Has anyone moved tax residence from Cyprus to UAE?

[heliotrope]

Has anyone moved tax residence from Cyprus to Dubai?

As per the title of the thread. Just interested in first-hand experience of this process, how much hassle the tax office in Cyprus may have caused/how much proof they asked for of a genuine move, and whether you stayed in the UAE for six months to make sure the transition happened.

 

[Fred]

We have several clients with Cyprus Tax Residence via Yellow Slip and Business/Financial base in Dubai.

Some of them plan to move to Dubai - I keep you posted if we discover any problems from the Cyprus side.

Hint: they are all non-citizens of Cyprus so for now we think that Cyprus won't care at all if they just cancel the Residence there and make the move.

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[kkein]

What's the advantage of moving to UAE, as opposed to staying in cyprus and having the biz in UAE? beyond the saving of the 2.65% contribution on dividends, i mean.

 

[MarkusCostigan]

kkein said:
What's the advantage of moving to UAE, as opposed to staying in cyprus and having the biz in UAE? beyond the saving of the 2.65% contribution on dividends, i mean.
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Super interesting. Where is the problem to keep Cyprus non-dom residence with UAE personal residence + company? With several Cipro --> UAE trips during the year?

 

[Fred]

kkein said:
What's the advantage of moving to UAE, as opposed to staying in cyprus and having the biz in UAE? beyond the saving of the 2.65% contribution on dividends, i mean.
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Talking Company side of things:

No Audit or Bookkeeping is a major reason we have seen from clients.

Crypto, Forex Trading, Day Trader etc.

Diversification of having a structure outside the EU and all in all less bureaucracy.

On the Personal Income side there is in the UAE no Tax - 0% Tax at all while you are juming loops on Cyprus which is working as long as it's no longer working.

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[kkein]

Fred said:
Talking Company side of things:

No Audit or Bookkeeping is a major reason we have seen from clients.

Crypto, Forex Trading, Day Trader etc.

Diversification of having a structure outside the EU and all in all less bureaucracy.

On the Personal Income side there is in the UAE no Tax - 0% Tax at all while you are juming loops on Cyprus which is working as long as it's no longer working.
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Thanks for the clarification.
Can I ask a semi-OT question here: what costs are to be expected, for establishment and maintenance, of a free zone company in the emirates, including banking (as i assume no TW or trendy EMIs possible over there)?

 

[Fred]

ca. 8000 EUR Setup and 4000-5000 EUR yearly running costs depending on the substance you want to have in place.

Banking is somewhere between 0-50$ per month and 10-20$ per Wire Transfer.

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[Houdini]

Fred said:
No Audit or Bookkeeping is a major reason we have seen from clients.
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Does that apply for all foreigners owning a Dubai company?

We can't avoid CRS this way because the bank is reporting right?

 

[Fred]

I'mRobot said:
Does that apply for all foreigners owning a Dubai company?

We can't avoid CRS this way because the bank is reporting right?
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Due to the fact at least we approach the Banks only once your Emirates ID, Residence Visa and local UAE phone no. is in place as well as local substance is setup - no CRS reporting happens from the UAE Bank side as they have no obligation to do so - it's a 100% resident case.

To keep this you are required to be twice per year for 1 day in the UAE.

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[algotrader]

Fred said:
To keep this you are required to be twice per year for 1 day in the UAE.
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Does this requirement also apply to those having a long-term visa and is it possible to get such a long-term visa by founding a company with more than 500k AED in capital?

https://invest.dubai.ae/visas-and-residency

 

[Fred]

algotrader said:
Does this requirement also apply to those having a long-term visa and is it possible to get such a long-term visa by founding a company with more than 500k AED in capital?

https://invest.dubai.ae/visas-and-residency
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No clear guidance - we see in practice clients coming once a year and are fine however official requirement is twice a year.

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