Conditions for Cyprus Non Dom Tax Residents:

• They have not been living in Cyprus 17 out of the last 20 years in Cyprus (i.e they are not Cyprus domicile)
• And they have been staying in Cyprus at least 60 days (day in and out from Cyprus counts as a day of stay in Cyprus)
• And have not stayed more than 183 days in any other jurisdiction
• And are not tax residents anywhere else in the world
• And have defined Cyprus ties such as a Company or a business contact from Cyprus

 

Note: Origin of domicile is defined at birth and as a rule is the domicile of the father and in some rare instances / occasions of the mother.

 

 

Example of Eligibility

If you are a shareholder receiving large amounts of dividends in high tax jurisdiction and you travel a lot then you should consider the possibility of changing your tax residency as the tax benefits, savings of 0% dividend tax outweigh any possible inconvenience such as travelling to Cyprus for a few days which is a great opportunity to meet up with high level tax advisors and lawyers who can assist you with your existing and other business issues.

In addition as trading in securities is entirely tax free in Cyprus, tax free dividends and trades are perceived as irresistible benefits by a portion of our clients.

 

1. Is it compulsory to rent a property

The non dom application success is subject to the discretion of the examiner reviewing the application. As such the principle of “the more the merrier” applies.

Even though it is not compulsory, it is advisable, especially in cases where the applicant is not on the payroll of the Company

 

2. Is it necessary to register for payroll - be an employee of my company?

In the event that you are not a retiree returning to Cyprus to relocate then it is advisable to set up your own company and become an employee of your company.

If you are a 3rd country national then your visa status must be examined by our team of experts before we apply for your non dom as visa requirements vary and so the eligibility to become an employee in Cyprus.

Read about Cyprus visa requirements here.

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Want to Know More?

 

Read more articles on the  Cyprus Non Domiciled Tax Status below:

• High Net Worth Individuals (HNWI) and Non Dom Special Tax Status in Cyprus
• Cyprus is the most attractive jurisdiction for Company shareholders. We analyse why?
• How to Pay Low Taxes in Cyprus as a Non-Dom
• Non Dom is Cyprus Golden Ace! But there are some immigration hiccups to pay attention to!
• Non Dom. Cyprus Wild Card!All High Net Worth Individuals Must Read This. The Tax Savings are Huge!!!

 

 

Watch articles on the Cyprus Non Domiciled Tax Status below:

• Video 1
• Video 2
• Video 3

 

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3. What is the most common set up for non dom applicants?

The most common, tested, set up for our non dom applicants is the incorporation of a Cyprus Company, the employment of the applicant by the Cyprus Company and the rental of local property on a 12 month period.

 

4. I am an investor and I do not want to become an employee of the Company. I will be living from overseas dividends from abroad.

In the event that there it makes no sense to become an employee of your Cyprus Company then the examination of your application will become more thorough and you will be requested to evidence that your are living in Cyprus.

Such evidence includes visa statements, sometimes car rental or local car ownership and off course electricity authority bills, for a consecutive year from your rented property.

 

5. Is it complicated / hard to obtain the non dom status?

Not at all. These days it is something common as Cyprus has several hundreds of successful applicants from all over the world on an annual basis,

 

6. Is it worth relocating to Cyprus for the non dom?

If you are in a high tax paying country where dividends are taxed more than 20% we believe it is definitely worth relocating. The island is amazing, very big with endless activities for anyone.

More information about Cyprus can be obtained here

 

7. Are all cases easy?

Not all cases are straight forward as each each persons personal circumstances vary!

Some are from the EU and others from 3rd countries (non Europeans). 

Some persons need to be employed by their Cyprus companies and others don’t. Immigration issues and visa availability and tax planning for 3rd country nationals is always very challenging.

 

8. Why cases are easy?

All Non Dom Applications for EU nationals are relatively easy and very likely to be successful. 

Europeans, unlike the 3rd country nationals require a yellow slip which is relatively easy to be obtained. Once this slip is obtained then the yellow slip application can proceed / be applied for.

 

9. I am a 3rd party national considering to obtain the non dom status. Do I need to become an employee in Cyprus or to buy local property?

It is always advisable to become an employee of your Cyprus Company as it shows substance and that you indeed relocated to Cyprus. 

The answer to this question depends really on whether you are a 3rd country national from a highly sophisticated tax country or not. The more advanced and tax sophisticated the country the more likely it is you will have to become employee of your company and possibly buy property in Cyprus.

 

 

Examples of highly sophisticated tax jurisdictions:

• United Kingdom
• Canada
• USA
• Germany
• France
• Scandinavian Countries

 

Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as legal or tax advice. Please consult with a professional tax advisor for advice on your specific situation.

About our firm

We have extensive experience on immigration and relocation matters which are always challenging as immigration programs, visas and requirements tend to change regularly. In addition as each applicants perosboa circumstances and paperwork varies, each application is unique, coupled with each applicants tax objectives makes immigration to Cyprus relatively challenging, especially for 3rd country nationals.

 

CYAUSE Audit Services is here to assist you reaching your goals in an effortless manner! The approach is simple:

 

Step 1 - Consultation on:

1. Tax objectives
2. Immigration objectives
3. Finding the best solution to your needs

 

Step 2 - Implementation

1. Visa application
2. Company creation
3. Bank account creation
4. Registration to payroll
5. Legalisation of status

 

CYAUSE Audit Services is an Audit & Assurance firm with offices in Nicosia and Limassol. During 2015 we have been awarded by I.C.P.A.C and the A.C.C.A (local and international association of Chartered Certified Accountants) for the Quality of our Audit Services and our Office's Procedures.

 

Being a Truly International Audit & Assurance firm, we have associates from all over the world and we are constantly looking for new associates to expand our network further. At present, CYAUSE Audit Services operates internationally via its BKR International association, an American assocication and Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience.

 

Our network covers almost 40 jurisdictions with over 2,000 professionals, it supports more than 10,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and processes at least 170,000 payslips globally.

 

CYAUSE Audit Services Ltd is also a member of 3E Accounting Network, an international accounting network which originates from Hong Kong and has more than 80 members from all over the world.

 

Contact Us

If you would like us to assist you with your investment firm or fund please contact us at enquiries@cyprusaccountants.com.cy or call us at +357 22 336 321.

 

Learn More about Cyprus Corporate Environment

Information about CYAUSE Audit Services and the Cyprus Corporate & Tax System can be obtained from our Website or our YouTube channel which provides valuable information about the Corporate & Tax Environment of Cyprus.