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

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#21
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Sols said:
This is definitely playing with fire.
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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.
 
#23

Thanks JohnnyDoe for your perspective on this - point taken.

Without necessarily going tinto great detail, what would your suggestion be to play it safe?
 
#24
Enrique123 said:
Thanks JohnnyDoe for your perspective on this - point taken.

Without necessarily going tinto great detail, what would your suggestion be to play it safe?
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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.
 
#25

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
 
#26
Enrique123 said:
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
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There is no minimum stay requirement to keep your residency.
 
#28
Enrique123 said:
If this is truly the case then it seems like a no-brainer?
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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.
 
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#32
Enrique123 said:
Yes - this is what I read. Unsure where JohnnyDee is getting the no minimum stay requirement
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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.

marzio said:
According to PwC you are resident if you spend 182+ days in DR.
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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.
 
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#38
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.
 
#39
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
 
#40
JohnnyDoe said:
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
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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" ‍
 
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