Cyprus and UK sign new pension protocol

Cypriot Minister of Finance Harris Georgiades and British High Commissioner to Cyprus Stephen Lillie, signed Wednesday, a protocol amending the Convention for the Elimination of Double Taxation between the two countries, concerning pensions.
 
The signed Protocol introduces grandfathering period for the calendar years ending on or before 31 December 2024 so that persons whose pension was subject to tax in Cyprus under the provisions of Article 19 (1) of the Convention of 1974, may choose that the provisions of that Article shall continue to apply for calendar years ending on or before 31 December 2024 to be taxed under the Convention of 1974 and exempted from the provisions of Article 18 (2) of the 2018 Convention. 

The Minister of Finance of #Cyprus @Georgiades_H and British High Commissioner in #Nicosia @StephenLillieUK sign the amendment to the Double Taxation Convention, which allows those who receive government service pensions and reside on the island to elect where they will be taxed. pic.twitter.com/vhggeTuMMR

— UK in Cyprus (@UKinCyprus) 19 December 2018

In his statements at the signing of the protocol, Finance Minister Harris Georgiades said that the latest amendment of the Agreement created a framework that facilitates economic cooperation, fiscal stability and transparency in the relations of the two countries.
 
As he said, the first such agreement was signed in 1974, it was revised in 1980 and again in early 2018. He also noted that there was a large Cypriot community in the UK and an equally large community of citizens of the United Kingdom in Cyprus.
 
He also stressed the really excellent level of political and economic relations between Cyprus and the United Kingdom.
“The United Kingdom was and remains for us a strategic partner, a country with which we have relationships that could not really have been closer
This is also true in the field of the economy and such an agreement, which must constantly be adjusted and modernized, serves to further expand the already very close economic and political relations”, said the Minister.
 
The British High Commissioner expressed his satisfaction on the signing of the agreement.  
 
“We have very very close relations between the United Kingdom and Cyprus, not least in the economic field and this amendment to the double taxation agreement is an important step forward in maintaining the very close relationship”, he said.  
 
He added that the agreement was particularly important given the close people to people links and the fact that they had very large Cypriot community in the UK and the around 70 thousand British living in Cyprus.
 
As Lillie said, the agreement was very important for those individuals, as it modernized the double taxation agreement between the two countries, brought it in line with best practices and was also recognizing the important circumstances and aspirations of the two communities.