North Cyprus (TRNC) Tax

Taxation in North Cyprus
Please note there is no double taxation agreement between North Cyprus (TRNC) and the UK.

I am afraid that getting definitive guides to taxation in North Cyprus appears difficult. Three separate professional advisers resident in North Cyprus have given us different interpretations. The ‘theme’ though from all is:

The tax rates for individuals officially are a progressive scale between 10% and 41%.

• There is a 20% income allowance before taxation
• You also receive annual exemptions (similar the personal allowances in the UK) of £2500pa.
• Currently foreign nationals resident in North Cyprus (TRNC) only pay tax on money brought in to the jurisdiction.
• Inheritance tax stands at 25% beyond an exemption of approx. £100,000

A QROPS in the jurisdiction of Guernsey would be deemed an offshore Trust arrangement which is technically not recognised or taxed. Only income derived is taxed. All money withdrawn from a QROPS is treated as income usually. It is our understanding that because you, the member, do not own the assets within the fund nor have any consolidated right, the QROPS would be non chargeable to inheritance tax in both the UK and North Cyprus.

It is essential to seek professional tax advice from a suitable qualified tax Accountant in North Cyprus. Med-Ex Financial Advisory Services cannot be held liable for tax implications or changes in interpretation of tax residency in North Cyprus.