02.1 Non-Dom Status in Cyprus

RESIDENCY & NON-DOM STATUS IN CYPRUS (EU)

Cyprus

The Mediterranean island of Cyprus, a full member of the European Union (EU), has been an independent state since 1960. More than three million tourists visit the island every year, attracted by its Mediterranean lifestyle, sunny weather and unique flora and fauna. Cyprus is one of the safest countries in the world, both from a political standpoint and due to the fact that it has one of the lowest crime rates in the world.

The high safety standards, friendly inhabitants and relaxed atmosphere, modern infrastructure, steadily blooming economy and unique, advantageous tax regulations have also attracted many migrants to Cyprus. As a result, the island’s population has increased from 700,000 to 1,000,000 since 2013.
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ECONOMIC BENEFITS AND TAXES IN CYPRUS

Cyprus offers immigrants a wide range of exemptions regarding taxes on personal income. The prerequisites to make use of these exemptions are the relocation of the tax residence to the EU member state of Cyprus and the filing of an application for the so-called Non Dom status.
Tax-Freedom in Detail

Interest and investment results gained abroad are not subject to taxation in Cyprus. This applies both to private persons in Cyprus with Non Dom status, and companies registered in Cyprus (Cyprus Limited, Cyprus Holding, etc.), the latter under certain conditions.
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Whereas the “old“ countries running Non Dom programs only guaranteed the legal regulations applying to the Non Dom status until these were “recalled“, Cyprus guarantees all benefits arising from its Non Dom Program for 17 years. This means great security in long-term planning for persons with the Non Dom status. Today, the entire world is constantly subject to changes in tax regulations. The 17 year guarantee is another great pro for Cyprus.

Cyprus has adjusted its tax regulations to the modern world of business. By dispensing with the European 183 day regulation, it has especially opened its doors to entrepreneurs looking for maximal flexibility.

The legal relocation of the tax residence and several of the benefits enjoyed with the Non Dom status, are already available to persons spending only 60 days per year in Cyprus. This applies regardless of whether the person has spent this minimum of 60 days in Cyprus as a single period or through several visits.

This simplified overview shows how the tax residence in Cyprus can be maintained in the long-term:

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One of the most significant advantages of the Non Dom status in Cyprus is that the country foregoes all Remittance Base taxation. Cyprus‘ tax law does not impose taxes on any dividends coming in from abroad. This means that capital earnings can be freely moved, held and distributed internationally. Tax-free!

See just how detrimental Remittance Base taxation in other countries can be via the following link:

Tax-Freedom with no Remittance Base Taxation

Cyprus does not release tax and bank account information to other countries, provided you have your tax residence exclusively in Cyprus.
The Reasons behind this

According to standard international criteria, Cyprus is not a tax haven per se.
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Cyprus offers the corporations based in Cyprus, specifically Cyprus Limited Liability Companies, significant advantages regarding taxes and duties. The corporate tax in Cyprus for corporations is only 12.5% and the tax for income from licences, IP and similar turnover is only 2.5%.

In addition, payments to offshore companies are tax deductible for Cyprus companies as business expenses.

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RESIDENCY: NON-DOM STATUS

OPTION A:
Cyprus Company Set-Up COMPANY FOR INTERNATIONAL BUSINESS with Non-Dom Status
1 Person
OPTION B:
Simply Non-Dom BUSINESS REGISTRATION FOR NATIONAL SOLE TRADERS
1 Person
OPTION C:
FINANCIALLY INDEPENDENT PERSONS (Note 2)*
1 Person
Original Passport (Proof of Identification). Valid for at least 6 months
Certificate of Employment (signed and stamped by the employer no more than one week before the appointment). not applicable not applicable
Proof of Payment of the Insurance Contributions for the last 2 months, if not Certificate of Employment can be provided. required required not required
Application Fee 20,00 Euro (in cash and exactly) required required required
Proof of a valid Health Insurance (in- and out-patient treatment). Options:
  1. S1 Form/ E121 Form
  2. E106 Form
  3. Cyprus Hospital Card (pink Card)
  4. Private Health Insurance
If the Health Insurance Provider is in another country, the Health Insurance Agreement must be provided. It must be shown that the existing Health Insurance covers both in- and out-patient treatment costs.
not required not required required
Rental Agreement or Title Deeds (in case of ownership) required required required
As Proof of Income, bank account statements from the last 6 months must be provided. The bank account states must be certified by the relevant bank. not required not required required
Minimum stay per year 60+ Days 60+ Days 183+ Days

NOTES:

Note 1: A Cyprus mobile phone is required -
PAY AS YOU GO
A Cyprus mobile phone is required -
PAY AS YOU GO
A Cyprus mobile phone is required -
PAY AS YOU GO
Note 2:
  • The applicant has previously conducted the business activities which he wishes to register in Cyprus. Proof of these prior business activities can be submitted in the form of trade licenses, evidence of existing customer relations and similar documentation.
  • Other prerequisites include a short CV and relevant proof of qualification for the business activities to be carried out in Cyprus.
  • Furthermore, the application requires the submission of consumption bills, consisting at a minimum of water and electricity bills. The utility bills must be in the name of the applicant and be addressed to his current address in Cyprus.
* If the Applicant is the owner of, for example, a Foreign or Offshore Company, he/she must also provide documentation of the respective monthly profits, by providing the bank account statements from the private account of the Applicant (minimum monthly income c. 2,500.00 Euros - proof of the last 3 to 6 months).

Services and Fees:

Cyprus Impressions
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