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  • Writer's pictureBeyond Borders

Unlocking Potential Tax Benefits: Relocating from the UK to North Cyprus

When considering a move to a new country, it's important to explore all the potential advantages that come with it. One enticing aspect of relocating from the UK to North Cyprus is the possibility of enjoying significant tax benefits.

Roman Ruins
Salamis Ruins

We (Beyond Borders) have written this week‘s post and thought that a brief overview of this lovely subject is just what the doctor ordered! As whilst we have a number of our clients that come to us with tax in mind from the outset, a far greater number come to us without this consideration and subsequently realise this perk and the potential uplift to their finances, as a result of a lifestyle change.


In this post, we will delve into the potential tax advantages that individuals can leverage by making the move to this beautiful Mediterranean island.


Tax-Free Pension Income

For retirees seeking to maximise their pension income, North Cyprus presents an appealing proposition. The country allows individuals to receive their pension income tax-free, making it an attractive option for those looking to stretch their retirement savings further. In combination with a lower cost of living and the potential to retain more of what comes in, North Cyprus can offer a comfortable and financially advantageous retirement.

Attractive Personal Income Tax Rates

One of the primary draws for individuals considering a move to North Cyprus is its appealing personal income tax rate. The country offers a flat tax rate system, which means that regardless of your income level, you will be subject to a single, competitive tax rate should you choose to work in the country. Compared to the progressive tax systems found in many other countries, this can result in substantial tax savings, particularly for high earners.


sea with marina and mountain backdrop
The stunning Northern Cyprus coastline

Limited Inheritance or Wealth Taxes

North Cyprus is renowned for its favourable inheritance and wealth tax policies. Unlike many other countries, there are only nominal inheritance or wealth taxes imposed on individuals. This means that you can pass on your assets to your loved ones without incurring hefty tax liabilities, preserving your wealth for future generations. As of 3rd January 2023, North Cyprus does not impose an inheritance tax on ownership amounts up to 3,255,120 TL. For ownership amounts exceeding this limit, the inheritance tax is a mere 1% of the remaining balance.


Reduced Capital Gains Tax

In North Cyprus, the capital gains tax is significantly lower compared to many other countries. If you plan to invest in property or other assets, the lower capital gains tax can be a compelling incentive. In addition, all individuals have a single tax-free sale right for a house or land (not exceeding 13.38 acres).


old marina
Kyrenia Marina looking out to the Mediterranean

Summary

Relocating from the UK to North Cyprus presents a range of potential tax benefits for individuals. From attractive personal income tax rates to tax-free pension income and limited inheritance or wealth taxes, the financial advantages can significantly enhance your lifestyle and financial wellbeing. Whether you're seeking a comfortable retirement or a business-friendly environment, North Cyprus provides a tax-efficient destination worth considering.


It's essential to consult with a qualified tax advisor and conduct thorough research to fully understand the tax implications for you as an individual or family and to ensure compliance with all applicable regulations. At Beyond Borders Property, we can absolutely help, so you can make the most of your move to this stunning Mediterranean island.









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