UK tax on all, ( all paid into UK Bank) as Cypus tax office have yet to confirm my application and issue cert for me to proceed..

Ill keep the site informed.

Good luck.

not sure if the gov pension is especially bigger than private but seems harsh to tax at source if you no longer live there.