Property questions: What tax benefits does becoming a Cypriot offer?

In a previous article in the Sunday Mail (Brexit losses and benefits) you wrote:

“We note that a number of British nationals (including those of Cypriot origin) are applying for a Cypriot passport in order to bypass the restrictions that the British might have regarding (in our opinion) the acquisition of real estate, the Cyprus capital gains tax situation, the inheritance tax and other income taxes”.

Can you explain how being a British national and having a Cypriot passport it bypasses restrictions British might have regarding the acquisition of real estate, the Cyprus capital gains tax situation, the inheritance tax and other income taxes?

Kind Regards,
Panayotis

 

If you are a Cypriot there are no restrictions on real estate ownership etc. If not and a non EU member, you can buy only one house, no right (buy to let) and maximum land extent 4,000m².

Once you become a Cypriot national, you will be treated as all the others (Cypriots). Regarding estate duty, in this case if you are a British national, the situation might get a bit more complicated, since the question of domicile rests on the British Government should it consider that you are domicile in the UK, it will not let go its inheritance and other taxes which British pay unless you can prove otherwise.

I suggest that you contact you accountant on the subject, so that no surprises are met at some future day and prepare your tax plan accordingly.

Regards,
AP Loizou

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