double taxation for Dutch retirees in Cyprus

8POSTS

5 years ago

I am retired and resident in Cyprus as september 2020. I have a pension (ABP) and social security (AOW). I have to pay tax in The Netherlands and, as I understand it, also in Cyprus, because The Netherlands has no tax treaty with Cyprus. Is this correct? Is there anybody who can help me in this respect? Thanks.

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Cynic UK/Netherlands Expert

8115POSTS

5 years ago

Hi and welcome to the Forum.

The Netherlands and Cyprus had agreed the texts of a tax treaty just before Covid; it was due to come into force on 1 Jan 2021; I can't find any record of what happened to it after that.

My advice is to go and find a Cypriot tax advisor and see what he/she can find out.

Hope this helps.

Cynic
Expat Team

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Karl Harmsen New member

8POSTS

5 years ago

Thanks a lot.
I will contact the Dutch Tax service: they should know what happened to the draft text, if anything.
Regards, Karl

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shotokan101 Serial expat

315POSTS

5 years ago

Looks like it was signed but didn't specifically mention/cover pensions....

Jim

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Cynic UK/Netherlands Expert

8115POSTS

5 years ago

shotokan101 wrote:
Looks like it was signed but didn't specifically mention/cover pensions....

Jim

Yeah - I saw that as well, but it doesn't provide any additional information so we can go and read it our self.听 The EU maintains a register of all the tax/social treaties its member countries have enabled, it's not on there, which is strange and makes me think it maybe stuck between agreement and publication.

Perhaps somebody living in Cyprus who know a tax adviser could find out for us.

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Toon Cyprus Expert

10236POSTS

5 years ago

Try Blevins Frank鈥檚 in paphos

2 members reacted to this post

Karl Harmsen New member

8POSTS

5 years ago

Thanks, Toon.
I had seen their website and I downloaded their brochure. Did n't know they have an office in Paphos.
Karl

Toon Cyprus Expert

10236POSTS

5 years ago

yes they do and its not far from Paphos Lidls on the way to the general hospital between that major crossroads on the mesogi road and the big water fountain - - opposite side of the road to Michaels Automotives next to the MRI centre

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Toon Cyprus Expert

10236POSTS

5 years ago

If you do make contact ask for Nick Cairns he was great for us

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shotokan101 Serial expat

315POSTS

5 years ago

#10

Toon wrote:
If you do make contact ask for Nick Cairns he was great for us

Reasonably priced Toon?

Toon Cyprus Expert

10236POSTS

5 years ago

#11

I think You can get a free consultation... we did and it proved to be the best advice we could ever have got

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Karl Harmsen New member

8POSTS

5 years ago

#12

Thanks a lot

Beanie Active member

49POSTS

4 years ago

#13

Karl the-point of a DTT is that You don鈥檛 pay tax twice,.听 I have danish pensions taxed on source so no Cyorus tax,

Karl Harmsen New member

8POSTS

4 years ago

#14

thanks

shotokan101 Serial expat

315POSTS

4 years ago

#15

Whilst your point is correct surely it's only part of the benefits?

Doesn't it also normally allow you to choose which country you have your income taxed under?

This can be a substantial benefit to pensioners - for example - due to the low tax on pension income under Cyprus tax laws...

Jim

Toon Cyprus Expert

10236POSTS

4 years ago

#16

Some Jim ..eg some UK gov pensions are outside of the dtt agreement and must be taxed in UK .. but the taxes paid can be offset against taxes paid in your resident country.... Further if you physically do any听 work here even remote working then you must be taxed here

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Cynic UK/Netherlands Expert

8115POSTS

4 years ago

#17

Hi all.

The Dutch Government website has a page that deals with this specific matter; this will take you straight to it.

Hope this helps.

Cynic
Expat Team

shotokan101 Serial expat

315POSTS

4 years ago

#18

@Toon听

Thanks Toon - I was aware of the gov.uk Pensions "restrictions" but hadn't considered that similar clauses might be included in other countries taxation agreements听

Jim

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