Question about taxes - changing country

[germandude]

Hello everyone,


I have a question to you.


Assuming that I would set up a company in Germany (currently resident) in January and would cash out € 7000 and 1 month later I would emigrate to Cyprus and would setting up a Limited


Question: Do the € 7,000 will be taxed retroactively on the Cyprus Limited?


I ask this because I read that in case of staying less than 4 months in a country, I don't have to pay taxes.


Does this also apply if I would stay the first month of 2016 in Germany and the rest of the year in Cyprus?


Thank you very much and a happy new year !


GermanDude


by the way: The tax exemption in Germany is € 8400. Perhaps it plays a role here?!

Last edited by a moderator: Dec 31, 2015

 

[JohnLocke]

How it works in Germany I don't know, but the general answer to your question is more like the following.


Moving funds to a personal account does not involve any withholding taxes.


There is personal taxation if annual income is over €19.500 per year.


Dividends are exempted from taxation. There is an withholding tax of 17% if paid by a company to a Cyprus Tax Resident.


However, as from July 2015, there is no withholding tax on dividends payment to a foreign individual who elects to become Cyprus Tax resident unless he was tax resident of Cyprus for the last 17 out of 20 years. So, the client will not pay any withholding taxes for the next 17 years!

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[myshufflemix]

Admin said:
So, the client will not pay any withholding taxes for the next 17 years!
Click to expand...

Next 17 years? Wow! So the withholding tax is totally free?

 

[Jack Dui]

myshufflemix said:
Next 17 years? Wow! So the withholding tax is totally free?
Click to expand...

Yes, that is why Cyprus was known as tax haven.

 

[deadpool]

Have to love the concept of tax heavens. The big question is how much hassle free or safe is that route.

 

[johnskywalker]

deadpool said:
Have to love the concept of tax heavens. The big question is how much hassle free or safe is that route.
Click to expand...

I think safety is gonna be a small issue since you could hire professionals to handle your account.

 

[SasxInc]

deadpool said:
Have to love the concept of tax heavens. The big question is how much hassle free or safe is that route.
Click to expand...

No worry for doing business in Cyprus . Cyprus is one of the best country for offshore company.