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Newcomers

Hi, I’ve been reading various questions and responses you’ve given for people in similar situations to ours, but have become rather confused. Could you please give me a little clarity , specific to our situation, or advise who it would be best to speak with?
We are a British national couple who currently live in France and were originally planning on moving to Cyprus sometime in the next few years to make it our tax residence for a year or so.
We have adequate annual income from a private pension, so don’t need to work but would like to be able to choose to do some work if it interests us. Our plan is to rent a place for the 12 months and only buy property if we decide to stay for the longer term.
Because of the Brexit situation, we are coming for a visit to check out likely areas to live soon, just in case we have to make our move before 29th March 2019 to ensure we beat the non-agreement deadline, which looks ever more likely.
Can you please confirm any of the following?:
- how do we demonstrate the date we began our residency...for example, if we arrive on the 28th March? Is it the day we arrive, or the day we make our application?
- Assuming we get in before the deadline, Is it the MU1 we would apply for? Is this also called the yellow slip? Is it different to the alien registration document, and, if so, do we need both?
- how we would declare our tax residency? (To demonstrate to the french tax authorities that we have left their system)
- are their any companies you may recommend who could help us with the process, bearing in mind it is likely to happen in quite a rush!
Many thanks in anticipation of your advice.

Toon

you will be deemed resident once you have your MEU1, Alien Registration Certificate commonly known as the yellow slip  - the MEU3 is the Permanent Residency certificate once you have 5 yrs legitimate residency in - the MEU1 is obligatory and a legal requirement after 90 days here.... they may mitigate it if you have made your appointment in plenty of time - note that appointments are being allocated now for January / February - the High Commission and the Cyprus government are suggesting / recommending to get your official residency before the 29th march 2019 - i would suggest you keep copies of your entry flights, car hire, initial hotel bookings or rental contracts bank statements any utility bills incurred here atm cash withdrawal slip  etc in fact anything that can prove you are living here all of the time - as that would be a good start

Citizenship here can be obtained after 7 yrs legitimate residency - it is our plan to get PR next sept and then 2 yrs later to apply for Cyprus citizenship, -

check your driving licence validity too

Currently Cyprus government have only got plans for a deal brexit - - -but  absolutely no plans (certainly havent published any) as yet for a no deal brexit so anything can happen in that scenario

it is also a legal requirement that you register for tax here too whether you pay tax or not - so thats a trip to the tax office in cyprus (the office will depend on your chosen location) where they will on completion of registration allocate you a Tax Identification Number (TIN) - as British nationals you can elect to invoke the dual taxation treaty cyprus has with the UK (€80 each) so you only get taxed once in cyprus  =- declaring all income and taking advantage of the €19500 each annual tax free allowances here)

i dont recommend any companies to do this as its easy to do it yourself  - honestly it is easy

there is a good tax advisor here called Elizabeth Welsh in Paphos  - there are others too - we used her initially and now we do our own tax returns online each year.... its now all done online from this year....its done behind though so tax yr 2018 return is to be completed between April and June 2019....when the input forms are published on the Taxisnet web site.

Newcomers

That’s really useful, thank you Toon.
Unfortunately, as you mentioned they are already taking appointment now for jan/feb, I can’t see us getting an appointment until after the end March, as we won’t be living there until mid-February at earliest.
It is one reason I wondered if we would be able to fast track to the appointment by using an agent. It all feels rather risky at the moment. Ideally, we would stay in France another 12 months or so, but we feel like we are having to make our move more quickly in the event of no deal, just To avoid being left in limbo!
I suppose, if we miss the deadline, we will just have to apply for an alien registration card for non-Europeans. Is that the one I’ve seen you discussing as  Category F” ?
Can you tell  me please, does this form of temporary residence require someone to buy property, or just to prove they can support themselves, if they are renting?

Toon

Non EU applicants can fast track in three ways but as with EU they involve interviews etc you need to be here and its quite clear to me there are more hoops to jump thru as a TCN... as ive witnessed this in Malta its more red tape for TCNs..and that is what UK nationals will be in the event of brexit - however nobody here knows what will be the plan for Cyprus resident brits in the event of a no deal crash and burn exit. Cyprus havent published any detail of a no deal plan just one  that involves a transition

Am sure there are agents who can help ata considerable cost but i seriously doubt if anyone would do so without you being here.


fast track 1 buying property for upto  €150k and have €30k each in  bank accounts held here

fast track 2 buying property for €300k

fast track 3 for the wealthy  buy a property for€2m and get a eu passport too


whichever way you are not allowed to work... am sure some people do though albeit under the radar....for cash

Q will your life in France be that heavily affected? Can you not continue as you are?

I think it if it was me in this position i would wait until such time as things are clearer.. just my opinion though .... maybe we will have some clarity over the next few weeks....

Newcomers

Thanks Toon,
Yes, I agree it is worth us waiting to see what happens in the next couple of  months.
It isn’t that our life in France is in any way an issue, of course, we could stay here, it is just that we had always had the idea that we would like to experience living in Cyprus at some point in the next few years, (and maybe elsewhere later) and are feeling we may have to move faster than planned if we’d like that dream to come true.

Toon

i understand as I too despite living in Cyprus for 4 yrs was in Malta for 6 yrs and had kinda planned or would like to try Crete at some stage but loss of FoM may  stop that from happening easily

Toon

so our plan is now PR next yr (with 5yrs in) and then 2 yrs later apply for Cyprus citizenship and get our FoM rights back with a cyprus passport.....

ReemCyprus

We went to Larnaca for a short break in late October and though we're only moving in January - i took advantage of being there to make an appointment for end of January, although the woman was reluctant to make an appointment for any time later than 15 January, so I think you're fine in terms of getting an appointment.
We do not however yet know where we'll be living and the registration process requires a rental agreement signed at the tax office, so I'm likely to have to push our appointment back a couple of weeks.

Toon

i do sometimes wonder about that = as you could be staying with family or friends until such time as you find a house.....

dproror

ReemCyprus wrote:

We went to Larnaca for a short break in late October and though we're only moving in January - i took advantage of being there to make an appointment for end of January, although the woman was reluctant to make an appointment for any time later than 15 January, so I think you're fine in terms of getting an appointment.
We do not however yet know where we'll be living and the registration process requires a rental agreement signed at the tax office, so I'm likely to have to push our appointment back a couple of weeks.


Does anybody know what the current waiting times for appointments at the Larnaca immigration office are?

ABRUZZE ME

Hope somebody will give a reply to dproror, as it interest me as well!

Toon

I cant give you an idea of Larnaca but I do know that the waiting time for appointments in Paphos is about 2 months

ABRUZZE ME

thanks Toon,
you're an exellent referent..

May I ask you  two more  important questions (at least for me) about taxation in Cyprus?
  I consulted more then one  site specializing in taxes, but  I can't find any thing about the possibility of choosing to pay  a flat tax of 5% ( as I read somewhere) of my pension that I would receive once  transfered my fiscal residence to Cyprus ?

Would my wife which perceives  less than€19,500/year  pay nothing or her pension will be summed up to mine, so that we'll pay on the total family income?
Thanks and wish you and all on this Forum the best wishes for a Merry Christmas.
Emilio

Toon

you are taxed individually so your wifes taxation will be zero rated as she will be earning less than €19500....

you can opt for the 5% tax rate in foreign pensions if its better for you - see this link - -https://www.pwc.com.cy/en/publications/assets/tax-facts-figures/tax-facts-figures-2018-english.pdf

ABRUZZE ME

Thanks for your valuable info..
I might be wrong (hopfully), but when the talk about "foreign pension".....

Foreign pension income is taxed at the flat rate of 5% on amounts over
€3.420. The taxpayer can however on an annual basis elect to be taxed at
the normal tax rates and bands set out above.

Will they let you choose to select the free taxation up to € 19.500 ?

regards
Emilio

Toon

yes the choice is yours to choose the best option for you

ABRUZZE ME

Thank again.
Emilio

GuestPoster632589

We are looking at relocating to Crete...
a small coastal village called Sisi....love Crete

GuestPoster632589

One thing that does confuse me in this is do I need an ARC and MEU1? I can book the appointment though I suspect it'll take a short while.

I intend to keep working for a UK company but be a Cypriot tax resident with a min of 183 days a year for the 1st year at least and then move fully once we've made 100% sure it's definitely for us as it's a lot to move 3 cats as well as everything else (like a car)

Toon

The MEU1 form is the application for the ARC... they are essentially one and the same
There is currently 6-10 weeks waiting list for appointments.

It is a very good idea to do the long visit first to see if it suits you and your lifestyle... rent first and try a few areas do the exploring to research the areas that may interest you not many get their choice right the first time round.... we have in 5 yrs here moved 3 times (for various reasons.. none were to do with LandLord issues more to do with  location and dynamics)  and are in our 4th house which is perfect for us.. so take your time dont rush anything
we moved from malta to cyprus with one cat so i know what its like to move one..... but we now have him and 7 outdoor ferals.....

good luck

GuestPoster632589

Thank you, that makes a lot more sense now. I guess doing it within 8 days is a little hard then (that's Cyrpus  :top: )

Do I recall you saying you had directions to the Paphos immigration office? If so can I pm you to get them?

Thanks

Toon

For sure

Toon

Location of Alien & Immigration Office paphos

Toon

just click on the link in blue above and you well get the map to it  - cant give you directions as wont know where you are coming from lol

GuestPoster632589

I was quite fortunate in terms of wait times and have my appointment on the 27th. That is despite her being sick for 2 days and the hand written note on reception just saying they were "closed today" Also found immigration insurance for €150 so it's the cheapest I've seen

Toon

it is very limited but to get you over the yellow slip line its worth it

GuestPoster632589

It's frustrating but as I'll still be working for a UK company and paid in the UK they treat me as Cat F - even though I'm not strictly so and the Social Insurance office was a painful joke. I have a picture of her to remind we the face of sheer incompetence

Toon

I believe technically if working here (even remotely via pc) then you should be taxed here unless of course its a government job..

but yes it can feel very frustrating

Toon

LATEST - - My apologies if the following is not applicable to you.

British Citizens Preparing for Brexit

I spent an informative couple of hours on Wednesday with The British High Commissioner, Stephen Lillie CMG, his team and several other guests at his residence in Nicosia.

The main subject of the meeting was preparing for Brexit. As you are probably aware, the situation with Brexit is unclear at the moment. However, Stephen Lillie provided advice on what actions British citizens who are resident in the Republic should take prior to B-Day (Brexit day - Currently 29th March):

Residency

The minimum requirement is to have a Registration Certificate (MEU1), which should ensure your rights are protected after B-Day. If you do not have a MEU1 make an appointment with the Aliens & Immigration Unit; the Limassol unit is located at 223, Franklin Roosevelt. Providing you book your appointment before B-Day, your application will be honoured even though your interview may not be scheduled for several weeks.

Those unable to attend the Unit may appoint their partner, a friend, etc. to act on their behalf. A formal Power of Attorney is not required – a simple letter of appointment will suffice.

Further information about applying for a Registration Certificate (MEU1) and the application form may be found on the Civil Registry and Migration Department's website.

If you have a MEU1 or MEU3, take this with you if you leave the Republic even if it's just for a day. On your return present it at passport control to avoid any issues entering the Republic.

Taxation

All residents of the Republic are required to register with the Tax Department and complete an annual tax return even though their income falls below the Income Tax threshold. You can find the registration form on the Tax Department's website.

Healthcare

The UK and the Republic wish to negotiate a reciprocal health agreement. However, the Republic needs the authorisation of the EU to enter into a bilateral agreement and is waiting their response.

The Cyprus National Healthcare System (GESY) is scheduled to start in June 2019. As this is an initiative of the Republic, the High Commissioner could not provide any guidance. However, he did advise British citizens make themselves aware of the system and decide whether to register as a beneficiary.

Further information on the Cyprus National Healthcare System may be found on the GESY website. (Section in English available.)

Details of beneficiary financial contributions and the GESY implementation phases may be found in this Cyprus Mail article.

Cyprus Medical Cards – It has been reported that a number of British Citizens in receipt of the UK state retirement pension have been refused a Cyprus Medical Card. Anyone affected should report the problem to the Vice Consul, Christina Smith, at ukincyprus@fco.gov.uk .

Driving Licence

It is essential that British residents with UK driving licences exchange them for a Cypriot driving licence. Information and forms necessary to apply for a Cyprus driving licence may be found on the Cyprus Driving Licence website.

(Note that post-Brexit a Cypriot driving licence will remain valid in the UK.)

Dual Citizenship

A number of British citizens have applied or are considering applying for Cypriot citizenship. British and other foreign nationals can apply for Cypriot citizenship if they have completed seven years of legal residence in the Republic prior to the date of their application. Further details of may be found on the Civil Registry and Migration Department website.

Although there are some benefits of becoming a dual national, there are also some potential drawbacks:

British citizens become dual nationals, the British High Commission is unable to provide them with consular assistance.

We were advised by one of the other guests that a British Citizen who has been granted Cypriot Citizenship (a dual national) will be liable to pay income tax to HMRC.

British citizens who are considering applying for Cypriot citizenship should take professional advice on how this may affect their finances and other matters.

Regards

Nigel Howarth

GuestPoster632589

Tax yes but social insurance is deducted at source and that's an EU wide arrangement so I will never qualify under the SI requirements. Now tax is a different matter entirely and don't I need the yellow slip ID before they'll give me a tax number?

Toon

Ah ok thanks for that update...

i think you should be able to get a tax number with  the appointment in place, but as its only a couple of weeks away probably just as easy to wait

Toon

LATEST UPDATE FROM UK HMGOV
https://www.gov.uk/guidance/living-in-c … =immediate

GuestPoster632589

Well the saga continues.....

I got new information and part of this was to get the Mukhtar to stamp the contract with a 2 Euro stamp. Nobody seems to know where this mythical creature is based and there is much debate on the forums and social media groups as to who or what to go to.

I went to the citizen service centre who gave me a telephone number but couldn't tell me their exact location just it was by Zorbas bakery.

If anyone else needs this turn right out of the CSC and left after Zorbas. He is at the end of that street (cul-de-sac) and there is a small sign in the top right of his decking frame. Nice guy though charged 5 euro for a 2 euro stamp!

GuestPoster632589

Oh yes and be mindful of protocol (we did but just in case) His seat is at the head of the table as the senior person

Toon

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