Cyprus non dom + offshore company, most tax efficient setup?

[bubbledouble]

If it wasn't so damn difficult to get a BVI company I would have setup one straight - but the documents required, KYC etc. is way too much.

 

[Hydrox]

Let´s talk numbers here.

So if i read everything correctly you need the cyprus non dom = 0% dividend tax.

Then you need an Offshore Corp (Seychelles f.ex) with preferably substance, which you can buy in this country relatviely cheap. A nominee director for 1.5 - 2k a year should be enough to look like you have substance.

Then you can be shareholder of that seychelles company and pay yourself 0% tax dividends to cyprus.

Cost for that = around 7k for cyprus limited for incorporation and accounting fees for a year
Cost for seychelles with nominee = 3k.

So for around 10k you should be set and relatively legal right?

Can seychelles companies pay out dividends without problems to EU banks?

 

[dziter]

should be enough to look like you have substance.

It depends for which country, I will be surprised for the long run.

yourself 0% tax dividends to cyprus.

If you are not managing the company in Cyprus and it is deemed non-resident, it might be possible on CY side. Then, it also depends of shareholder tax residency.

around 7k for cyprus limited for incorporation and accounting fees for a year

Might even be less.

Can seychelles companies pay out dividends without problems to EU banks?

Also, if you are dealing with EU companies, some of them might not like to deal with a Seychelles company.

Let's see other replies.

 

[JustAnotherNomad]

Then you can be shareholder of that seychelles company and pay yourself 0% tax dividends to cyprus.

Cost for that = around 7k for cyprus limited for incorporation and accounting fees for a year

Why would you need a company in Cyprus if you already have one in the Seychelles?

 

[Hydrox]

Why would you need a company in Cyprus if you already have one in the Seychelles?

To get the non dom status there and a residency. I want residency and tax status somewhere since it's a gray zone to be without one after emigrating from germany.

 

[JustAnotherNomad]

Why would you need a company for that? I always thought you could just go and live there as an EU citizen.

 

[Hydrox]

Why would you need a company for that? I always thought you could just go and live there as an EU citizen.

For getting the non-dom status you would need the cyprus company / be employed there. If you just live there you get bad taxes

 

[Sols]

For getting the non-dom status you would need the cyprus company / be employed there. If you just live there you get bad taxes

This is not correct. You are non-domicile if you weren't born in Cyprus and/or haven't lived in Cyprus for the last 17 years. It has nothing to do with whether you have a company. The two are unrelated.

 

[ChadMuska]

The only difference is that if you have a Cyprus company is that you have the 60 days rule. Without a company, you have to stay there 183 days to be a tax resident

 

[JustAnotherNomad]

Thank you Sols for clearing that up. I would have been really surprised if you needed the company.

The only difference is that if you have a Cyprus company is that you have the 60 days rule. Without a company, you have to stay there 183 days to be a tax resident

I doubt that that's true. But I'm sure it's something service providers will tell you...

 

[Marzio]

I doubt that that's true.

It is: https://taxsummaries.pwc.com/cyprus/individual/residence

 

[Sols]

I doubt that that's true. But I'm sure it's something service providers will tell you...

100%.

There are arguments for why having a company can be advantageous (non-dom and/or 60-day). But what these service providers "forget" to tell you is that it also happens to be lucrative for them and not strictly necessary. Package deals become truisms.

 

[Hydrox]

100%.

There are arguments for why having a company can be advantageous (non-dom and/or 60-day). But what these service providers "forget" to tell you is that it also happens to be lucrative for them and not strictly necessary. Package deals become truisms.

To get the 60 day rule the company or any other form of employment in cyprus is necessary right? So they are not lying, since most want to take advantage of the 60 day rule

 

[daniels27]

To get the 60 day rule the company or any other form of employment in cyprus is necessary right? So they are not lying, since most want to take advantage of the 60 day rule

Exactly, you can also hire up locally as a barista to enjoy easy access to the 60-day-rule (and 60+ girls).

 

[CyprusLaw]

Thank you Sols for clearing that up. I would have been really surprised if you needed the company.



I doubt that that's true. But I'm sure it's something service providers will tell you...

The requirements for the 60 day rule are the following:

• the individual stays in Cyprus for at least 60 days in the tax year,
• exercises a business and/or is employed in Cyprus and/or holds an office with a Cyprus tax resident company at any time during the tax year,
• maintains (by owning or leasing) a permanent home in Cyprus.

So you need to run a company as self employed or be employed under another business or be a director in a Cyprus company. Service providers are not lying to you, these are the requirements, bearing also in mind that if you are non-EU then unless you have a work permit under a tech company for example you are not allowed to be employed/self employed, so the only solution is having a company and be a director in that company.

 

[daniels27]

The requirements for the 60 day rule are the following:

• the individual stays in Cyprus for at least 60 days in the tax year,
• exercises a business and/or is employed in Cyprus and/or holds an office with a Cyprus tax resident company at any time during the tax year,
• maintains (by owning or leasing) a permanent home in Cyprus.

So you need to run a company as self employed or be employed under another business or be a director in a Cyprus company. Service providers are not lying to you, these are the requirements, bearing also in mind that if you are non-EU then unless you have a work permit under a tech company for example you are not allowed to be employed/self employed, so the only solution is having a company and be a director in that company.

Correct. See my post above. You can get hired at CyprusLaw(yer) or any bar and enjoy 60 days while getting some pocket money for brewing coffe and preparing drinks.