How do you pay yourself when you have a EU company ?

[DubaiOffshore]

Hello,

I'm resident in Dubai and I have to open a company in Europe (Cyprus) where corporate profits are taxed at 12.5%.
Once I pay those taxes, how can I take the rest of the profits to myself ? I just transfer the money to my Dubai account and that's it ? Or is there any legal way to do it ?

 

[JohnLocke]

That's one way, but usuaully people take out the money as payroll so it can be posted in the books as expenditure. That would be the best way of doing it.

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[DubaiOffshore]

If I pay myself a payroll from the Cyprus company, wont I be taxed too ? Can I just pay myself big amounts of payroll outside of the country and pay 0 in income taxes ?

 

[kave3i]

Couple of ways of getting money out of a company are :

1. Salary

As Admin said your Salary paid out would be deducted from the companies profits which would mean your Company in Cyprus would pay less Tax ( - the amount you paid yourself )

= ( payroll = taxable at source + taxable where you're resident )

2. Dividends
Not tax deducatable
( Lump Sums of Money You are paying your self as a director of the company ( taxable at source + taxable where you're resident)

3. Directors Loan
not sure if tax deductable
(taxable at source + taxable where you're resident)

There might be few more that I'm not aware of, someone chime in?

Consult with professionals who can do company management for you in Cyprus and hear their opinion.
Speak to Tax Advisers in Cyprus & Dubai and make sure you're all good.

 

[Spinat]

kave3i said:
3. Directors Loan
not sure if tax deductable
(taxable at source + taxable where you're resident)
Click to expand...

no tax on this part and it is legal in Cyprus! In other EU countries it isn't legal!

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[stevy777]

TRX said:
no tax on this part and it is legal in Cyprus! In other EU countries it isn't legal!
Click to expand...

directors loan: Is it legal in Gilbratar and Isle of Man?

 

[JosephLL]

@TRX I wanted to ask about the loan taking for quite some time, since it pops up all over the forum. Can you please give an example of how is this done? Why director's? A legal entity gives a loan to physical entity, which has to he employed or not? What about the repayment then? It seems like a zero sum game, a loan has to be repayed, right? Does a receiving side repay the loan over some time with income from salary? And interest rate?

 

[ilpablo]

TRX said:
no tax on this part and it is legal in Cyprus! In other EU countries it isn't legal!
Click to expand...

How does it work? And what are the main benefits on doing so?

 

[uplana]

DubaiOffshore said:
If I pay myself a payroll from the Cyprus company, wont I be taxed too ? Can I just pay myself big amounts of payroll outside of the country and pay 0 in income taxes ?
Click to expand...

If it just was that easy 😀 No you will have to pay tax (personal income tax) where you live.

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[cangarooo]

DubaiOffshore said:
Hello,

I'm resident in Dubai and I have to open a company in Europe (Cyprus) where corporate profits are taxed at 12.5%.
Once I pay those taxes, how can I take the rest of the profits to myself ? I just transfer the money to my Dubai account and that's it ? Or is there any legal way to do it ?
Click to expand...

"Hide" your money by receiving and paying fake invoices from real companies.
Get the "hidden" money to be used via credit card and/or withdrawing via ATM.

 

[uplana]

cangarooo said:
"Hide" your money by receiving and paying fake invoices from real companies.
Get the "hidden" money to be used via credit card and/or withdrawing via ATM.
Click to expand...

agree can work 😉

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