Dividend Distribution - best process?

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marble123

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Dec 17, 2022
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Hi there,

I am currently a fiscal resident in Cyprus with the +60 day rule (moved out of Spain in late 2021 and, touch wood, think have been following the correct steps in doing this).

I am looking to pay myself a dividend from my wholly-owned Portugal company, but would like to hear opinions on the best way of doing this:

One option is to transfer to my Wise/Revolut accounts - I am certain, however, that these have already been "linked" with my Spanish bank account. Would this pose a problem?

The second option is to transfer to my recently-created account with a banking institution from Cyprus.

And the third option, which probably makes the least sense, is to transfer to my Spanish bank account.

Any thoughts welcome.

Thanks!
 
You need to make clear if this is a tax question or not. Otherwise pay wherever you feel comfortable.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.
 
Martin Everson said:
Martin Everson said:
You need to make clear if this is a tax question or not. Otherwise pay wherever you feel comfortable.
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Hi Martin - thanks for the reply.

Yes - the concern here is tax (even though I have been cautious with the structure & change of residence, I would like to minimise the risk of spanish hacienda poking their nose on things).

JohnnyDoe said:
JohnnyDoe said:
Why don't you pay the dividends as crypto?
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Hi - thanks for jumping in. Not a bad idea at all.

Excuse my ignorance, but what would be the process to achieve this?

Would the company need to purchase crypto and then transfer it to my personal wallet? Or should the company transfer the Euros to my crypto exchange account?
 
marble123 said:
marble123 said:
Yes - the concern here is tax (even though I have been cautious with the structure & change of residence, I would like to minimise the risk of spanish hacienda poking their nose on things).
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The fear is probably unfounded (if you have your residence sorted correctly, and assuming there are no aggravating circumstances). However, there is no harm in paying the dividends out to a bank account that you have opened after leaving Spain, so go for that if it makes you more comfortable.

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This is the probably the answer to your question.
 
Update your Wise address, then pay them to your Wise account. I would apply for a Tax Residency Certificate here in Cyprus. I was asked by Spain last year for proof I was living in Cyprus and the TRC was fine.
 
luap said:
luap said:
Update your Wise address, then pay them to your Wise account. I would apply for a Tax Residency Certificate here in Cyprus. I was asked by Spain last year for proof I was living in Cyprus and the TRC was fine.
Click to expand...
Click to expand...

Thanks - have updated the Wise address and in two minds whether to transfer to Wise or to the Cypriot bank. Maybe its wise (pun intended) to send to the Cypriot bank since they have CRS data of my tax number in Cyprus?

Regarding TRC - absolutely. Have obtained this without any issues after providing flight tickets to show +60 days in Cyprus and -180 days in any other country

Sols said:
Sols said:
The fear is probably unfounded (if you have your residence sorted correctly, and assuming there are no aggravating circumstances). However, there is no harm in paying the dividends out to a bank account that you have opened after leaving Spain, so go for that if it makes you more comfortable.
Click to expand...
Click to expand...

Thanks!
 
marble123 said:
marble123 said:
Thanks - have updated the Wise address and in two minds whether to transfer to Wise or to the Cypriot bank. Maybe its wise (pun intended) to send to the Cypriot bank since they have CRS data of my tax number in Cyprus?
Click to expand...
Click to expand...

Did you just update your Wise address now or you did it last year? Always best to use a fresh account that does not have history of your Spanish address anyway to prevent split year CRS reporting to old and new address which occurs if you change address mid reporting year.

Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.
 
Martin Everson said:
Martin Everson said:
Did you just update your Wise address now or you did it last year? Always best to use a fresh account that does not have history of your Spanish address anyway to prevent split year CRS reporting to old and new address which occurs if you change address mid reporting year.
Click to expand...
Click to expand...

I just updated it in the last couple of weeks - given this is the case perhaps its best to get the dividend paid to the Cypriot account? Or best to open a new account in Wise and transfer there?
 
marble123 said:
marble123 said:
I just updated it in the last couple of weeks - given this is the case perhaps its best to get the dividend paid to the Cypriot account? Or best to open a new account in Wise and transfer there?
Click to expand...
Click to expand...

To keep it simple get it paid to any new account with no history of Spain address on it.

Toggle signature
Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.
 
marble123 said:
marble123 said:
Hi there,

I am currently a fiscal resident in Cyprus with the +60 day rule (moved out of Spain in late 2021 and, touch wood, think have been following the correct steps in doing this).

I am looking to pay myself a dividend from my wholly-owned Portugal company, but would like to hear opinions on the best way of doing this:

One option is to transfer to my Wise/Revolut accounts - I am certain, however, that these have already been "linked" with my Spanish bank account. Would this pose a problem?

The second option is to transfer to my recently-created account with a banking institution from Cyprus.

And the third option, which probably makes the least sense, is to transfer to my Spanish bank account.

Any thoughts welcome.

Thanks!
Click to expand...
Click to expand...

Hello, quick question for the OP - how was the process of getting out of Spain (to stop being tax resident) there? You moved first to Portugal or to Cyprus?
 
tylerdurden90 said:
tylerdurden90 said:
Hello, quick question for the OP - how was the process of getting out of Spain (to stop being tax resident) there? You moved first to Portugal or to Cyprus?
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Click to expand...

First step was to ensure I cut most ties with Spain - in my case I have no spouse/children, I was ready to spend significantly less than 183 days in Spain and I rented out my flat in Spain.

I then liaised with an advisor in Cyprus to move ahead with the company creation process and non-dom application, then rented a flat + utility bills, etc.
 
luap said:
luap said:
Update your Wise address, then pay them to your Wise account. I would apply for a Tax Residency Certificate here in Cyprus. I was asked by Spain last year for proof I was living in Cyprus and the TRC was fine.
Click to expand...
Click to expand...

Was Spain sufficiently satisfied with the tax certificate or did you have to submit further evidence (flight tickets, length of stay, electricity consumption, rental agreement, etc.)?

I ask because it is often said that a tax certificate is usually not enough for proof...
 
uncreative said:
uncreative said:
Was Spain sufficiently satisfied with the tax certificate or did you have to submit further evidence (flight tickets, length of stay, electricity consumption, rental agreement, etc.)?

I ask because it is often said that a tax certificate is usually not enough for proof...
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yet to see.. i have all the info prepared in any case
 
marble123 said:
marble123 said:
First step was to ensure I cut most ties with Spain - in my case I have no spouse/children, I was ready to spend significantly less than 183 days in Spain and I rented out my flat in Spain.

I then liaised with an advisor in Cyprus to move ahead with the company creation process and non-dom application, then rented a flat + utility bills, etc.
Click to expand...
Click to expand...
Who helped you to set up your Cyprus company and were you happy with the service provided? Please feel free to PM if you don't want it to be public.
 
marble123 said:
marble123 said:
First step was to ensure I cut most ties with Spain - in my case I have no spouse/children, I was ready to spend significantly less than 183 days in Spain and I rented out my flat in Spain.

I then liaised with an advisor in Cyprus to move ahead with the company creation process and non-dom application, then rented a flat + utility bills, etc.
Click to expand...
Click to expand...

Thank you mate - did you go to any office to communicate that you didn't want to be a tax resident anymore?
 
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