Moving to Cyprus: mere business owner + medical insurance vs BO & employee + public healthcare

[AndyAresa]

JimBeam said:
My advice would be to pay yourself the minimum salary and that way you get the health insurance included.
You could pay yourself EUR 1k/month salary and contributions would cost you just extra 130. Take the rest as dividends and that's about it.

Calculator
https://taxapp.cy/income-tax-calculator/

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generally, yes, but the accountants shall also take their fees for additional payroll processing

 

[JimBeam]

Well, then it's up to you to do the math:

Salary cost (social contributions + GESY) + additional accountant costs --- VS --- dividends only + private insurance costs

 

[Houdini]

CyprusLaw said:
You can issue interim dividends without any restriction. If after the audit it shows that these dividends were not out of profits then the difference becomes a debt to the company.
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And when does that debt have to be repaid? Will it be taxed as personal income if you live in Cyprus, or would that be illegal?

 

[CyprusLaw]

Houdini said:
And when does that debt have to be repaid? Will it be taxed as personal income if you live in Cyprus, or would that be illegal?
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Why would it be taxed as personal income? This is dividend income. If you have a non-dom status you pay no tax/SDC on dividend distribution.

 

[A Rebours]

JimBeam said:
My advice would be to pay yourself the minimum salary and that way you get the health insurance included.
You could pay yourself EUR 1k/month salary and contributions would cost you just extra 130. Take the rest as dividends and that's about it.

Calculator
https://taxapp.cy/income-tax-calculator/

Click to expand...

I've done my maths on Excel and if the overall company revenue is low (which could be for this year), salary give you a much lower overall payout.

 

[cuno]

Sols said:
Get a private health insurance for a few thousand EUR/year.
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do you have any recommendation also does it cover entire Europe or Cyprus only ?