CYPRUS RESIDENT AND NON-DOM STATUS
The Mediterranean island of Cyprus, a full member of the European Union, is an independent state already since the 1960s. In particular, the Mediterranean lifestyle, over 340 days of sunshine per year and a unique flora and fauna annually attract more than three million tourists. Cyprus applies, also from a political perspective out considered one of the safest countries in the world and are international crime ranking one of the best places.
The extremely high level of security, friendly people in a relaxed environment, modern infrastructure, steadily increasing economic data and a unique advantageous tax laws have led since 2015, is that the population through immigration from about 700,000 to currently raised over 1.2 million has,
ECONOMIC BENEFITS CYPRUS WITH NON-DOM STATUS
Cyprus offers migrant foreigners with Non-Dom status an extensive tax-exemption on dividends. Prerequisite for use is the relocation of tax residence in EU member Cyprus, as well as the application of the so-called Non-Dom status.
International generated net interest and investment income, such as stock trading, not subject to taxation in Cyprus. This rule applies to individuals with Cyprus Non-Dom status. Legal persons in Cyprus is also provided using legal constellations tax benefits. Seek advice from our experts!
While only up to "withdrawal" have validity for Non-Dom status in the "old" Non-Dom States the legal regulations, Cyprus guarantees this program by law to run for 17 years. This creates planning security for almost two decades. Currently in which the world is constantly changing tax legislation, a very valuable asset for Cyprus.
Cyprus has adapted its tax law advanced needs and now open with the elimination of other pan-European 183-day rule its doors for entrepreneurs who want to get a maximum amount of flexibility.
The statutory tax residence and all the benefits of Non-Dom status provides Cyprus already at an annual stay of only 60 days. It is irrelevant for Cyprus, if the resident spends the minimum number of days in one piece or intermittently in Cyprus.
A simplified overview shows how the residence for tax purposes can be kept permanently in Cyprus:
One of the biggest advantages of Non-Dom status is in Cyprus that base taxation is eliminated the so-called remittance. The Tax Law of Cyprus therefore not taxed dividends of foreign origin. Earned capital can thus transferred internationally freely held and has - tax-free!
How adversely a remittance base taxation impacts in other states, can be found here:
Cyprus submitted no control and account details to other states unless you entertain your tax residence exclusively in Cyprus.
Cyprus is, in accordance with the internationally accepted criteria, by definition, not a low-tax country.
Cyprus offers corporations resident in the country, the Cyprus Limited, significant benefits in the areas of taxes and fees. Corporation tax in Cyprus is only 12.5% for corporations. In addition, there is the Cyprus society allows, for example also issues of low-taxed companies to declare as business expenses.
Variants to take up residence with Non-Dom status in Cyprus
Cyprus company formation company for international business with Non-Dom status
Simply Non-Dom self-employment for non-international business
Financially independent persons (Note 2) *
Services and fees
Step by step
Company formation, residence relocation and Non-Dom status in Cyprus.
Passport (ID Card) in the original with a validity of at least 6 months.
the employer (provided at most one week prior to the date of the signature and stamp of the employer) certificate. not applicable not applicable
Proof of payment of insurance contributions for at least 2 months, if no activity report rendered necessary
Application fee 20.00 euros in cash.
Detecting an existing health insurance (inpatient and outpatient treatment).
S1 form / E121 form
Cyprus Hospital card (pink card)
Private health insurance
When it comes to health insurance in another country, the appropriate insurance contract must be presented. It must be demonstrated that the existing health inpatient and outpatient cover treatment costs.
Lease or Deed (in property) is required
To demonstrate the financial situation, bank statements must be submitted in the last 6 months.
The statements must have been verified by the relevant bank.
Minimum per year: 60+ days 60+ days Tage183 +
A Cypriot mobile phone is required - NO BINDING CONTRACT
The notifiable in Cyprus activities were previously exercised by the applicant. Evidence may include the submission of its business license, proof of existing customer relationships and similar documentation.
What is needed beyond a short CV and a suitable proof of qualification for the requested by the applicant activity in Cyprus.
The submission of consumption bills, at least one current water and electricity billing is required. The consumption accounts must be in the name and current address of the applicant in Cyprus.
* If the applicant, for example, holding a foreign or offshore company, the income earned from the monthly income must demand assign accordingly.
Proof is (monthly minimum about 2,500.00 euros - evidence of the past three to six months) by the submission of relevant bank statements from the personal account of the applicant.
COMPANY FORMATION CYPRUS
Some locational advantages of Cyprus (EU)
The regular corporation is 12.5%.
There is no business tax in Cyprus.
There is no tax on dividends paid by a Cyprus company, this applies to both Cyprus Non-Dom as well as for non-resident persons in Cyprus.
Losses of a Cyprus company can be carried forward *.
Gains from investment transactions are tax-free under certain circumstances.
There is no recalculation of tax expense (significant advantage over the Republic of Malta).
The inheritance of shares is tax free in Cyprus.
The Cyprus Limited is a globally recognized form of society.
The VAT number provides "Trade Intra-Community" for an unproblematic.
Tax benefits for Relocation of residence:
In addition to numerous other benefits, which we will present to you the following yet, is currently special mention: Shift your residence to Cyprus, you will benefit in the future from enormous benefits through the Non-Dom program for Cyprus.
Other new features and amenities:
The Cyprus Company is authorized to conduct bank accounts outside the EU.
Uninterrupted full service for your Cyprus Company
You get a free quote in advance by our tax consultants and lawyers - via mail.
We advise and check, if desired, your project from a tax and legal perspective.
You are always advised by our experts in your language and cared for.
We offer advice and active assistance in the areas of residence relocation, Cyprus Non-Dom and tax optimization.
We advise a combination of Cyprus society (EU) and in terms of opportunities "tax-deferred" Non-EU companies.
Reliance on professional ethics
Our company and our employees are bound by legal confidentiality.
Our services are available in best quality.
We offer you the opening of corporate and private accounts in 20+ jurisdictions.
As a rule, you must do not appear in person to open an account.
Our bank partners offer the full range of banking services.
Online banking and Visa-Mastercard - these services are part of our standard banking.
Includes company formation in Cyprus
German-language and free advice on legal and tax issues;
Examination of the company name in the trade register Cyprus (EU);
Preparation of the statutes and documentation of your Cyprus Limited and Cyprus Holding;
Creation of the social contract and submission to the Commercial Register of Cyprus;
Payment of charter fees to the Cyprus Limited and Cyprus Holding the register;
Certification of registration documents including translation (English language).
Service Manual including full documentation in the original.
Handing in our office or by courier.
Support at the opening of business accounts in Cyprus;
Support for the opening of private accounts in Cyprus;
Assistance in opening bank accounts in over 20 countries around the world.
incl. Reg. Office, Reg. Agent and trusteeship
Provision of Reg office and registered agent for your Cyprus company..;
On request the transfer of escrow services.
incl. legal and tax
Applying the tax number for private individual and society;
Applying for a VAT ID number (abbreviated to "VAT");
The opening balance sheet of your company;
Conditioning the current accounting and VAT accounts;
Exhibition of contracts;
Applying the necessary social security number (n);
ongoing legal and tax advice for Cyprus.
incl. service for your establishment in Cyprus
Provision of appropriate space to display your required operating site;
Examination of the rental offer and lease by our own lawyers;
Certification of the lease after completion;
Assist in the notification of a corresponding telephone and Internet connection;
the monthly. Rental cost of a simple one-room offices be from about 200.00 euros.
The establishment of your business can be combined with your private occupied dwellings. The formation of your company in Cyprus needs about 10 working days. It takes place after the establishment of the fiscal investment of your company. With VAT and tax accounting number will be activated. Following all tax and legal obligations continuously following services are provided by the various departments in our company to meet.
Start-ups and international offshore solutions
Smith & Smith Global Advisory establishes worldwide companies and also offer interesting offshore solutions.
An offshore solution can be a company in Cyprus, of course, directly related to the establishment, as the Cypriot government accepts these solutions and models. We will advise you in this area.
For more information on the company foundations under
The shift of personal and tax residence to Cyprus is an inexpensive and largely bureaucratic matter. EU citizens are available for this purpose three main variants in which we will discuss in detail below.
In addition, Cyprus offers all immigrant aliens who very interesting economic opportunity to enter the cathedral status in a so-called Non.
The significant benefits arising from the transfer of residence and the Non Dom status in Cyprus, are unique in Europe.
As an owner or shareholder of a company is entitled to a share of profits in the company. This so-called dividend is generally subject to income tax. Persons with Non Dom status in Cyprus collect dividends completely tax-free. It does not matter whether it is Dom is in the business of Non is a company in Cyprus or a in another country of domicile.
A person with Non Dom status in Cyprus it is quite permitted, even companies in so-called low-tax countries, that is, countries with 0.00% tax to entertain. This, means for entrepreneurs with only low-taxed companies and international bank accounts not only flexibility but also also significant tax benefits to all profits earned.
Who wants to be an international business in and out of his new home Cyprus out and developing an international tax and business premises needed is excellent advice with the establishment of a legal entity in Cyprus.
In addition to a low corporate the establishment of a Cyprus Limited offers some other advantages:
It is the easiest and fastest way to take up residence with Non Dom status in Cyprus.
Company owner (shareholder) in Cyprus can even "set" and enjoy therefore full social protection. You can collect in this way up to 19,500.00 euros per year as income from earned income, without having to pay income tax.
Who, for reasons of public pensions, protection from unemployment or from another motivation also more than see the. want to pay tax allowance as income from work can do so with an income tax benefit of 50% for five years.
Requirements to take up residence with Non Dom status in Cyprus
Close this window first, and return to our website. There you will learn step by step how to safely, quickly and easily your tax residence Non Dom status can apply in Cyprus.
For private investors and traders Cyprus is a true paradise. No other EU country offers wealthy individuals and local companies so many opportunities and economic benefits.
Interest and other investment gains are tax-free! Cyprus does not tax this income, regardless of whether these are generated at home or abroad Interest and investment income.
Non Dom status in practice
The Non Dom States UK, Malta, Ireland & Co. offer to foreigners residing in the country, as well as Cyprus, a hitherto practiced exclusively in the UK legal use, the so-called Non Dom status.
In contrast to EU member Cyprus, however, the Non Dom status is different there in a very important point. In Malta, Ireland, UK & Co. of Non coupled cathedral status to a complicated and adverse tax legislation, the remittance base taxation.
What does "Remittance base taxation"?
Income not to be subject to taxation, having to run to a bank account outside the Non Dom State are held there and must also follow not be introduced in the State Non cathedral or even used there.
In addition, the income may not come from domestic sources. Once this regulation is not considered by the Non Dom, subject to such income, in spite Non Dom status, the regular income tax in each country.
can bring the enormous in everyday business and personal life problems and ultimately means the opposite of "simplified tax structures," shows up on the basis of simple examples:
Lack of flexibility: An entrepreneur warps example, to the island of Malta, there to benefit fiscally from the advantages of Non Dom. Due to the remittance base taxation, however, leads to the following limitations for him:
May the Non Dom, to lead to its business on the spot and also to benefit from low corporate taxes, his company settle in Malta would, he pronounced submit all dividends personal gain from the company, the regular income tax in Malta.
Income Tax: Even the use of a foreign credit card Non Cathedral in Malta leads the way to that possessed the domestic foreign income but are subject to 35% income tax eventually.
Conclusion: Aside from the fact itself that the accounting separation of these may develop various Einkunft- and uses of an accounting monster, in particular the question of how a Malta-based Non Dom provides its running costs, cost of living, investment and acquisitions in the home to deny.
Tax breaks certainly not!
To avoid disadvantages of Remittance base to compensate for taxation is offered in particular by founding agencies on the Internet a so-called holding company model for Malta. Let's look at this "solution" by Malta Holding to conclude by common.
The Malta Holding Model
In order to remain financially flexible and not to give up the advantage of the tax exemption of non Cathedral in Malta, the Non founded Cathedral in Malta not only society but equal to at least two companies - an operating company and, moreover, Malta Holding.
The sole shareholder of the operating company provides Malta following the Malta Holding. The Malta holding company in turn owned by a company or a private individual outside of Malta.
Thus this construct reserves in practice acquis, there are some points to consider here. For example, should not evidence arises, it could be in the operational Malta Society and also in Malta holding an illegal intermediate company. This is regularly present when a company no substance has (letterbox company without employees and permanent establishment) or even from abroad is "directed".
In this example, which can be found in a similar way for the sites UK, Ireland & Co. in publications, the question arises: "Why easy if it's also complicated?"
Cyprus is, we look at it objectively, the paradise for entrepreneurs, self-employed, freelancers, e-commerce, offshore contractors and many more. And by the 60-day rule any alien resident in Cyprus is enough time to spend at places of their choice a lot of time. Flexible and secure.
The action brought in Cyprus corporation tax of 12.5% is a final tax represents. Cyprus waived in this connection to the offshore taxation and "saves" so that the shareholders of the company's complicated tax returns, application positions and wait for any pro rata refund taking place.
to operate as a fully-fledged European company with VAT number and permanent establishment for tax recognized worldwide operations (which corresponds here Limited by definition of a German GmbH or Spanish Sociedad de responsabilidad limitada, also referred to as "SL").
In Cyprus, no business taxes or even Solidarabgaben exist.
Cyprus company participates in another company, the resulting dividend payments are tax-free!
Profits from stock trading and most other forms of investment are tax-free also in Cyprus.
Losses of a Cyprus company can be carried forward *.
The permanent establishment of a Cyprus company can usually on the private accommodation or the private home of one of the shareholders are logged (except production). Especially for the Cyprus Non Dom this regulation is extremely advantageous since cost of renting commercial space omitted.
Bank accounts can be carried out on request outside Cyprus (capital protection clause).
The inheritance of shares is tax free in Cyprus.
These and many other advantages of Cyprus. In connection with the Non Dom status or several shareholders that their dividends may take tax-free, this is a tremendously valued, high-value and long-term alternative to taking up residence in Cyprus.
SECOND CITIZENSHIP - PASSPORT
Cyprus offers two golden visa programs through real estate investments. One for permanent residence and one for citizenship. The two Cypriot immigration investment programs provide swift and efficient residence permits and a second passport.
Cyprus is a full member of the European Union and English is spoken frequently on the island.
Contact our consultants for more details.
Price: From € 2,150,000 + costs
Flexible. No minimum stay.
Citizenship after investment Cyprus
Cyprus offers the fastest and safest way to becoming a citizen of a European country through the Cypriot Citizenship Investment Program.
Real estate requires investments of EUR 2.0 million and a donation of EUR 75,000 to the government's research and development fund and EUR 75,000 to the Land Development Organization.
Cyprus offers a unique citizenship within just 6 months of such an investment. This will give you a Cypriot passport and the citizenship of an EU country that allows you to work, travel, study and live anywhere in the EU, including in countries such as Germany, France and the United Kingdom. The investment can be reduced to just € 500,000 after 5 years.
The main attraction for wealthy individuals is the fast citizenship that is offered for qualified real estate investments. Find out about the program for citizenship after investment in Cyprus.
Applicants must have a clear criminal record. There are no language requirements, medical tests or interviews for applicants for citizenship.