Would this set-up trigger tax residency (in Southern European country)?

[JohnnyDoe]

This is definitely playing with fire.

Enough said

Do you have a source for the claim that Spain doesn't consider people who are resident in Cyprus as non-resident if they claim the non-domicile exemption? It's the second time I hear about it and when I've checked it with lawyers in the alleged countries where this is the case, none have been able to confirm it.

What you're saying is that you can spend 365 days per year in Cyprus, claim non-domicile exemption, and still be taxed as if resident in Spain. From the lawyers I've spoken with, that isn't the case.

it’s the old common law concept of “domicile” that doesn’t reconcile with civil law “residence”, and leaves the door open to a number of interpretations. Which will always be favorable to the taxman, you betcha.
Anyway a non dom is supposed (in common law) not to have the intention to reside permanently in the host country, and that is enough to cause troubles.

Sorry it is an oversimplified explanation, there are many articles and case law out there that analyze all the details, it’s complex stuff and dangerous too. Better to play it safe.

 

[Marzio]

you can be tax resident in Cyprus by only spending 60 days per year there and not be tax resident anywhere else

Yes i meant this, thanks for correcting me.

 

[Enrique123]

Enough said

it’s the old common law concept of “domicile” that doesn’t reconcile with civil law “residence”, and leaves the door open to a number of interpretations. Which will always be favorable to the taxman, you betcha.
Anyway a non dom is supposed (in common law) not to have the intention to reside permanently in the host country, and that is enough to cause troubles.

Sorry it is an oversimplified explanation, there are many articles and case law out there that analyze all the details, it’s complex stuff and dangerous too. Better to play it safe.

Thanks JohnnyDoe for your perspective on this - point taken.

Without necessarily going tinto great detail, what would your suggestion be to play it safe?

 

[JohnnyDoe]

Thanks JohnnyDoe for your perspective on this - point taken.

Without necessarily going tinto great detail, what would your suggestion be to play it safe?

Either become domiciled in Cyprus or move your residence somewhere else, possibly in a territorial tax country or even better in a zero tax country. Of course you will need to establish a real presence there. Being Spanish, I would suggest the Dominican Republic.

 

[Enrique123]

Either become domiciled in Cyprus or move your residence somewhere else, possibly in a territorial tax country or even better in a zero tax country. Of course you will need to establish a real presence there. Being Spanish, I would suggest the Dominican Republic.

Thanks JohnnyDee - all this is new info which I will most certainly explore in detail.

In terms of say the Dominican Republic: would you be knowing what the minimum time required to spend there is per year?

Either become domiciled in Cyprus or move your residence somewhere else, possibly in a territorial tax country or even better in a zero tax country. Of course you will need to establish a real presence there. Being Spanish, I would suggest the Dominican Republic.

apols - just read its 182 days

 

[JohnnyDoe]

Thanks JohnnyDee - all this is new info which I will most certainly explore in detail.

In terms of say the Dominican Republic: would you be knowing what the minimum time required to spend there is per year?



apols - just read its 182 days

There is no minimum stay requirement to keep your residency.

 

[Enrique123]

There is no minimum stay requirement to keep your residency.

If this is truly the case then it seems like a no-brainer?

 

[JohnnyDoe]

If this is truly the case then it seems like a no-brainer?

Yes and with a small budget (way smaller than for Cyprus) you can establish a real substance. If you want to do some serious stuff, remember there are also free zones. Just be careful with “fixers” who are just scammers, for good local contacts PM me. They are worth the small extra fees.

 

[Marzio]

There is no minimum stay requirement to keep your residency.

According to PwC you are resident if you spend 182+ days in DR.

 

[Enrique123]

According to PwC you are resident if you spend 182+ days in DR.

Yes - this is what I read. Unsure where JohnnyDee is getting the no minimum stay requirement

 

[Marzio]

Unsure where JohnnyDee is getting the no minimum stay requirement

Maybe he refers to some kind of visa

 

[JohnnyDoe]

Yes - this is what I read. Unsure where JohnnyDee is getting the no minimum stay requirement

I’m positive there is no minimum stay requirement, no worries. Once you get your residence permit it’s easy to renew and nobody checks how long you stayed.

According to PwC you are resident if you spend 182+ days in DR.

This is the standard basic rule in any country. I am talking of legal residence, which means having a title to reside, not of a minimum stay for retaining the permit, which doesn’t exist.

 

[Vor]

The only thing I know about Spain is that their tax office is a nightmare so I would make sure you are doing this properly lol sorry im of no help

 

[Marzio]

Once you get your residence permit

Are you talking about getting residence permit through rentista visa or investor visa? Do you have experience with those?

 

[JohnnyDoe]

Are you talking about getting residence permit through rentista visa or investor visa? Do you have experience with those?

Yes but you an also get a normal residence permit.

 

[Marzio]

you an also get a normal residence permit

Without presence required?

 

[JohnnyDoe]

Without presence required?

Yes. Of course you need to be physically present for the submission of the papers and then for the pickup of the permit.

 

[Ads911]

Hey there

I currently relocated to Cyprus under the Non-Dom program, but wanted to assure that I don't trigger tax residency in my home country in southern Europe.

An overview:

* Ive planned so that I spend more than 60 days in Cyprus and significantly less than 183 days in my home country
* I own a property in my home country but have rented it out (and am delcaring the rent and paying tax)
* I dont rent any other place in my home country
* I use any credit/debit card in my home country
* I am not married and don't have any children
* I am a 50% shareholder of a company in my home country (not involved in the management)
* I have a credit card from this company which I use regularly for flight/hotel bookings (but not locally in my home country)
* I travel regularly and book airbnbs to justify stays in Asia and Europe (spending no more than 183 days in any)

I have tried to do as much research as possible, and unless I am missing something this set-up should ensure that I am not considered a tax resident in my home country.

Does anyone have any thoughts?

Thanks!

I am Italian, and I am planning to relocate to Cyprus, too; I don't know Spanish laws about tax residency, but I assume they are similar to the Italian ones.

In Italy, your situation wouldn't be considered that solid if the taxman would come after you, and not because of your non-dom Cyprus residency (because it's a residency if you do things properly, it's absolutely false that civil law countries don't consider it as FISCAL RESIDENCY) but mainly for all the other factors, especially 50% shareholders of a company, if you add that you own a house and you own and use credit cards your situation can easily trigger fiscal residency.

But most importantly, what is your main business activity with the Cypriot company? because if your activity involves clients and relationships with Spain, you are 100% tax resident in Spain at that point, without any doubt.

anyway, for the guy who keeps saying that non-dom Cyprus residency it's not valid for civil law countries, you are basically telling us that Cyprus created an illegal regulation, and 100% of the ex-pat community who has that residency is basically breaking the law, Do you think people in Cyprus are stupid and didn't acknowledge what you are telling us?

If your ties with your native country are effectively cut by definition, and you have a non-dom residency in Cyprus, there is NO WAY the tax man can claim that you have to pay taxes in Spain.

I would suggest you talk to a good tax planner, and you should consider giving up your participation in the Spanish company.

 

[JohnnyDoe]

I am Italian, and I am planning to relocate to Cyprus, too; I don't know Spanish laws about tax residency, but I assume they are similar to the Italian ones.

In Italy, your situation wouldn't be considered that solid if the taxman would come after you, and not because of your non-dom Cyprus residency (because it's a residency if you do things properly, it's absolutely false that civil law countries don't consider it as FISCAL RESIDENCY) but mainly for all the other factors, especially 50% shareholders of a company, if you add that you own a house and you own and use credit cards your situation can easily trigger fiscal residency.

But most importantly, what is your main business activity with the Cypriot company? because if your activity involves clients and relationships with Spain, you are 100% tax resident in Spain at that point, without any doubt.

anyway, for the guy who keeps saying that non-dom Cyprus residency it's not valid for civil law countries, you are basically telling us that Cyprus created an illegal regulation, and 100% of the ex-pat community who has that residency is basically breaking the law, Do you think people in Cyprus are stupid and didn't acknowledge what you are telling us?

If your ties with your native country are effectively cut by definition, and you have a non-dom residency in Cyprus, there is NO WAY the tax man can claim that you have to pay taxes in Spain.

I would suggest you talk to a good tax planner, and you should consider giving up your participation in the Spanish company.

What I wrote about Spain applies in the same way to Italy. Read better what I wrote about the concept of domicile.
If you don’t agree and feel lucky, then good luck with GdF and your local Procura

 

[Ads911]

What I wrote about Spain applies in the same way to Italy. Read better what I wrote about the concept of domicile.
If you don’t agree and feel lucky, then good luck with GdF and your local Procura

I prefer to take advice from a professional tax planner and look at facts; that from random people on the internet. I will ask you again, so every person that is a non-dom Cyprus resident and he comes from a civil law country is basically a tax evader?

Cypriot authorities are so stupid that didn't realize what you claim?

Again if you, by definition, cut your ties from your home country( it's not the case for this Spanish guy who posted this) and you are not tax resident there (by the law), and you have Fiscal residency in Cyprus, no court can tell you that you have to pay taxes there.

People ask you about a legitimate source for your claims; you didn't provide anything, just "trust me, bro" ‍