Is this how it works?

[realcat]

Hi, can anyone confirm if i am getting this right about Cyprus and if its going to work as i have intended.

Business of online services.

1. Form a cyprus non-resident company and pay accountant firm to do all your tax related paperwork.

2. Pay zero tax in Cyprus

3. Send salary from your Cyprus company to yourself at home country and pay tax on it at home.

 

[JohnLocke]

Thats proparly how it works. You just forget that profits that you keep in the Cyprus company and which are not taxed have to be taxed in your home country regardless if you take the home or not. This apply for most countries global wide.

That's why you either need to make use of double tax treaty i.e. you pay a little tax in Cyprus and don't pay tax at home OR
You register the company non resident and even use nominees to try to proof the company is controlled and managed in Cyprus and not under your control.

You may even use other methods to proof that, but it's not to be discussed here.

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[bountymounty]

If you pay zero tax in Cyprus you can't do use of double tax treaty!

 

[negon]

realcat said:
Hi, can anyone confirm if i am getting this right about Cyprus and if its going to work as i have intended.

Business of online services.

1. Form a cyprus non-resident company and pay accountant firm to do all your tax related paperwork.

2. Pay zero tax in Cyprus

3. Send salary from your Cyprus company to yourself at home country and pay tax on it at home.
Click to expand...

That's how it can work at least!

 

[bountymounty]

realcat said:
Hi, can anyone confirm if i am getting this right about Cyprus and if its going to work as i have intended.

Business of online services.

1. Form a cyprus non-resident company and pay accountant firm to do all your tax related paperwork.

2. Pay zero tax in Cyprus

3. Send salary from your Cyprus company to yourself at home country and pay tax on it at home.
Click to expand...

did you go with a Cyprus company setup?

 

[realcat]

No, i decided there is no need for that. In my country you pay tax only on profit you take out of company, reinvested money is not taxed.
Circumstances are good enough at home.

 

[Spinat]

At least your learned how this works, so you may got something out of it 🙂