Cyprus is considered to be a prime choice of destination for individuals (both EU and non-EU) wishing to move their personal tax residency to another country. This is mainly attributed to the non-domicile (“non-dom”) tax regime, which is automatically applicable to foreign persons who become tax resident in Cyprus. In each case, the non-dom tax regime effectively applies for a maximum of 17 years.
Non-domicile resident persons are specifically exempt from Cyprus taxation on dividends and interest, irrespective of the source country and whether the funds are remitted to Cyprus or not. Furthermore, there is a complete tax exemption on all gains from sale of shares and other qualifying titles as well as from capital gains which do not relate to immovable property situated in Cyprus.
These tax exemptions are of particular interest to high net worth individuals, as the vast majority of their income usually derives from dividends, interest and capital gains.
Notwithstanding the above, Cyprus offers an array of other attractive tax elements for both individuals and companies, and also ticks all the needed boxes on the various qualitative elements that the island offers.
Foreign persons can become Cyprus tax residents either through the usual 183 days test or through the recently introduced 60 days rule, which is subject to certain conditions.
Currently, there is a big momentum of foreigners becoming Cyprus non-dom tax residents and effecting their international as well as local business affairs from Cyprus.
You can read more details on the above in our relevant Information Sheets:
How can Totalserve assist?
- All Immigration Department aspects
- Registration with Cyprus tax authorities
- All ongoing personal income tax obligations
- Establishing and administering a Cyprus company
- Establishing a Cyprus International Trust
- Professional director and trustee services
- Company redomiciliations
- Permanent Residency Permits and Work Permits
- Opening of bank accounts
- Accounting/ Bookkeeping
- Property and real estate matters
More information on Totalserve’s wide range of services at www.totalserve.eu
Associated services such as accounting, audit, tax compliance and legal services may be offered through Totalserve’s independent affiliated firms:
P.G.Economides & Co Ltd, Chartered Certified Accountants, www.pgeconomides.eu
E & G Economides LLC, Advocates & Legal Consultants, www.economideslegal.com
For any needed clarifications or assistance please contact Petros Rialas, Head of Tax, at [email protected]
