Real Client Enquiry: Nominee Director / Shareholder for the Cyprus Company - Do we need one? Standard Admin / Monday, March 25, 2024 0 21 Article rating: No rating Read more
Real Client Expenses: Cyprus Company Expenditure - Reclassification what is allowable and what is not Standard Admin / Monday, March 25, 2024 0 18 Article rating: No rating Read more
Real Enquiry: I’m looking to setup as a non-dom in Cyprus and will have Cryptos Gains - how will i be taxed? One of the main reasons I’m interested in the Cyprus non-dom status is if I can cash out/ sell my crypto assets to €’s which I have been holding for several years. Standard Admin / Monday, March 25, 2024 0 28 Article rating: No rating Hi, I’m looking to setup as a non-dom in Cyprus. My income comes from a UK Ltd company which is around £50,000-£100,000 per year. My tax residency is currently Spain, but I want to leave the country. One of the main reasons I’m interested in the Cyprus non-dom status is if I can cash out/ sell my crypto assets to €’s which I have been holding for several years. I realise for the non-dom status I would need to spend 60 days within the country per year and rent or purchase a property. My question is would the crypto profits be taxed at 0%? I keep reading conflicting things on different lawyer websites. How much are you fees for this setup? And annual accounting? Thank you Read more
Trading in Cyprus. Easy? Complicated? Trading in Cyprus. Easy? Complicated? Kyriakos Tramountanellis x / Tuesday, August 30, 2022 0 102 Article rating: No rating Doing business in Cyprus is pretty easy and straightforward. Unless you are dealing with any of the below industries no operating licensing is required: Read more
Learn how to Read your Financial Statements Learn how to Read your Financial Statements Kyriakos Tramountanellis x / Wednesday, August 17, 2022 0 95 Article rating: No rating Read more
Tax Free Dividends - Cyprus Companies Share Written By Kyriakos Tramountanellis Tags avoidcontrolCypruscyprus companiesdirectordirectorshipdividend taxdividend taxationdomiciledfree dividendslimitedlimited companiesmanagementnon domownerresidentshareholderspecial defence taxtaxestaxfree 2022-01-04 Yes, you have heard it right. You can enjoy tax free dividends owing directly a Cyprus company in the following two cases: 1. Management and Control is exercised in a tax free jurisdiction A main principal for the taxation of Cyprus companies is the management and control rule. This tax law stipulates that the place management and control is exercised, it defines the tax jurisdiction of the company and the place the company will be taxed. Consequently all Cyprus companies must be managed and controlled by local directors only or by majority of local directors (in the event an overseas / investor / shareholders wants to participate in the composition of the board) to be taxed at the Cyprus Corporation Rate of 12.5%. Therefore, a Cyprus company managed by an overseas individual (this person is a director on the company), effectively manages and control the Cyprus company at his / her place of tax residency. If the place of tax residency is a tax free zone or jurisdiction like Dubai or BVi then this Cyprus company even though established / created in Cyprus it will not be paying any taxes in Cyprus as its management and control is outside Cyprus. 2. Shareholders of Cyprus companies who are Cyprus Tax Residents but non domiciled or are tax residents overseas Dividends paid by Cyprus companies to its shareholders are tax free at the company level and are taxed at the personal level by the Cyprus dividend tax (which is called special defence tax). This tax does not apply if the shareholders of the Cyprus company are Cyprus Tax Residents but are not domiciled in Cyprus (see related articles for the non dom tax status). In fact all their worldwide income will be tax free at the Cyprus level (some overseas jurisdictions may deduct dividend taxes at source; when dividends are paid). On the other hand, in the event the shareholders of Cyprus companies are overseas tax residents they will be subject to overseas tax at their place of tax residency only. The Cyprus company will pay them dividends free of tax and when reported in their personal tax returns maybe subject to local dividend taxes, again at personal level. In Summary: Shareholders of Cyprus Companies are taxed depending on their tax status as follows: - Cyprus Tax Residents, Non Domiciled in Cyprus —-> Worldwide Tax Free Dividends - Overseas Tax Residents —-> Subject to dividend tax in their country of tax residency - Cyprus Tax Residents, domiciled in Cyprus (i.e Cypriots) ---> Are taxed by the dividend tax (special defense tax) at the enforcable rate at the time of the dividend payout. Want to know more about Cyprus Taxes and possibly relocating to Cyprus? See how salaries, dividends, corproratino tax is calculated using our Cyprus Tax Calculators Watch our Youtube Channel with Cyprus Corporate and Tax Tips and playlist exclusivly for relocation material Read all there is to know on this section of our website Contact us and we will be more than happy to assist you Thank you, Kyriakos