Question Dividends as non dom in cyprus
- Thread starter metronic
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You don't get access to the national health system. Some people get private health insurance (usually an international health insurance), others pay themselves a symbolic salary to qualify. Some go without any health coverage at all.
I've heard people run into some issues with the local banks when taking out loans, if they can't demonstrate social insurance contributions. AFAIK, the banks can usually be convinced upon seeing proof of stable dividends payments.
Haven't heard of any other issues.
That's if you're a one-person business. If there are multiple people, the authorities may find it suspicious if everyone is a consultant and not an employee. If you're going to build up a team in Cyprus, consider hiring them as employees. Payroll taxes are surprisingly high in Cyprus, so take that into account.
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This is the probably the answer to your question.
Would you really want to use the NHS in Cyprus?You can get a health insurance with 1.000 Euro excess for outpatione at around 1.700 euro, which is the first thing you should have in every country you live, EU countries included.
In general I always assume that you want to setup something like a cyprus company or a simple UAE residency if you are making at least 6 figure sums, if you are making 60 to 80k and want to live as a digital Nomad, as long as you exit your home country correctly, you can probably survive with an EMI and nobody will bother you. I mean between setup costs, travel, rentals and stuff like that it's probably better to find a place where you would actually want to live and try to optimize tax there.
Non-dom must stay only 60 days a year in Cyprus, so probably they already have international health insurances.
The other way around, is there any advantage in not being an employee of oneself limited company?
That is not correct. You can stay every single day of the year in Cyprus for 17 years and be non-domicile.
Mostly less paperwork, no payroll taxes to worry about.
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This is the probably the answer to your question.
Yes, slightly lower accounting costs and you don't have to budget for payroll taxes (social security contributions, personal income tax).
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This is the probably the answer to your question.
I am an Indian citizen interested in getting a pink slip to move to Cyprus. It does not give me the right to work.
Can I start my own company in Cyprus (with myself as sole shareholder and director) and be actively involved in daily operations? Can I pay myself in dividends every year after corporate taxes are paid? Is this a violation of temporary resident permit rules?
I don't plan to hire any employees.
There are some entrepreneurship visas that might be open to you. AFAIK, they have pretty hefty capital requirements. I'm not very well versed in the details. Would recommend speaking with a law firm that specialises in tax and immigration, such as https://neo.law/ or https://www.cyplaw.com/en/ or http://agplaw.com/
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This is the probably the answer to your question.
The temporary residence permit restricts undertaking paid employment, but you are explicitly allowed to be a director in a company you are a shareholder in and to receive dividends.
Thanks. I will contact them. Are the law firms liable for any legal immigration paid advice they give? Or can it be used to defend ourselves in case immigration authorities find any violation of permit rules?
Typically if you get legal advice and it turns out to be wrong, whether the lawyer or firm is liable depends on why and to what extent it's wrong. I honestly don't know but I do know that suing a Cypriot law firm as a foreigner (especially a non-EU foreigner) would be expensive, slow (years and years), and unlikely to yield any kind of positive result.
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This is the probably the answer to your question.
Does it allow the director active participation in daily operations of the company (that has zero employees) and receive dividends? Asking this question because the dividend here is a result of active effort rather than passive income.
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