Tax on savings in south Cyprus

[rocking]

Heard on the news this morning now headlines in Daily Mail and other uk paper. All businesses plus anyone who have 100,000 euros or more will have to pay a levy of 9.9 per cent those having lower savings pay 6.6. All ATM. Machines have been emptied and banks are closed until Tuesday there they are expecting trouble trying to get money out, but reading the article seems that the levy will have already been taken out. This applies st savings of British Service Personnel. Quite frightening really, considering the new president before he was voted in said ordinary people would not be asked to pay for the bankers errors. Very interesting. So work pay taxes, save a bit, then the government take it - unbelievable.

[Sandman]

Nice the Greek cypriots under the cosh . They haven't been bothered by the hardships caused to the Turkish side by their actions.What goes around etc etc.

[Maisiemoo]

I have never seen so many comments in the 'Cyprus Mail' about a subject before, people are outraged and rightly so in my view. This is supposed to be aimed at the bank deposits of the Russians but is actually hitting hard the ordinary man in the street & many ex-pats as well. Supposing you had recently transfered money to Cyprus to pay for a house and suddenly you have to find an extra 15,ooo euros from somewhere, this is daylight robbery and nothing more.
Sandman be careful what you say, other governments may be eyeing this with interest and who knows who will be hit next!

[belle]

I have never seen so many comments in the 'Cyprus Mail' about a subject before, people are outraged and rightly so in my view. This is supposed to be aimed at the bank deposits of the Russians but is actually hitting hard the ordinary man in the street & many ex-pats as well. Supposing you had recently transfered money to Cyprus to pay for a house and suddenly you have to find an extra 15,ooo euros from somewhere, this is daylight robbery and nothing more.
Sandman be careful what you say, other governments may be eyeing this with interest and who knows who will be hit next!

Maisemoo you are spot on, people this side can gloat but I have always thought the TRNC would impose a property tax or bank tax on expats at some time, it could be sooner rather than later.

[teg17]

This is nothing more than theft. I wonder if there will be any legal recourse against the Cypriot government via the EU laws and statutory regulations concerning the protection of funds invested in EU banks up to 100,000 euros. Could be a field day for solicitor litigation.

[belle]

This is nothing more than theft. I wonder if there will be any legal recourse against the Cypriot government via the EU laws and statutory regulations concerning the protection of funds invested in EU banks up to 100,000 euros. Could be a field day for solicitor litigation.

It was the EU that brought this about.

[Lovelife]

Re the service personnel working on the British bases.
On the Andrew Marr show this morning, George Osbourne stated that those working and serving on the British bases would be compensated for the loss of their money.

LL

[Maisiemoo]

Compensated by the British tax payer I presume, so the British people as a whole don't escape contributing to the bailout, albeit as in a small way & I don't believe the service personnel should suffer.

[sophie]

Dear heaven above, don't put any more ideas in this bonkers Government. I can just see it, locals will be charge 4.5% on the higher amount in their bank accounts and Ex-pats 9% regardless of how much we had in our accounts. First thing tomorrow they'll be in the Finance Department in Lefkosa playing with their abacus and wondering whether they could get away with it!!

[raffs]

Dear heaven above, don't put any more ideas in this bonkers Government. I can just see it, locals will be charge 4.5% on the higher amount in their bank accounts and Ex-pats 9% regardless of how much we had in our accounts. First thing tomorrow they'll be in the Finance Department in Lefkosa playing with their abacus and wondering whether they could get away with it!!

They already cream off a 10% Tax on interest paid, that's £80 for every £10,000 invested in a deposit account. You would think and hope they wouldn't be foolish enough to kill that little earner for themselves.

[cyprusishome]

The tax on savings interest here maybe 10% but if you had the same savings in another European country what would it be? In the UK it used to be 20% when we moved here what is it now?
Also the amount of interest you are quoting would be on a TL account if you had it in sterling it is considerably less. So to say you are having savings "creamed" here is grossly unfair as you are actually earning considerably more than anywhere in EU.

It will be interesting to see what happens in the vote that I now read will take place on Tuesday, unless Russia bails them out then Cyprus will be a no go area as it will be bankrupt.

[CatalkoyChris]

It has been happening for several years in the uk now.
It is called "financial repression", no matter where you put your savings they never quite keep up with inflation.
So uk savers have had roughly the same amount of money taken off them, just over a longer period of time.

Not sure what is happening over there in the North?

But do please have a little sympathy. This won't help both side come to a closer agreement in the future.