Paphos People

Sorry if this has been answered before but I'm about to enter the Cyprus tax system and wonder if there is any benefit in getting UK state pension paid straight into my Cyprus bank account.At present I transfer my money from my UK account through Global Reach to my Cyprus bank after agreeing a conversion rate.

Your thoughts are welcome

Personally, my wife and I have our ‘private pensions’ paid directly into our Cypriot account. They are paid in Euro’s at whatever the ‘bank’ exchange rate is the day of transfer

Our state pensions are paid into a UK account and we draw down on it by transfer when the rate is favourable to us

Basically, swings and roundabouts

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Dave
Moira And Dave

“I know that you believe you understand what you think I said, but I'm not sure you realize that what you heard is not what I meant.”

If you just want your pension in your Cyprus account with the minimum of effort, then get it paid direct, but you will lose out of the exchange rate and charges.

Personally I have it paid to a UK account and then transfer it across as necessary using CurrencyFair. For this month's pension I got just over €75 more that by using the bank's own rate. I try and transfer it only a few times a year as the greater the transfer amount, the better the rate.

This topic was discussed on Cyprus FB last week.

One person said the exchange rate for the pension worked out at 1.128 and their currency exchange company was offering 1.13 at the same time.
Many of those who answered have the state pension sent direct to their Cyprus account and it arrives every four weeks similar to UK state pension payments.
Some people didn't want the worry of transferring funds and others are increasingly worried about bank scams.

On another European FB group there is concern about UK banks closing due to Brexit which is another factor to consider when setting up your finances.

Good point, but if you haven't already been told by your bank that they are closing your account, you are probably okay as we are now at the end of January.