Benefits when becoming a non-Domicile

Cyprus is a country that can provide to foreigners a lot of benefits such as wild nature for exploration, good life and even exemptions in taxes if they need to invest and start operations such as incorporating a new company or becoming self-employed. The main benefits a non-domicile person can enjoy are as per below:

• 60-days rule or 183-days rule

According to the Cyprus tax laws, an individual who wants to become a non-domiciled tax resident, needs to reside in Cyprus for 183 days in one calendar year or not reside in a different country for more than 183 days and reside in Cyprus at least for 60 days in a row will be exempted from the Special Defence Contribution (‘SDC’).

• 100% Tax free Dividends

According to the double tax treaties that Cyprus has established, an applicant can be considered as Cyprus tax resident with the non-domicile status and once a dividend is taken, the applicant will be tax exempted in Cyprus and enjoy tax benefits in the other country.

• Cyprus corporation tax

Non-domicile individuals who incorporate a Cyprus Limited Liability company are taxed only on their Cyprus Corporation tax (12.5%).

• Double Taxation Treaties

The Republic of Cyprus has established and still maintain treaties with many countries worldwide which enables the avoidance of the double taxation between Cyprus and the applicant’s country of origin.

 

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Let us Assist you

Interested in becoming non domiciled. Let us help you. CYAUSE Audit Services assisted tens of shareholders becoming non-domiciled and thus enjoying worldwide tax free dividends. Contact us at enquiries@cyprusaccountants.com.cy for consultation.

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Required information & documentation

If the applicant is an employee in a company, a self-employed, a visitor, a retired person or wants to invest in Cyprus, then it will be eligible to apply for the non-domicile status following the advice of an accountant or a tax advisor. Usually when the application is completed and submitted to the Tax Department, the review and issuance of the non-domicile certificate might take approximately 3-4 working weeks.

For the issuance of the Cyprus tax residence with the non-domicile status certificate, the applicant must know what documents should be gathered alongside with the registration forms (the forms can be found in the Tax Department website).

These various documents should contain the below:

1. A passport copy.
2. Last utility bill of the overseas address.
3. Rental agreement or title deed of the accommodation in Cyprus.
4. A recent utility bill in Cyprus such as EAC (electricity bill) and/or Telephone bill.
5. Tax Identification Code (TIC), if obtained.
6. Passport, Birth Certificates and Marriage certificate of father and mother.
7. Yellow Slip – Residence permit in Cyprus.
8. The last submitted personal tax return in the country the applicant has been living before.
9. The countries the applicant has resided in the last 20 years.

In case the non-domicile application has not been done once the applicant was first relocated in Cyprus and the applicant has been working or living in Cyprus since the relocation day, the below documents should be provided if available along with the previous mentioned documents:

1. Tax Residency certificate.
2. Last submitted personal tax return IR1.
3. Emoluments certificate given by the employer IR63.
4. Evidence of personal paid taxes.

 

On a last note, a person that has Cyprus as a country of origin, will be also treated as domiciled in Cyprus for SDC purposes with the exception of:

• If residing in a different country and has obtained a Domiciled Tax status and was not a Cyprus tax resident for at least 20 consecutive years before the tax year in question.
• An individual who was not a Cyprus tax resident for a period of at least 20 consecutive years immediately before the entry into force of the introduced provision. (before 16/07/2015)

In general, an individual who remains a tax resident of Cyprus for at least 17 years out of the last 20 years before the tax year in question, is considered to be domiciled for SDC purposes.

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 CYAUSE Audit Services

About Us

CYAUSE Audit Services Ltd is performing statutory compliance and tax services to clients who are interested in relocating to Cyprus, as we are specialized in the topic of relocation to Cyprus of individuals and corporations.

CYAUSE Audit Services is an Audit & Assurance firm with offices in Cyprus and the UAE. 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 as 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 BKR International one of the biggest US Accounting Associations of the word and the 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 22 336 309.

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.