Cyprus company 0% tax on foreign income question?
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my question is... why is cyprus considered such a strong tax haven?
I don't see the major perks exactly. 12.5%... is good, but not great, with better options even in the EU, and certainly much stronger options worldwide.
I don't see what the hype is with cyprus exactly? What's the major reasons so many choose apparently it?
It has it's own category section on this website -- why?
Sorry if missing something obvious, I'm new to researching cyprus.
I don't see the major perks exactly. 12.5%... is good, but not great, with better options even in the EU, and certainly much stronger options worldwide.
I don't see what the hype is with cyprus exactly? What's the major reasons so many choose apparently it?
It has it's own category section on this website -- why?
Sorry if missing something obvious, I'm new to researching cyprus.
Just to clarify Cyprus is not a tax haven. And that’s exactly what is attractive. Tax havens are generally black listed, Cyprus has a number of tax incentives but at the same time does not hold the risks of tax haven jurisdictions.
The 12.5% can be reduced even more depending on your︀ activities, for example, tech companies falling under the IP Box regime pay an effective tax︁ rate of 2.5%.
Further to this, there is no tax/sdc on dividend, and especially if︂ you relocate in Cyprus you will continue to be considered a non-dom for 17 years︃ and be sdc/tax exempt in dividend payments. These are just a couple of the several︄ tax incentives provided in Cyprus.
The 12.5% can be reduced even more depending on your︀ activities, for example, tech companies falling under the IP Box regime pay an effective tax︁ rate of 2.5%.
Further to this, there is no tax/sdc on dividend, and especially if︂ you relocate in Cyprus you will continue to be considered a non-dom for 17 years︃ and be sdc/tax exempt in dividend payments. These are just a couple of the several︄ tax incentives provided in Cyprus.
So if i operate a general trading company in cyprus -- I can simply call all my company's profits dividends right? And pay them out to me the principle shareholder as a dividend payment.
And then I'm essentially paying 0% corporate tax... and 2.65% personal income tax.... And i just need to lease an apartment there year round... and stay there a total of 60 days per year to be tax resident right?
And bank accounts are ok to open in cyrprus for my company? Banks are friendly?
So I'd be enjoying 2.65% overall tax with this structure? And as long as I don't stay︀ more than 183 days in any other country each year I will only be tax︁ resident in cyprus, correct?
And then I'm essentially paying 0% corporate tax... and 2.65% personal income tax.... And i just need to lease an apartment there year round... and stay there a total of 60 days per year to be tax resident right?
And bank accounts are ok to open in cyrprus for my company? Banks are friendly?
So I'd be enjoying 2.65% overall tax with this structure? And as long as I don't stay︀ more than 183 days in any other country each year I will only be tax︁ resident in cyprus, correct?
No, the company has to pay 12.50%. You pay yourself dividends on your cash reserves, which is how much the company has in the bank minus liabilities︀ (such as costs and taxes).
Banks are not friendly but︂ if you're resident and not engaged in anything they don't like (crypto, gambling, adult), you︃ should be able to open an account with Bank of Cyprus, Hellenic, or Alpha.
Banks are not friendly but︂ if you're resident and not engaged in anything they don't like (crypto, gambling, adult), you︃ should be able to open an account with Bank of Cyprus, Hellenic, or Alpha.
darn, so there's no way to escape that 12.5% corporate tax bite in cyprus?
So then cyprus isn't great for a business owner doing trading.
It's great more for stock brokers, passive income shareholders maybe, and capital gains?
But for an active trading company selling products from china to USA -- I cannot avoid the 12.5% corporate tax rate no matter how I structure it?
So then cyprus isn't great for a business owner doing trading.
It's great more for stock brokers, passive income shareholders maybe, and capital gains?
But for an active trading company selling products from china to USA -- I cannot avoid the 12.5% corporate tax rate no matter how I structure it?
Wonder if it would be possible to obtain non domicile status for this company in Cyprus if the UBO also not live there, so it will be 0% tax if that has not changed?
Can you send me a PM? I have a similar case:
- non-EU citizen
- living in Cyprus under non-dom status
- own a Cypriot company
- client in the US
* however, Cypriot government wants to see at least 24k come to me personally from outside of Cyprus to renew pink slip, so considering opening an offshore company and I'l like your advice, please!
- non-EU citizen
- living in Cyprus under non-dom status
- own a Cypriot company
- client in the US
* however, Cypriot government wants to see at least 24k come to me personally from outside of Cyprus to renew pink slip, so considering opening an offshore company and I'l like your advice, please!
@CyprusLaw Would you please elaborate on this :
What constitutes a "tech company" and what exactly is "ip box regime"?
What constitutes a "tech company" and what exactly is "ip box regime"?
Each case is assessed on its merits - legal advice should be sought to determine the applicability of this. Generally, it applies to qualified income deriving from the exploitation of qualifying IP assets. This usually is royalties deriving from the licensing of software - this is the most common example. Happy to PM you to discuss this in detail
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