Cyprus - 2,65% NHS as only "cost" from recieving foreign dividends - which country

[bigbite100]

Hello,

with Cyprus Non Dom you are able to earn dividends from a foreign company with 2,65% NHS contribution. To make this the only real "cost", the foreign company should be tax free.

Which countries are useful for this setup? Often Dubai or Singapore are recommended, but both have corporate tax. Also Seychelles is recommended but reputation and banking possibilities are not that good. Previously Belize was used but it´s not working anymore.
Recently heard of Isle of Man and Gibraltar. Gibraltar sounds interesting, but seems like it has corporate tax. Is this tax also implied on foreign income?

Because in optimum case the Gibraltar (or other country) company should send invoices to a US LLC. To set the Gibraltar (or other country) company as a member of the US LLC and recieve the money as dividends from the US LLC would be problematic because the US LLC bank account might get closed if a foreign company is a member (at least if youre using Wise).

Are there any other countries which work for that use case? in ideal case they should be tax free on foreign income.

Thank you.

 

[Marzio]

bigbite100 said:
Gibraltar sounds interesting, but seems like it has corporate tax. Is this tax also implied on foreign income?
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Foreign income is not normally taxed in Gibraltar. Exceptions to this rule are interest income and royalty income

https://taxsummaries.pwc.com/gibraltar/corporate/income-determination

 

[troubled soul]

Bermuda
Mauritius
Turks and Caicos:

 

[bigbite100]

Marzio said:
Foreign income is not normally taxed in Gibraltar. Exceptions to this rule are interest income and royalty income

https://taxsummaries.pwc.com/gibraltar/corporate/income-determination
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Thank you- would sending invoices to a US LLC be considered foreign income? And what about substance requirements? Generally, maintaining a Gibraltar company, would that be a big headache?
And what would be the cost of the company formation and maintenance, including setting a nominee director?

 

[Marzio]

bigbite100 said:
would sending invoices to a US LLC be considered foreign income?
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If you invoice a company from Gibraltar it's local sourced income.

bigbite100 said:
Which countries are useful for this setup?
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BVI it's probably your best bet.

Last edited: Jul 14, 2023

 

[bigbite100]

Marzio said:
If you invoice a company from Gibraltar it's local sourced income.



BVI it's probably your best bet.
Click to expand...

Do you have experience with BVI company formation? What about banking and substance regulations, is it a big headache? Can you support with that?

 

[Marzio]

bigbite100 said:
Can you support with that?
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Nope but you can look at this answer from @Sols

 

[bigbite100]

Any other idea? How to get dividends to Cyprus with only 2,65% NHS cost? (the dividend-issuing country should have 0% corporate tax rate)

 

[bigbite100]

Marzio said:
If you invoice a company from Gibraltar it's local sourced income.



BVI it's probably your best bet.
Click to expand...

BVI added to EU list of non-cooperative jurisdictions for tax purposes​

-> What do you think about that, what consequences will that have for working with BVI?

 

[Marzio]

bigbite100 said:
Any other idea?
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Nevis limited company.

https://denationalize.me/company-fo...ect-your-wealth-in-the-worlds-last-tax-haven/

 

[yngmind]

bigbite100 said:
Any other idea? How to get dividends to Cyprus with only 2,65% NHS cost? (the dividend-issuing country should have 0% corporate tax rate)
Click to expand...

I have the same question.

I think Hong Kong and Singapore will work.

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___
Business Bank Account for your US LLC Remotely

 

[Marzio]

yngmind said:
I think Hong Kong and Singapore will work.
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No it won't work.

 

[bigbite100]

Marzio said:
No it won't work.
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hey @Marzio what do you think about this?

BVI added to EU list of non-cooperative jurisdictions for tax purposes​

-> What do you think about that, what consequences will that have for working with BVI?

 

[Marzio]

I already answered you by directing you to a post about Nevis

 

[bigbite100]

And what about Panama?

 

[blancmon229]

Marzio said:
BVI it's probably your best bet.
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Do banks open accounts for BVI companies? If so, which banks and do they require the UBO to be a resident of BVI?

 

[Marzio]

bigbite100 said:
And what about Panama?
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If you are going to become Panama tax resident then you'll be tax free.

blancmon229 said:
Do banks open accounts for BVI companies?
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Probably only Wise

 

[bigbite100]

Marzio said:
If you are going to become Panama tax resident then you'll be tax free.



Probably only Wise
Click to expand...

You mean the company or personal tax resident? because what should be the difference between Panama and BVI or Gibraltar / IoM ? Sorry if the question is stupid

 

[Marzio]

Is said "if YOU are going to become Panama tax resident" i didn't say if you incorporate in Panama.

The difference is that in Panama you can manage offshore entities like US LLC and authorities don't care.