Cyprus taxes question

[John Andrews]

This is a probably a stupid question but let's say I have a company in Cyprus (tax resident) and non-dom residency.

The company ends up with 100.000 EUR profit and I want to take it out as I'm the 100% shareholder - how much money will I personally end up with?
I assume this falls under personal income taxes too (not just 12,5% corp tax)?

 

[Sols]

If you are a non-domiciled resident of Cyprus and you own a Cyprus resident company, the company owes 12.50% corporate tax. You can then pay yourself dividends free of tax, meaning you'd end up with 87,500 EUR in your personal bank account if your company made 100,000 EUR net profit.

That's usually how it would work. But speak to a tax adviser to make sure it applies in your case. There may be factors that change this.

 

[John Andrews]

If you are a non-domiciled resident of Cyprus and you own a Cyprus resident company, the company owes 12.50% corporate tax. You can then pay yourself dividends free of tax, meaning you'd end up with 87,500 EUR in your personal bank account if your company made 100,000 EUR net profit.

Beautiful, thank you for your answer

 

[JimBeam]

Can I ask how much did cost you to get non-dom residency?

Did you use an help of an agent/attorney or have you done everything by yourself.

 

[Sols]

If you're an EU citizen, all it costs is the flight there and a place to stay. You should register as a resident, for which you will need to show economic self-sufficiency, usually through a job, a bank statement with a few thousand euro, or starting a business (which in turn can show it has adequate funding).

Like in Malta, the status is automatic and implied. You just claim it when you're filing your taxes every year. But it certainly doesn't hurt to pay a good tax adviser/accountant a few hundred euro to help you out. To the best of my knowledge, there is no Certificate of Non-Domiciliation or anything like that.

If you're a non-EU citizen, you'll have to look into the different residence schemes. You can either fork out a large sum of money, have an employer get you a work permit, or start a business.