Expats and Bailout

[trev1947]

Will the Cypriot bailout from the EU have any effect on the Expat community, particularly for the retired people living on a UK pension. If so, what effect will there be?

[Veronica]

Originally Posted by trev1947

Will the Cypriot bailout from the EU have any effect on the Expat community, particularly for the retired people living on a UK pension. If so, what effect will there be?

The only way it is likely to affect us would be if taxes were put up or the exemption from taxes limit was reduced so that expats who presently don't pay tax on their pensions had to start paying them.
No one knows though what austerity measures, if any, will be levied so it is too early to start speculating IMO.

[trev1947]

Originally Posted by Veronica

The only way it is likely to affect us would be if taxes were put up or the exemption from taxes limit was reduced so that expats who presently don't pay tax on their pensions had to start paying them.
No one knows though what austerity measures, if any, will be levied so it is too early to start speculating IMO.

Thanks for your response, but if you obtain your pension by way of an ATM, local tax rates, surely do not apply.
You could of course get a poor exchange rate, but I can not see local tax rates having any effect on a UK pension.

[Veronica]

If you have chosen to pay tax on your pension in the Uk then you would not be affected. Most pensioners choose to pay tax here as it is much less than the UK and no matter what method you use to bring your pension over if you have chosen to pay tax here you have to fill out a tax return each year and you will be taxed according to which method of taxation you have chosen.

See this link
Government Pensions

[PeteandSylv]

Originally Posted by trev1947

Will the Cypriot bailout from the EU have any effect on the Expat community, particularly for the retired people living on a UK pension. If so, what effect will there be?

There is a general rule of thumb that whatever measures politicians take to improve matters, you will be worse off.

One small ray of hope is that President Christofias will be spending the next 6 months filling in expense forms in Brussels giving him less opportunity to create havoc and damage Cyprus further.



Pete