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Cyprus company 0% tax on foreign income question?

#42
my question is... why is cyprus considered such a strong tax haven?

I don't see the major perks exactly. 12.5%... is good, but not great, with better options even in the EU, and certainly much stronger options worldwide.

I don't see what the hype is with cyprus exactly? What's the major reasons so many choose apparently it?

It has it's own category section on this website -- why?

Sorry if missing something obvious, I'm new to researching cyprus.
 
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#43
Kakarot said:
my question is... why is cyprus considered such a strong tax haven?

I don't see the major perks exactly. 12.5%... is good, but not great, with better options even in the EU, and certainly much stronger options worldwide.

I don't see what the hype is with cyprus exactly? What's the major reasons so many choose apparently it?

It has it's own category section on this website -- why?

Sorry if missing something obvious, I'm new to researching cyprus.
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Just to clarify Cyprus is not a tax haven. And that’s exactly what is attractive. Tax havens are generally black listed, Cyprus has a number of tax incentives but at the same time does not hold the risks of tax haven jurisdictions.

The 12.5% can be reduced even more depending on your activities, for example, tech companies falling under the IP Box regime pay an effective tax rate of 2.5%.

Further to this, there is no tax/sdc on dividend, and especially if you relocate in Cyprus you will continue to be considered a non-dom for 17 years and be sdc/tax exempt in dividend payments. These are just a couple of the several tax incentives provided in Cyprus.
 
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#44
So if i operate a general trading company in cyprus -- I can simply call all my company's profits dividends right? And pay them out to me the principle shareholder as a dividend payment.

And then I'm essentially paying 0% corporate tax... and 2.65% personal income tax.... And i just need to lease an apartment there year round... and stay there a total of 60 days per year to be tax resident right?

And bank accounts are ok to open in cyrprus for my company? Banks are friendly?

So I'd be enjoying 2.65% overall tax with this structure? And as long as I don't stay more than 183 days in any other country each year I will only be tax resident in cyprus, correct?
 
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#45
Kakarot said:
So if i operate a general trading company in cyprus -- I can simply call all my company's profits dividends right? And pay them out to me the principle shareholder as a dividend payment.

And then I'm essentially paying 0% corporate tax... and 2.65% personal income tax.... And i just need to lease an apartment there year round... and stay there a total of 60 days per year to be tax resident right?
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No, the company has to pay 12.50%. You pay yourself dividends on your cash reserves, which is how much the company has in the bank minus liabilities (such as costs and taxes).

Kakarot said:
And bank accounts are ok to open in cyrprus for my company? Banks are friendly?
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Banks are not friendly but if you're resident and not engaged in anything they don't like (crypto, gambling, adult), you should be able to open an account with Bank of Cyprus, Hellenic, or Alpha.
 
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#46
darn, so there's no way to escape that 12.5% corporate tax bite in cyprus?

So then cyprus isn't great for a business owner doing trading.

It's great more for stock brokers, passive income shareholders maybe, and capital gains?

But for an active trading company selling products from china to USA -- I cannot avoid the 12.5% corporate tax rate no matter how I structure it?
 
#47
Kakarot said:
But for an active trading company selling products from china to USA -- I cannot avoid the 12.5% corporate tax rate no matter how I structure it?
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Wonder if it would be possible to obtain non domicile status for this company in Cyprus if the UBO also not live there, so it will be 0% tax if that has not changed?
 
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#49
Loizos said:
OK lets clarify things. The 17 % is not income tax but SDC (another tax). Now if a person is tax resident in Cyprus is liable to SDC on dividend income EXCEPT if he gets a Non-Domiciled status. This is easy to get for a Non-Cypriot person. This is done by the republic of Cyprus to attract foreigners with high net worth lets say. If you get the Non-Domiciled status then you are not taxed on dividends.

Since July 2015, non-Cyprus domiciles do not have to pay defence tax. Generally, you will be considered Cyprus-domiciled if you were born here or you have been resident for 17 out of the last 20 years. Most UK expatriates therefore escape tax on interest and dividends for their first 17 years of residence.
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Hi Loizos - can you please PM me - I don't have paid membership
 
#50
CyprusLaw said:
You can ask someone to PM you - you can then reply to PMs - you just can't send a PM first.
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Can you send me a PM? I have a similar case:
- non-EU citizen
- living in Cyprus under non-dom status
- own a Cypriot company
- client in the US
* however, Cypriot government wants to see at least 24k come to me personally from outside of Cyprus to renew pink slip, so considering opening an offshore company and I'l like your advice, please!
 
#53
JosephLL said:
@CyprusLaw Would you please elaborate on this :

What constitutes a "tech company" and what exactly is "ip box regime"?
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Each case is assessed on its merits - legal advice should be sought to determine the applicability of this. Generally, it applies to qualified income deriving from the exploitation of qualifying IP assets. This usually is royalties deriving from the licensing of software - this is the most common example. Happy to PM you to discuss this in detail
 
#55
bandanna said:
Totally off-topic, but a lot or Cyprus info here! Any recommendations on a service to help incorporating in Cyprus, and get a nominee director?
Click to expand...
Nobody dares to promote their firm publicly here but feel free to PM.
 
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