Copyright © 2013 - 2018. Tai Pan Management Services Ltd., Reg. No 1942748 Registered in Hong Kong. At 65-67 Bonham Strand East
In essence, the scheme offers the possibility to obtain legal residence in Cyprus whilst being exempted from any tax liability on certain types of income. This scheme is applicable to EEA (EU + some others + Swiss) nationals only. For non-EU Nationals different criteria applies, click here.
Simply, the Government of Cyprus wanted to attract inward investment into the country following the financial crisis of 2013, and realised that the best way of doing so was by reducing or eliminating certain taxes on some types of income.
Tax residents of Cyprus pay income tax on a graduated scale on earned income (whether employed or self employed). Essentially these income taxes remain unchanged.
However, in July 2015, and those accepted as non-domiciled, were exempted from paying tax on certain other classes of income, notably dividends & interest. These types of income are taxed under a schedule known as SDC (Special Defence Contribution).
In effect, certain classes of income (notably interest & dividends) are totally tax-free.
From July 2015, the definition of a ‘non-domiciled’ was defined as 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.
Caution: Tax authorities in most countries will deem an individual to be tax resident if he resides there for more than 183 days in any fiscal year (1 Jan - 31 December in most cases). It is therefore important not to reside in any other single country for more than 6 months in any year. 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.
In practical terms, yes you will need a ‘permanent ‘address in Cyprus.
There are no restrictions as to where you may buy (or rent) and costs are generally low...
Taking Larnaca as an example, flats are available to rent from around €350 per month, and houses from €500.
There are quite reasonable. Again taking Larnaca as an example, houses are available from €200,000 and flats from €125,000.
Larnaca is the main International Airport and is therefore more convenient - Paphos, the other airport, is mostly seasonal holiday flights. Property prices tend to be lower than Limassol , Paphos or Nicosia (the other main population centres). There are motorways connecting Larnaca with both Nicosia and Limassol. Larnaca has a wide range of shopping, tourist activities, beaches and nightlife, both in the town and adjoining areas.
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/address
Opening of a personal bank account
Obtaining a contract mobile connection (with data or basic as preferred).
Application for a Social Insurance Number if required (if employed/self employed within Cyprus)
Application for Cyprus residency
Application for a Cyprus Tax number (TIN)
Application for non-domiciled status.
Our inclusive fee (including our lawyer’s costs) is €4,750
Property rentals normally require 3 months’ rent ‘on signature’, with a one-year minimum contract.
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.