I live in Cyprus as non dom. Non dom is only for dividends!! LLC corparations are passthrough meaning money is taxed on personal tax, that means you pay up to 35% tax on it. Careful. 😉
Also since last year, there is some health tax on dividends. (2,5%) Its capped after 300k or something. Not many people know.
And also important: Cyprus has no CFC rules on the personal level (only corparate) but they have some rules of management. Its mostly to establish residency for people who want to have their company resident in Cyprus but they could also read like you get counted as a resident company. You should use nominees which is a problem with bank accounts.
If you want to use an llc you need another company that owns the llc. Also︀ problematic with bank accounts.
I have Seychelle Company and transferwise. But i only have one︁ income source and its a reputable company. Transferwise wanted a s**t ton of paperwork. Just︂ send them everything you can think of even if they dont ask. I even got︃ usd account but i didnt get a debit card.
When i moved here i also︄ wrote a government offical in the finance ministry and asked if i am allowed to︅ own an offshore company. This is what i got back, in maybe it helps you:︆
A foreign company can be considered to be a Tax Resident of Cyprus if it︇ is managed and controlled in Cyprus.
The prerequisites to establish that management and control are︈ exercised in Cyprus are-
-the majority of the Board of Directors is tax residents of︉ Cyprus,
-the meetings of the Board of Directors are taking place in Cyprus, and
-the policy making is taking place in Cyprus and key management and commercial decisions are made︊ by the Board of Directors in Cyprus.
Furthermore, the below are taken into consideration to︋ establish management and control in Cyprus:
- the Board of Directors' minutes must be prepared︌ and kept in Cyprus.
- shareholders’ meetings are taking place in Cyprus.
- corporate seal︍ and all statutory books and records are maintained in Cyprus.
- corporate filing and reporting︎ functions are performed by representatives located in Cyprus.
- agreements relating to the company’s business️ or assets are executed or signed in Cyprus.
A company that is a Cyprus tax resident is taxed on its worldwide income, including any income from business in any other country, subject to any double tax treaties.
Also , the profits of Cyprus tax resident company which derive from a permanent establishment situated outside Cyprus are exempt from tax. This does not apply if -
(a) the permanent establishment directly or indirectly engages more than fifty per cent (50%) in activities which lead to investment income, and
(b) the foreign tax burden on the income of the permanent establishment is substantially lower than the tax︀ burden of the resident company or person controlling the permanent establishment and resident in Cyprus.︁
Generally, a foreign company that does not fulfill the above criteria and is not a︂ Cyprus tax resident and that has no income originating in Cyprus and does no business︃ in Cyprus, has no obligation to pay tax in Cyprus.
Please note that advance tax︄ rulings can be issued by the Tax Department if all the data concerning the taxpayers︅ (individuals and companies) involved and the transactions to be carried out, are disclosed. Note that︆ a tax ruling request can be processed only if the form T.D.219 (attached) is submitted︇ and the ruling fee of €1.000, or €2.000 for expedite answer, is paid.
