Question Cypriot Non Dom looking for possibility to NOT spend 2 Month in Cyprus

[cypriotnondom]

Hey there,

I have
My actual Situation is following:
German citizen with tax residence in Cyprus with Cypriot Ltd. and Non-Dom status in Cyprus. (since 2020)
I don't want to stay the 2 months in Cyprus anymore. (spending most time in different Asian Countries, Nowhere more then 180 days)
At the moment I receive a small salary from the Cypriot company + amounts of dividend payments.

I was running an e-commerce business through the Cyprus company. However, I sold it at the end of last year and at the moment I am not 100% sure if I will do e-commerce again. Maybe I will put the cypriot company to sleep for a bit.

My time split at the moment looks like this: 2 months in Cyprus, 2-3 weeks in Germany and the rest in Bali, Thailand and Colombia.
I would like to leave out the 2 months in Cyprus.
I thought about if it would be maybe possible with a Portugal NHR status?

From my research I would need:
-office space and 1 other director in cyprus
-1 Appartement for yearly rental in Portugal (could get rent from a friend there)

What other options would I have here? Is there something else to look into?

 

[TRGali]

They've got some pretty chill rules over in Cyprus, like you only gotta be there for 2 months a year to qualify for their tax setup! If you can't swing that, I'd forget about trying to cut your tax bill through some overseas company and instead take a look at sorting it out locally.

That's not entirely true, to get the residency certificate in Cyprus, you also need to own / direct / work for a company there.

 

[SoNewToAllShit]

Every solution will "work" until Germany asks you for a tax certificate to prove that you are a tax resident elsewhere- regardless of Portugal, CY or Thailand or Mars. No country will give you such a certificate unless you actually spend the minimum required time there.

Cyprus is by far the easiest with only 60 days requirement.

If you can't do that, then you take the risk of Germany asking you in 5 years to prove you were actually not living in Germany or be taxed to death, and the German tax office is notorious for that. Don't be stupid, sit your 60 days and get your tax certificate.

sorry to reopen an very old post.

The tax certificate is that required regardless where you relocate to? Say I relocate from Sweden to Switzerland (stay for 3 years) , I will need a certificate from CH to avoid taxes in Sweden?

 

[TRGali]

I don't think it's such a requirement, this certificate may be asked by Sweden (I don't know about the specific of Sweden), usually they don't ask it per default, only if they look into you... to be double checked depending on the country you leave. That certificate can be one of the supportive documents they ask in case they look into you. I hear some countries will be satisfied enough with it to leave you alone, and some will not see it as any close to proof enough.

 

[JustAnotherNomad]

The tax certificate is that required regardless where you relocate to? Say I relocate from Sweden to Switzerland (stay for 3 years) , I will need a certificate from CH to avoid taxes in Sweden?

No.
A tax residency certificate is a confirmation from a government that they consider you to be living in that country and that you should pay your taxes there, according to their local laws. That's it.

Cyprus requires just 60 days in country to issue the certificate.
Now imagine you spend 195 days in Sweden, where you own a house, car, your wife and kids live there together with you.
Then you go on vacation to Cyprus for 60 days, register as a resident and apply for the certificate.
Do you think Sweden will care one bit? Obviously you're still living in Sweden and have to pay tax there.

Now there can be some cases where the certificate can be useful. You have sold your house in Sweden, you and your family have really moved to Cyprus.
You tell the Swedish tax office: "I have moved to Cyprus, I won't be paying tax in Sweden anymore, f**k you!"
Now they may not believe you: "Oh yeah, right. Where's your proof?"
Then the tax residency certificate may be useful. But also other documents, such as flight tickets, rental contracts, utility bills from Cyprus etc.
It's not a magical get-out-of-jail-free card.

But at the same time, it's also possible that the Swedish tax office just goes: "Oh, alright then. See ya!" and never asks for any additional documents.
Obviosly if they later find out you didn't really move, that would be a huge problem. But the tax residency certificate as a document is rarely needed.
It's just a confirmation that you really live in a country, according to that country's own tax laws.

 

[TRGali]

For the sake of accuracy, in theory Cyprus won't give you the TRC if you spend more than 6 months in another country. As 60 days is not the only condition to get the TRC, you need also to be able to demonstrate you are not a tax resident in another country and that you hold an office / be an employee in Cyrprus.

 

[oldtimer2]

No.
A tax residency certificate is a confirmation from a government that they consider you to be living in that country and that you should pay your taxes there, according to their local laws. That's it.

Cyprus requires just 60 days in country to issue the certificate.
Now imagine you spend 195 days in Sweden, where you own a house, car, your wife and kids live there together with you.
Then you go on vacation to Cyprus for 60 days, register as a resident and apply for the certificate.
Do you think Sweden will care one bit? Obviously you're still living in Sweden and have to pay tax there.

Now there can be some cases where the certificate can be useful. You have sold your house in Sweden, you and your family have really moved to Cyprus.
You tell the Swedish tax office: "I have moved to Cyprus, I won't be paying tax in Sweden anymore, f**k you!"
Now they may not believe you: "Oh yeah, right. Where's your proof?"
Then the tax residency certificate may be useful. But also other documents, such as flight tickets, rental contracts, utility bills from Cyprus etc.
It's not a magical get-out-of-jail-free card.

But at the same time, it's also possible that the Swedish tax office just goes: "Oh, alright then. See ya!" and never asks for any additional documents.
Obviosly if they later find out you didn't really move, that would be a huge problem. But the tax residency certificate as a document is rarely needed.
It's just a confirmation that you really live in a country, according to that country's own tax laws.

Don’t forget, some countries like France will try to catch you in their net if you spend more days in their country in the tax year than days in the country where you might have say 60 days based residency. so there are more ways to fall into tax residency problems - and the fact malta and Cyprus rules say your tax residency in those countries is okay from their perspective (if you stay not more than 183 days in any other country) as others have said that 183 day rule does not apply in an increasing number of countries.

 

[JustAnotherNomad]

Don’t forget, some countries like France will try to catch you in their net if you spend more days in their country in the tax year than days in the country where you might have say 60 days based residency. so there are more ways to fall into tax residency problems - and the fact malta and Cyprus rules say your tax residency in those countries is okay from their perspective (if you stay not more than 183 days in any other country) as others have said that 183 day rule does not apply in an increasing number of countries.

Yes, exactly, very good point.