great opportunity for tax residency

Cyprus has been a full member of the European Union since 2004.

The strategic position of Cyprus, connecting Europe, Middle East, Asia and Africa gives the island great opportunities for business.

A member of the Eurozone since 2008.

the OECD directive in transparency

The banks in 120 countries that signed OECD (Automatic Exchange of Financial Accounting Information) are obliged to give details of their clients to their home countries, with the first exchange of information to occur in 2017 or 2018.

Non-Cypriots with Cyprus Tax Registration will be in the position to instruct their bankers abroad that they have Cyprus tax residency and that disclosure of any details of their bank account shall be limited to the Cypriot Tax Authorities ONLY and NOT to any other country.

taxation benefits for non-domiciled residents

According to this Law, an individual who is a Tax Resident of Cyprus but lived in Cyprus less than 17 years in the last 20 years, is classified as “non-domiciled” and there is no tax payable on his income in Cyprus or abroad on bank interest, dividends and rents. A large part of income of high net worth individuals is usually comprised of dividends or interest.

Income TaxSpecial Defence
Contribution (SDC)		General Health
System (GESY)
TYPE OF INCOMENon-DomicileNormal RatesNon-DomicileNormal RatesNon-DomicileNormal Rates
DIVIDENDSExemptZeroExempt17%2,65%2,65%
INTERESTExemptZeroExempt30%2,65%2,65%
RENTAL INCOMEExemptZeroExempt3%2,65%2,65%

information about rental income

ALLOWABLE DEDUCTIONS

→ 20% of the income is deducted for maintenance.

→ Loan interest to purchase the property.

→ Depreciation (rates vary).

→ Local taxes paid in accordance with Double Taxation Treaties.

→ First €19.500 of the taxable income is tax free.

OTHER TAX ADVANTAGES FOR INDIVIDUALS

→ Capital Gain Tax is not payable on any gain reapzed from the sale of immovable property located outside Cyprus.

→ No inheritance tax, no wealth tax, no gift tax.

→ Individuals who are beneficiaries of a Trust, are exempt from tax in Cyprus, to the extent that the income from the Trust is in the form of Interest or Dividends.

→ Profit on the sale of titles is exempt from Income Tax in Cyprus. These include ordinary shares, debentures, bonds, etc.

Cyprus tax residency

CERTIFICATE FOR THE CURRENT YEAR

Applies to individuals who in the relevant tax year:

  1. Register with the Cyprus Tax Department and obtain Tax Number.
  2. Keep a place of residence in Cyprus (rented or purchased).
  3. Their passport shows entries and  exits to Cyprus (one entry in the current year is sufficient).
  4. Submit evidence of the income to be declared in the current year, bank interest and dividends only.

THE “60 DAY RULE”

Applies to individuals who in the relevant tax year:

  1. Intend to reside in Cyprus for at least 60 days in aggregate.
  2. Complete and sign declaration form TD126 of their intention to stay in Cyprus more than 60 days in aggregate.
  3. Are directors of a Cyprus Company.
  4. Do not reside in any other country for a period exceeding 183 days in aggregate.
  5. Is not tax resident in any other country.

THE “183 DAY RULE”

  1. Complete and sign the declaration form that they intend to stay in Cyprus for more than 183 days in aggregate and prove it with their passport stamps or air travel tickets.

CERTIFICATE FOR THE PREVIOUS YEAR

Applies to individuals who in the relevant tax year:

  1. Submit tax return for the previous year with supporting documents of the income declared.
  2. Prove that they actually stayed the previous year in Cyprus for more than 60 or 183 days, depending on the signed declaration, by showing a copy of their passport (entries and exits from Cyprus).
  3. Kept a place of residence in Cyprus the previous   year (rented or purchased).
  4. Specify who requested the Tax Certificate e.g. a foreign bank or Tax Authorities abroad.

service for non-domiciled tax residents

SERVICES PROVIDED FOR PERSONS WHO ARE NOT PRESENTLY CYPRUS NON-DOMICILED TAX RESIDENTS

SERVICES PROVIDED:

→ Registration with the Cyprus Tax Authorities.

→ Preparation and submission of Annual Tax Return.

→ Certificate of Tax Residency.

→ House ownership or rental with utipty bill.

→ Local bank account.

→ Certificate issued by the Tax Department of Cyprus in a format designed in accordance with the Council Directive 2003/48/EC.

Consultation meetings and follow up on any outstanding matters are included in the services.

additional possibilities

→  Further opportunities can arise with the creation of a Cyprus Company for International Business.

→  The Owner (Beneficiary) of this Company – A Tax Resident in Cyprus can act with the required transparency according to comppance of banks in Cyprus and other countries where the company plans to open accounts.

→  We can set up a Cyprus (Nominee) Company and support its activity with a bank account and offer accounting and auditing support on an annual fee basis.

indicative services

Registration Fees:

It takes up to 10 working days

Includes the following:

→  Certificate of Directors & Secretary

→  Certificate of Shareholders

→  Certificate of Registration

→  Certificate of Registered office

→  Certificate of Good Standing

→  Memorandum & Articles of Association

→  Nominee directors / secretary/ shareholders

→  Registration for VAT & VIES

→  Registration for Taxation

→  Provision of Registered office

→  All documents apostilled

→ Dormant Company (does not trade)

→ Trading Company (the fees charged vary depending on the volume of the work)

→ VAT Returns

→ Yearly Audited Accounts

→ Yearly Annual Return (filing company annual return with the Registrar of Companies)

→ Nominees (Director, Secretary, Shareholder, Registered Office)

→ Eurobank

→ Bank of Cyprus

→  Paying National Insurance contributions for a certain period.

→  Obtaining Certificate of Registration from the Immigration Department.

→  Six months after, we file a tax return with a rental agreement of a property in Cyprus to obtain Tax Residency.

→  Can get also a European Health Card but  payment of national insurance contributions in Cyprus is required.

Caribbean

→  St Vincent and the Grenadines.

UK Company

→  including a UK Registered Office.

Dubai

→  Registration and Annual Renewal.

→  The above will take approximately 5-10 working days.

For indicative charges please contact us!