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HM Accountax Ltd
HM Accountax Ltd, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 346
Experience:  I am an accountancy professional with more than10 years hand on experience in audit, accountancy and tax affairs.
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I have a question about double tax between Cyprus and the

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Hi there, I have a question about double tax between Cyprus and the UK
JA: Where are you? It matters because laws vary by location.
Customer: The UK
JA: What steps have you taken so far?
Customer: None
JA: Anything else you want the Lawyer to know before I connect you?
Customer: No thanks
Customer: replied 14 days ago.
I currently live and work in the UK (my employer is a UK based company) and I pay taxes in the UK. I would like to find out exactly for how long I can work remotely from Cyprus whilst avoiding double tax. I know there is the 183 days rule per fiscal year. I would like to find out when this year starts? Is it 1st of Jan or April or some other day? Is there anything else I should consider to make this work? Here is the relevant tax agreement between Cyprus and the UK: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/875089/Cyprus_UK_2018_protocol_in_force.pdf.

Hi,

I am an advisor at JA and happy to assist you.

The financial year starts on 06.04.xx - 05.04.xx - The 183 days period is during one financial year.

You need to check with accountant in Cyprus to see how their residence system works.

I hope this answers your query.

If you have any further queries then please feel free to contact me.

Regards

HMAT

Customer: replied 14 days ago.
Hi,Thank you for your answer.Could you clarify what you mean about the residence system in Cyprus. Why would this be relevant in this case?Thanks,
Stephania

Hi Stephania,

Thanks for your prompt reply.

If you are living in Cyprus for 6 months then you might become Cyprus resident and subject to Cyprus taxes so make sure you check with Cyprus accountant as well.

Regards

HMAT

Customer: replied 14 days ago.
Hi,Thank you for your answer. Why would I need to check with an Accountant in Cyprus. Isn't the 183 days an agreement between Cyprus and the UK? Therefore if I make sure not to stay for more than 183 days in Cyprus in each fiscal year then why would I be considered a resident in Cyprus? Or is there some distinction I am missing here? Or is it just as a precaution?Thanks for your help,
Stephania

Hi,

The 183 days rule is for UK residence. It have nothing to do with double taxation relief or taxation with Cyprus.

I want you to check from Cyprus side to confirm how many days you need to be in Cyprus to become Cyprus resident.

I hope it answers the query.

Regards

HMAT

Customer: replied 14 days ago.
Hi,Thank you that does somewhat clarify.The 183 days rule is mentioned in the UK/Cyprus double taxation convention Article 14 - Income from employment (found in the gov.uk website and link provided above). Could you please let me know what this is about. It would be great to understand.Based on your answer I should only worry about double tax if I am considered a resident in Cyprus (hence why I should find out what the local rules are on tax there). No other considerations other than that, would that be correct?Thanks for your help.
Stephania

The 183 days rule is mentioned in the UK/Cyprus double taxation convention Article 14 - Income from employment (found in the gov.uk website and link provided above). Could you please let me know what this is about. It would be great to understand. - If you are present in UK for 183 days, you'll be UK resident. UK residence status is applicable to anyone living and working in UK and goes abroad around the world not just Cyprus.

Based on your answer I should only worry about double tax if I am considered a resident in Cyprus (hence why I should find out what the local rules are on tax there). No other considerations other than that, would that be correct? Yes, you are taxed on UK income and it will be taxed as normal. However, if you become Cyprus resident then you should be worried about double taxation and reliefs.

I hope this clarify the situation.

Regards

HMAT

Customer: replied 13 days ago.
Hi,Yes that clarifies thank you. I think we are almost there.If I spend less than 183 days in the UK (i.e. I am not a resident anymore) - You mentioned this has nothing to do with double tax, but does that mean I won't be taxed in the UK? (If yes I imagine that could cause other issues?)Thanks,
Stephania

Hi Stephania,

Thanks for your reply.

If you are non resident then you wont pay tax in UK.

Regards

HMAT

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