Our developer has advised us that our holiday apartment in Paphos is finished and we’ll be flying over to Cyprus next week to pick up the keys.
To help offset the mortgage payments, we plan to rent it out while we’re not using it. I’ve already spoken with a number of companies in the Paphos area who offer property management services and we’ll be investigating them further during our visit.
I appreciate that we may have to pay tax on the income we receive from any lettings, but where do we pay it? In Cyprus or the UK?
Answer
If you live and pay tax in the UK you must declare rental income from overseas property lettings on the foreign pages of your UK tax return. You can read more about this on the UK Directgov website at “Tax on overseas property lettings“
