A Protocol amending the new Double Tax Treaty (DTT) between Cyprus and the UK of 2018 has been signed on 19 December 2018. The Protocol provides for a “grandfathering” period for what concerns the taxation of pensions.
More specifically, persons previously taxed based on Article 19(1) of the previous Treaty will have the right of election to continue being taxed in accordance with the relevant provisions of the previous treaty. This right will be valid for calendar years ending on or before 31 December 2024. Eligible pensions will, thus, not fall under the provisions of Article 18(2) of the new DTT.
It is reminded that the new treaty came in to effect on 18 July 2018, replacing the one, which has been in effect since 1974.