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Would this set-up trigger tax residency (in Southern European country)?

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It depends⁠ country by country. UK Non-dom scheme is very much popular by HNWI's and it legally⁤ works. I don't know maybe it depends country by country interpretation of tax residence.
If you can get normal tax residence certificate which is valid in terms of double tax⁣ treaties and RESIDENCE IS REAL, I don't think taxmen can win such case. With Cyprus⁢ non dom should be similar.

However, I have heard from my lawyer that 60 days︀ Cyprus "residence" gives you tax residence certificate which states thats it's only valid in Cyprus︁ and NOT VALID in terms of double tax treaties. That could be an issue if︂ thats the case.
But I believe him, because he did many Cyprus residencies.

But I︃ think most important part is to have as many ties with Cyprus as possible. Have︄ real estate, spend time and money there with credit card. Apply for clubs, subscriptions and︅ etc
 
Ads911 said:
Ads911 said:
I prefer to take advice from a professional tax planner and look at facts; that from random people on the internet. I will ask you again, so every person that is a non-dom Cyprus resident and he comes from a civil law country is basically a tax evader?
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No. This is not what I wrote.
Ads911 said:
Ads911 said:
Cypriot authorities are so stupid that didn't realize what you claim?
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No.
Ads911 said:
Ads911 said:
Again if you, by definition, cut your ties from your home country( it's not the case for this Spanish guy who posted this) and you are not tax resident there (by the law), and you have Fiscal residency in Cyprus, no court can tell you that you have to pay taxes there.
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That's the kind of attitude that will eventually cause you big troubles, especially if you are dealing with Italian authorities.
Ads911 said:
Ads911 said:
People ask you about a legitimate source for your claims; you didn't provide anything, just "trust me, bro" ”â™‚️
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This is not the place to write an essay on the concept of domicile and its interpretation in civil and common law jurisdictions.
Since you are Italian: it's exactly how Valentino Rossi got in trouble some years ago with his London residency.

Uomo avvisato”¦

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@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields​

 
You are wrong in so many aspects, but I think everyone will keep⁣ his opinion, so there is no point in arguing...

Anyway, still no evidence about your⁢ claims.."Trust me, bro again," and the Valentino Rossi thing had different implications, nothing to do︀ with the non-dom status, he would have been fined anyway regardless of the country of︁ his residency.
 
Ads911 said:
Ads911 said:
You are wrong in so many aspects, but I think everyone will keep his opinion, so there is no point in arguing...

Anyway, still no evidence about your claims.."Trust me, bro again," and the Valentino Rossi thing had different implications, nothing to do with the non-dom status, he would have been fined anyway regardless of the country of his residency.
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You don't have to convince me but the procura. If you think you know best and can trick the Italian star authorities, go ahead. The money that will take from you will serve to pay a tiny portion of the ever growing National debt, it's so much needed! thu&¤#

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@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields​

 
Seriously you should read what you‍ send!

first of all, here is the main point: (read the BOLD text)

This is the MAIN REASON.

here is︁ the second point: (WHICH IS NOT THE MAIN REASON.

Cyprus's non-dom status doesn't work like in the UK because︊ they ask you to pay taxes (or corporate taxes) from your income, so the main︋ reason why Italian authorities didn't accept the non-dom status, in THIS CASE, does not apply︌ in Cyprus.

Third point:

Again the whole⁠ point is that these people had a real economic and personal involvement in Italy; that's⁤ why the court could do that, then it also mentioned the thing about UK non-dom,⁣ but if you read what you sent, you can see that they mention something that⁢ doesn't even happen in Cyprus because the non-dom status it's not the main point and︀ in the right condition IT IS A FISCAL RESIDENCY.

Italy has this non-dom status too!︁

You both should read what you send instead of being a smartass, and "Berlusconi" should︂ send documentation that confirms what he is claiming instead of "trust me, bro"
 
That ruling does not mean that being non-domicile resident makes you tax resident in Italy.‌

To come to that conclusion, you must be deliberately skipping key details, such as the‍ Supreme Court "ruled in favor of the tax agency and held that the taxpayer should⁠ be treated as a tax resident under the domicile test of Italy’s domestic tax law,⁤ considering that he had his most meaningful personal and family connections and substantial professional and⁣ economic interests in Italy, even though he lived regularly in the U.K."

The particular⁢ tax treaty also states:

Article 4, clause 1 in the Italy,Cyprus treaty︅ does not include the last sentence:
Note the omission of "︉But this term does not include any person who is liable to tax in that︊ Contracting State only if he derives income from sources therein" in that treaty.

But if we take a look at the Cyprus,Spain tax treaty, that wording is in there.︋ The same might be in the UK,Spain tax treaty. Do your own homework. If it︌ is, the risk of the UK non-domicile backfiring for people who maintain substantial professional and︍ economic interests in Spain probably exists. For someone who correctly cuts ties, though, the risk︎ does not appear significant.

However, it's not a relevant concern in the case Cyprus. The️ same ruling would likely not apply and a new ruling would have to be issued.‌ The Cypriot non-domicile exemption status works differently from UK. A Cyprus non-domicile resident does not‍ have to pay capital gains tax (SDC, Special Defense Contribution), but has to be pay⁠ ordinary income tax on their worldwide income.

But, just to reiterate, the situation presented for⁤ the purposes of this thread does not appear sound, and is fraught with risk.
 
OK, smartass, I am sure that you⁤ know better than a professional tax planner the laws, your only argument is "trust me,⁣ bro" it is no coincidence that you have a photo of Berlusconi.

THANK YOU is what I just‌ answered him.

Unfortunately, many Italians have the bad habit to act like smartass without knowing‍ the topic they are talking about, without providing any data or evidence, and without reading⁠ carefully what they send you as "proof"
 
I wish you to never have to deal with GdF, AdE and Procura.
Do you know what they will do with your definitions? rof/% The “professional tax planner” will not save your a*s, unfortunately. You will be royally fucked, in all positions, whipped, tortured, beyond your wildest imagination, for an indefinite amount of time, at their own pleasure and complete mercy, until, if you are lucky, they will accept a settlement. This is assuming you are right in theory smi(&%
If you are not right”¦ well, what I described above will be just the appetizer.

Last edited by a moderator: Jul 5, 2022
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@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields​

 
Now that I read more carefully‍ what you sent (you should try it's free)

That was a clear case of a⁠ person with a business completely based in Italy that goes to the UK, with proprieties,⁤ economic interest, and a family in Italy thinking it was enough not to pay taxes.⁣

He made money from Italy, and since that money weren't tax in the UK, the⁢ court said that ALSO for that reason the UK residency was invalid.

Again nothing to︀ do with the non-dom status per se or Cyprus.

Nothing can change your ignorance... Professional tax planners are the ones you should︆ contact if you want to optimize your taxation legally. You told me to ask the︇ Guardia di Finanza , so I assume that you are so smart that when you︈ have a legal problem, you don't call a lawyer, but you ask for help from︉ a police officer .

You don't know anything about this topic, and it is clear︊ because you are not able to argue, and you cannot provide any FACTS about non-dom︋ Cyprus status being illegal in Italy!

the only "Fact" that was presented (by another Italian︌ "smartass") basically confirmed that you guys are totally wrong, and I am 100% right.
 
I'll take your‌ suggestion under careful consideration 🙂

I didn't said that.

I only⁠ posted that ruling because even if Cyprus taxes you on worldwide income it's safe to⁤ assume that OP would be tax resident under the 60 days rule and if Spain⁣ would claim that he is tax resident in Spain the DTA will not protect him⁢ because Cyprus will not defend his tax residency and the result will be analogous of︀ that ruling.
 
You are hilarious ahahahh︃ how old are you? I am so scared now, your friend from the Gdf will︄ start to monitor me, damn like I give a f**k! I have always paid my︅ taxes and I make decisions only based on professional advice, FACTS, and the law. so︆ you could tell to your imaginary friend from the guardian di Finanza to go f**k︇ himself.

The only reason Spain will claim that he is︌ a tax resident there is because of his 50% participation in a Spanish company and︍ probably because its Cyprus company makes money in the Spanish market (my speculation I don't︎ know), and then for the other reason he claimed...

Again nothing to do with the️ non-dom status of CY as a primary reason, if he had a fiscal resident in‌ Germany the Spanish tax man could take him to court and claim that he is‍ a tax resident in Spain too.
 
I'm just wondering why all the hundreds if not thousands of Italians living abroad under‌ non-domicile schemes (after having severed ties to their home country, besides citizenship) aren't being hauled‍ into court. Italy is desperate for money. We all know the ferocity of the Italian⁠ (and Spanish) tax authorities. Exchange of information is either automatic or practically guaranteed upon request⁤ between EU states (and UK). If what you claim is true, there would be millions⁣ if not billions for the tax authorities to lay claim to and fill up the⁢ dwindling government coffers. Strange, isn't it?

Using the same principle, couldn't they go after people︀ living in UAE and other tax havens? The ruling mentioned here focuses on the income︁ not being taxed at all, not just specifically the non-domicile status.

You're right. I could've clarified that my comment wasn't aimed︃ at you personally. My point was general in nature to anyone reading, who might think︄ that the ruling means non-domicile residents automatically are tax resident based on citizenship if they︅ are Italian/Spanish/whatever.

I don't think it's︊ quite that clear cut.

There a lot about that ruling that isn't relevant for OP.︋ For one, it's an Italian ruling for non-domicile resident in the UK. But even︌ if we take the ruling into account, it seems to focus on absence of personal︍ tax. What we're talking about in OP's case is a Spanish citizen living in︎ Cyprus where he would be liable for ordinary income tax (albeit with an optional 50%️ reduction for foreigners/previous non-residents), ordinary VAT and corporate income tax on his business activities, and‌ social security contributions. It's only SDC that non-domicile residents are exempt from.

The main similarities‍ that are relevant are that Spain and Italy have similar (but not identical) rules of⁠ law, and that OP , like the person in the ruling , maintains professional or⁤ economic interests in their home country. It's likely but not guaranteed that a Spanish court⁣ would make a similar ruling under similar circumstances as in the Italian case. We don't⁢ know if OP's home country ties are as strong, so it's hard to comment on.︀

But we're in agreement that OP's plan is risky.
 
Sols said:
Sols said:
I'm just wondering why all the hundreds if not thousands of Italians living abroad under non-domicile schemes (after having severed ties to their home country, besides citizenship) aren't being hauled into court. Italy is desperate for money. We all know the ferocity of the Italian (and Spanish) tax authorities. Exchange of information is either automatic or practically guaranteed upon request between EU states (and UK). If what you claim is true, there would be millions if not billions for the tax authorities to lay claim to and fill up the dwindling government coffers. Strange, isn't it?
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some things of Italy can only be understood by Italians and after you have gone through the experience and gained an insider's perspective.
Obviously, unless one is very unlucky, nobody cares about a few thousand € or even 6 figures, which is what the typical Italian is avoiding by moving abroad.

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@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields​

 
It's not strange.

It's simply that those people cut⁠ their ties with italy and Italy can't claim that they are tax resident there.

In the OP case he has ties with Spain and the DTA will only help him⁤ if he will stay more than 183+ days in Cyprus.

Anyway i agree, it was⁣ a bad example.
 
Thank you, these guys‌ don't have any idea and are spreading misinformation; I see you are a staff member.‍ I think you should take action, especially for Jhonny doe AKA "Berlusconi," not only because⁠ he is acting as a smartass spreading FAKE information but because when the fool realized⁤ that I was right and couldn't answer, he threatened me, saying that he will use⁣ my Profile picture to make me monitor by "his friend" in the Italian authorities.

Obviously, he is lying, and I don't give a f**k anyway because I don't, and I⁢ won't have any problem with the law, but I don't think he should stay here︀ because it is inappropriate.
 
"can only be understood⁤ by Italians" bulls**t, you are Italian and you don't know s**t.

I think you are⁣ the only one who knows the truth here, while a professional tax planner doesn't know⁢ anything....right?

What is the experience you have been through? you got caught because of your︀ stupidity?

You can't be that stupid, seriously
 
Ads911 said:
Ads911 said:
Thank you, these guys don't have any idea and are spreading misinformation; I see you are a staff member. I think you should take action, especially for Jhonny doe AKA "Berlusconi," not only because he is acting as a smartass spreading FAKE information but because when the fool realized that I was right and couldn't answer, he threatened me, saying that he will use my Profile picture to make me monitor by "his friend" in the Italian authorities.

Obviously, he is lying, and I don't give a f**k anyway because I don't, and I won't have any problem with the law, but I don't think he should stay here because it is inappropriate.
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yes I should be banned for that thu&¤# Thank you for revealing how to avoid paying taxes in Italy. The world was waiting for this.

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@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields​

 
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