Look North for Cyprus bargain

Reunification talk gets investors buzzing about the North of the Island

Significant development has been going on in the north of the island, which was unofficially divided from the south in 1974, and some are saying that the north, with its cheaper property prices, could become something of a hotspot.

Reunification

The reunification of both parts of the island has been talked about for a long time, but concerns over property have so far prevented this from happening. Greek Cypriots who fled to the south may return to the north and claim their old land back if the reunification was to occur.

Property prices in the northern part of the country are far cheaper than in the south, and you may even spot a celebrity or two; boxer Joe Calzaghe has just snapped up a property there, reported The Times last week. 

  Lowest tax on pensions

Cyprus also has the lowest tax on pension income that anywhere else in the world.

Foreign pensions have a very favourable tax status in Cyprus and the maximum tax will only ever be 5% according to ProACT Partnership Expats, advisors in tax efficiency.

 Managing Director Sam Orgill says, "If you are looking to retire abroad then consider carefully the tax implications which can have a dramatic effect on pension income and savings.

Pension income is generally treated as earned income in the country of origin and only by concession can you pay a lower rate by living as an expat abroad.

These concessions are determined by double taxation treaties. Cyprus has many good ones allowing expatriates to pay the lower Cyprus tax rates on their world wide pension income.

Mr. Orgill added, "If you receive income from savings or investment you can pay no tax as a Cyprus resident. Review what tax at source you are paying on savings and investments and consider how you could hold these same investments without paying tax."

In a world of rising tax rates the combination of increased allowance and lower exchange rates means that many people are taken out of tax altogether this year. UK pats will be able to receive up to £15,000 GBP before they start paying Cyprus tax.

Having lowered your tax liabilities you need also to look at increasing your pension income.

Contact: ProACT Partnership, www.proactpartnership.com.

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