Quote:
Originally Posted by Hadjiosif
I'm retired I want to spend 2-3 years in Cyprus. (i have a US and CY passports). Cyprus is in EU but not part of the Schegren agreement.
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We will go one step at a time.
I am not familar with the status of Cyprus in the EU but will assume it a "normal"
member.
I will also assume that not only you have US citizenship but also you actually have lived there for several years, still live there and do not "live" in
Europe under any reasonable definition (VAT,
income tax, etc).
Now I can think of two possible plans:
A) (Not preferred for you?) Boat: Enter the EU with the 18-month VAT "Temporary Importation" VAT/duty relief for "tourists who are not established in the EU" (aka art 561 and 562.e). Person: You go into Cyprus/EU as a "tourist", but make sure you do not meet any definition of "living in Cyprus" later because that would trigger VAT liability on the boat. That may be a bit tricky given your stated objectives.
B) (Preferred for you?) Person: You use your right to "move" to anywhere in the EU, in particular to a country in the EU that abides by the supposedly EU-wide harmonized VAT principle that gives "Transfer of Residence Relief" aka TOR for duty and for VAT) from duty (see arts 2-10 of Council Reg 918/83) and VAT (see Directive 83/181) to people who move there. The lovely UK is one such place, hopefully Cyprus is another.
Under TOR you will "permanently import" the boat in to the EU. This will require a CE plate (see sample in attachment; maybe you have one in your boat´s
cockpit already) that you can get from
Beneteau USA is you ask very politely (been there, done that; call +1 843 629 5320 or
email marie dot clemons at beneteauusa dot com).
Here is the detail of option B if you chose to move to the UK:
"You don’t pay VAT or duty on vehicles imported from outside the EU if you qualify for transfer of residence relief. To qualify you must meet all of these conditions:
• you’re moving your normal home to the UK
• your normal home was outside the EU for a continuous period of at least 12 months
• you’ve owned and used the vehicle for at least 6 months outside the EU
• you didn’t get the vehicle under a duty or tax-free scheme
• you’re going to keep the vehicle for your personal use for at least 12 months
To get the relief, fill in form form C104A and give it to
Customs when you enter the country."
Gory detail available at
https://www.gov.uk/importing-vehicle...outside-the-eu
Yo may also want to read
VAT and Your Boat
You just need to find the supposedly similar TOR rules in Cyprus (which are basically part of the rules that would let you bring to Cyprus over your
bed, sofa,
books, clothes, Ford Mustang, Harley Davidson, etc, free of duty and VAT.. Alternatively, you could move to the UK first for a while, hope the
weather is not too bad and Cyprus will later take the UK´s C104a form as good.
On a detail, note that you would need to apply for TOR relief from your "moving to" country before arriving in the EU but you can go through other EU countries before arriving in your "moving to" country.
Of course, in option B you would likely end up subject to all sorts of Cyprus
taxes, but you should be able to claim credit for most
income taxes in your US return.
Cheers
C