Cyprus, Malaysia & UK

[grahamlondon]

Hi all,


Thanks for welcoming in to this useful forum.


I'm currently UK resident and looking to relocate to either Cyprus or Malaysia.


Currently have a 50/50 owned (with UK partner) ltd company in the UK with overseas clients.


If I was to move to either Cyprus / Mysia and UK partner stayed in UK would there be any tax effective way of getting paid in the new country of residence?


Currently income is paid via dividends in UK.


* One option is to transfer my 50% holding into a Cyprus or Malaysia reg'd company and pay dividends to this company


* Other option is to pay dividends from UK to me as individual in either Cyprus or Mysia.


I welcome your thoughts and ideas on this - in particular any contacts you think I should speak to in the first instance.

 

[JohnLocke]

Is this permanent or do you consider to move back to the UK after some time? If so how long do you consider to be abroad?


Most often there will be tax complications when one sells shares from an existing company to a Holding company regardless if the holding is located in Cyprus or any other place, it will be the UK tax authorities who will tax you personally, check with a local tax advisor on this, it is important to avoid any tax problems.

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[grahamlondon]

It's going to be for 2-4 years and then move to Australia. Not intending to go back to UK.


Would it be more tax effective to retain the UK company structure and pay out dividends as foreign-earned income to me as Cyprus or Malaysia resident? I believe in this case there is no tax paid on these drawings except for the UK dividend tax at source (10%?).

Last edited by a moderator: Jan 9, 2011

 

[bestman]

Malaysia is a great place have been there for vacation great.

 

[JohnLocke]

Best would be to consult the HM Revenue & Customs website HM Revenue & Customs: Residency which outlines a few important points.


If you consider to move to Cyprus you will want to incorporate a Holding company here, if you transfer the dividend to you personally it will be taxed as personal income which as I mentioned earlier can be avoid if you receive the dividends in a Holding company.

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[EliasIT]

Pay dividends to the Cyprus company and you will face no taxes on that income, then use a Seychelles company to Invoice the Cyprus company and from there get your money out to some sort of anonymous bank account or debit card!

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[Moh1]

What "sort" of anonymous debit card do you mean EliasIT?

 

[bitotan]

There is a great bank available who offer such debit card without any trailing logs etc. I actually hold such a card works great for me.