Personal Tax

Hello Kyriako,

I'm contacting you regarding some information I need for personal tax income. I have a very good offer of a 4K net monthly salary from a UK company, that wants to hire me as a UK employer while working fully remotely from Cyprus. I would like to know what is the best solution for me regarding the payable deductions. Is it better if I pay taxes in the UK or in Cyprus? What is the pro/cons for each case, and the % for deductions (tax, social insurance etc).

Looking forward to hearing from you.

Best regards,

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Hello,

Before we proceed, kindly advice why you should be paying UK Tax? You are a Cyprus tax resident working from Cyprus --> any taxed to be deducted will be from Cyprus not UK.

Please confirm this point to proceed with consultation.

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Hello,

Thanks for your reply.

The company doesn't have a legal presence in Cyprus and they want to hire me as a UK employee, not as a freelancer, so they offered me this option as well.

I'm not sure what is the best solution for me, that's why I contacted you for advice.

If I pay taxes in Cyprus, shall I register as self-employed or as a company?

Thank you,

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Do you expect to receive more than 48k worth of salary or it is fixed 4k per month? And is it 13 x Euro 4k or 12 x Euro 4k (i.e 13th salary etc)

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It’s 4k net monthly for the first 3 months, and 4.5k net starting from the 4th month, plus bonus which is not standard every month. No 13th salary. Thanks

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I believe its best to create a company not only for taxes but also because of the actual status; you can not be employed as UK employee it is not legal (this is up to your risk appetite) and being a CY employee working for a UK Company you will be paying a large amount of local taxes and so the overseas employer.

We can determine how much taxes and costs you will have working as an employee of a Cyprus Company vs being a local employee at Euro 400 + VAT - this is a specialised detailed work. Once you have the excel spreadsheet you will be able to make an informed decision.

Kindly authorise us to proceed.

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Thanks for your suggestion. I'll let you know if I would like to proceed.

Best,

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Excellent, basically I believe it is worth setting up a company but to give you accurate figures we need to spend a significant amount of time.

Keep in touch,