The Cyprus Non – Domicile Status – a Holistic Summary Guide of Related Advantages
Since the Republic of Cyprus fully joined the European Union (E.U.) in 2004 and taking into account the inherent privileges stemming from the same, coupled with its unique geographical location, its robust private professional services sector and its Common Law based legal system in place, this country is a prime choice of destination for individuals and entities, wishing to move their personal tax residency to it as a preferred and strategic move.
Thus persons and potentially entities both E.U. and Non – E.U., should be aware of the fact that the Cyprus Non – Domicile Status once achieved, provides several and significant fiscal, tax and legal advantages to whom it may concern.
Obviously all required documentation in full compliance with AML / KYC, Compliance and GDPR applicable principles must be adhered to and should be duly provided to qualified professionals, in order to cater for acquiring the Non-Dom Status for the client.
Hence and subject to the above, Non-Cypriots who do decide to move their tax residency in Cyprus, will be considered as Non-Dom for a maximum of 17 years thereafter, either through the usual 183 days test i.e. number of days spent on the island during a calendar year or through the recently introduced 60 days rule test, subject to certain legal criteria.
Once qualified as a Non – Dom, Cyprus offers a vast array of attractive fiscal, legal and tax benefits for both individuals and entities inter alia:
· Freedom of movement, goods and services within the E.U.
· Complete exemption from Special Defence Contribution.
· Complete exemption from Cyprus taxation on dividends and interest, irrespective of the source country and whether the funds are remitted to Cyprus or not.
· Complete exemption from Cyprus taxation on all gains from sale of shares and other qualified titles.
· Complete exemption from Cyprus Capital Gains taxation, which relate to immovable properties situated outside of Cyprus.
· Cyprus registered Companies taxation only imposed on a 12,5% fixed basis on actual profits of the same, after deduction of all reasonable costs, fees and invoices related to the ongoing business activities of the same.
· First Euros €19.500 of taxable income of Non-Dom individual are completely tax exempt.
· 50% tax exemption for remuneration from employment exercised in Cyprus by persons who were non-resident before commencement of their said employment.
· 100% tax exemption on remuneration for salaried services rendered outside Cyprus for more than 90 days in each calendar year to a non – Cyprus resident employer.
· No inheritance, wealth or gift taxation is applicable in Cyprus and the possibility of coupling all of the above with a Cyprus International Trust for healthy business activities, hereditary & inheritance rights, wealth management etc on an ongoing legally and monetary safeguarded manner, is a thriving concern, enjoying a great and dynamic interest in our twenty –three years of experience in related matters.
Our firm with its qualified members and trusted external Associates, is readily available to assist, advise and implement all related procedures upon receipt of applicable enquires and instructions in this respect as per practice.
Alexandros G. Ioannides
Managing Partner & TEP of
Alexandros G. Ioannides & Associates
Advocates & Legal Consultants
10 Hadjigeorgaki Cornesiou,
P.C. 1015 Nicosia, Cyprus
Tel: 00357 22 452224
Fax: 00357 22 762121