Copyright © 2013 - 2018. Tai Pan Management Services Ltd., Company Service Provider Licence No. TC004077
Registered in Hong Kong. No 1942748
Tai Pan Management Services
In brief, the scheme offers permanent residence in Cyprus with the added benefit of exempting certain types of income from tax. It is officially known as ‘Category F 6 (2) - Expedited procedure’
The Government of Cyprus (along with a number of other EU countries) wishes to attract high nett worth clients and have created conditions (low taxes etc) to make this attractive.
Subject to, inter alia, the purchase of a qualifying property (at least €300,000 ex VAT), a deposit of €30,000 to a Cyprus bank account (blocked for 3 years) and evidence of sufficient income (€30,000 p.a.); a permanent residence permit is granted.
Following receipt of this, an application to establish non-domiciled status is made.
In summary, certain classes of income (notably interest & dividends) are totally tax-free for non domiciled PRs.
The definition of a ‘non-domiciled’ was amended in 2015 to include anyone who had not been a tax-resident of Cyprus for more than 17 of the last 20 years.
Yes. This scheme mitigates the effects of CRS (Common reporting standard) that requires an increasing number of countries to report the balances held in both personal accounts and corporate accounts.
By changing tax residence to Cyprus (and notifying banks & other financial institutions as soon as possible), the reports will be sent to the Cyprus authorities rather than the country of former residence.
No, although you are welcome to should you wish.
As far as the Cyprus authorities are concerned, it is enough that you are a Tax Resident individual. At the very minimum, you must enter Cyprus once every two years.
Caution: In most countries the tax authorities will consider an individual to be tax resident if he/she resides there for more than 183 days in any financial year (1 Jan - 31 December in many cases). It is therefore important not to reside in any other single country for lengthy periods. It is also important to create as much evidence as possible of your Cyprus residency (e.g. Accommodation, bank Statements, mobile ‘phone etc. in your name) whilst minimising your “footprint” in any other country where you spend time.
Yes, you will need to purchase a qualifying property in Cyprus.
In essence this must be a new (not resale) property costing at least €300,000 (excluding VAT).
€30,000 must be deposited from outside Cyprus to a Cyprus bank account, and must be maintained for 3 years.
Evidence of Income
The applicant must show evidence of an annual income of at least €30,000 p.a., with a further €8,000 for each dependent included within the application.
In summary, everything you will need!
As each element of the non-dom residency has certain requirements that must be undertaken in sequential order, we are pleased to be able to offer a complete package. This consists of the following elements carried out in the order given:
Advice on the way to structure your residency.
Acquisition of a suitable property.
Opening of a personal bank account for the deposit of the required €30,000.
Connection of necessary utilities.
Application for Cyprus permanent residency.
Application for a Cyprus Tax number (TIN).
Application for non-domiciled status.
Once the house/flat has been purchased, i.e. the sale contract signed and filed at the Land Registry, the entire process should not exceed three months.
Our inclusive fee (including our lawyer’s costs) is €7,500
Property purchase costs including the various government fees are usually around 10% of the purchase price depending on both price, and whether the property is in a single name or joint names.
If you need to establish a company (from which to pay dividends), we can assist with you this.
We can also assist you with finding an appropriate property and help you manage it if you so require.
For further information, please use our contact form to outline your requirements and ask any questions.