Start-up to Cyprus (UK Citizen)

I am shortly moving to cyprus  and  I have to work. Atm my business is in uk and I am hoping to continue this by making return trips to the UK.  I do also want to start up in cy as self employed. My question is  who do I pay my tax to? , do I continue to pay my tax to the UK even though I won't be residing there? Or do I include my earnings with cyprus tax  . 

Οur Response:

Hello, where you pay your taxes depends where you are tax resident. Mind you you could have dual tax residencies but this is not so much advisable. The gist of the matter is that you can trade in both countries and declare your income to the country where your tax residency is.

Example:

1. UK company pays you dividends + you are Cyprus Tax Resident

=> You will declare UK dividends in the Cyprus tax return (together with UK associated taxes paid) together with the Cyprus income and taxed accordingly. If you have paid taxes in the UK it is unlikely you will pay again in Cyprus anything due to Double Tax Treaties and the fact that Cyprus taxes are less than UK ones.

2. Cyprus company pays you dividends + you are a UK Tax Resident

You will pay the Cyprus dividend tax and declare both Cyprus Net Dividends + Associated Taxes to the UK Tax Return. As above, there is double tax treaty hence it is unlikely to pay more UK tax than you would eitherwise do if such dividends were paid by your UK Company (the double tax treaty ensures you are not taxed twice on the same income).

Hope this helps, send me a private email if you need more assistance at [link under review].

Thank you,