Has anyone moved tax residence from Cyprus to UAE?

[heliotrope]

Has anyone moved tax residence from Cyprus to Dubai?

As per the title of the thread. Just interested in first-hand experience of this process, how much hassle the tax office in Cyprus may have caused/how much proof they asked for of a genuine move, and whether you stayed in the UAE for six months to make sure the transition happened.

 

[Fred]

We have several clients with Cyprus Tax Residence via Yellow Slip and Business/Financial base in‌ Dubai.

Some of them plan to move to Dubai - I keep you posted if‍ we discover any problems from the Cyprus side.

Hint: they are all non-citizens of Cyprus⁠ so for now we think that Cyprus won't care at all if they just cancel⁤ the Residence there and make the move.

 

[kkein]

What's the advantage of moving to UAE, as opposed to staying in cyprus and having‌ the biz in UAE? beyond the saving of the 2.65% contribution on dividends, i mean.‍

 

[MarkusCostigan]

Super interesting. Where is the problem to keep Cyprus non-dom⁠ residence with UAE personal residence + company? With several Cipro --> UAE trips during the⁤ year?

 

[Fred]

Talking Company side of things:

No Audit or Bookkeeping is⁠ a major reason we have seen from clients.

Crypto, Forex Trading, Day Trader etc.

Diversification of having a structure outside the EU and all in all less bureaucracy.

On the⁤ Personal Income side there is in the UAE no Tax - 0% Tax at all⁣ while you are juming loops on Cyprus which is working as long as it's no⁢ longer working.

 

[kkein]

Thanks for the clarification.
Can I ask a semi-OT question here: what costs⁣ are to be expected, for establishment and maintenance, of a free zone company in the⁢ emirates, including banking (as i assume no TW or trendy EMIs possible over there)?

 

[Fred]

ca. 8000 EUR Setup and 4000-5000 EUR yearly running costs depending on the substance you‌ want to have in place.

Banking is somewhere between 0-50$ per month and 10-20$ per‍ Wire Transfer.

 

[Houdini]

Does that apply for all foreigners owning a Dubai company?

We can't‍ avoid CRS this way because the bank is reporting right?

 

[Fred]

Due to the‍ fact at least we approach the Banks only once your Emirates ID, Residence Visa and⁠ local UAE phone no. is in place as well as local substance is setup -⁤ no CRS reporting happens from the UAE Bank side as they have no obligation to⁣ do so - it's a 100% resident case.

To keep this you are required to⁢ be twice per year for 1 day in the UAE.

 

[algotrader]

Does this requirement also apply to those having‍ a long-term visa and is it possible to get such a long-term visa by founding⁠ a company with more than 500k AED in capital?

https://invest.dubai.ae/visas-and-residency

 

[Fred]

No clear guidance - we see in⁠ practice clients coming once a year and are fine however official requirement is twice a⁤ year.