Cyprus: Non-Dom Status on the Mediterranean Island
Secure 17 Years of Tax Advantages
Are you considering emigrating to Cyprus to benefit from the attractive tax laws? Learn in our overview what the Non-Dom Status is and what advantages it offers. We also answer some frequently asked questions about this lucrative tax status in this article.
Secure 17 years of non-domiciled tax advantages
Foreigners looking for tax advantages should look into the Non-Dom Status in Cyprus. Unlike other countries such as Malta, the UK, and Ireland, the country deliberately waives Remittance Base Taxation and has had its special tax status for foreigners expressly approved by the EU. However, to benefit from this Non-Dom program, you must meet certain requirements.
So you have great security! The Non-Dom Status is guaranteed by the state in Cyprus, creating planning security for almost two decades.
If you decide to live and work in Cyprus, the Non-Dom Status gives you long-term planning security of almost two decades. The state guarantees this status for 17 years. This means that thanks to our tax advisors, you do not have to worry about financial matters during this time. This is a great advantage that significantly improves your quality of life. You can relax at your new residence in Cyprus and focus on your career after the company formation of the Cyprus Limited or other important things in life.
If you are looking for a safe and long-term choice, then Cyprus with its Non Dom Regime is the right place for you.
What does Remittance Taxation mean
Remittance-Base taxation is a tax principle that is applied in some countries. It applies to foreigners who have their tax residence in a country but are not considered permanently resident in a country like Cyprus. But what does Non-Dom mean in this context? The persons, often referred to as “Non-Doms”,
Foreign residents should always inform themselves about their local tax regulations and consult a tax expert if in doubt.
Something Important in Advance: this Regulation Does not Exist in the Republic of Cyprus!
In countries such as the UK, Ireland, and Malta, foreigners have the opportunity to obtain Non-Dom Status and thereby benefit from tax advantages. This means that income from abroad is tax-free as long as it does not flow into an account in the Non-Dom country of residence. This special tax certificate repeatedly causes a stir.
Although it initially sounds like an attractive option for those who want to work in EU countries, the Non-Dom Status in combination with Remittance Base Taxation is not always the best choice. There is a crucial thing that must be observed with income: It must neither be imported into the country nor used there. So you could only use your assets on vacation and not at your place of residence in the UK or Malta, where it would make the most sense to use.
By the way: You won’t be bored with our vacation tips for Cyprus.
This regulation does not exist on the island for a Cyprus Holding and private individuals! As a Non-Domiciled entrepreneur, tax optimization is therefore possible in this country. It is therefore no surprise that many people from Malta, Ireland, the UK, and other countries are now emigrating to Cyprus. The reason for this is the special Non-Dom program that applies in this state. Emigrants only have to pay taxes on their income earned in the country and are generally exempt from tax liability for their worldwide income. The Cyprus Non-Dom Status therefore differs significantly from other regulations abroad.
Cyprus: the Non-Dom Program as an Attractive Option for Entrepreneurs with Cyprus Ltd. In the European Union
This attractive tax regulation has attracted many companies that want to save taxes. Although the status is now also offered in other countries, Cyprus remains a popular choice for many emigrants. For Cyprus Non Dom investors, who invest money in cryptocurrencies or stocks is Cyprus an attractive destination due to the tax exemption. Unlike in many other countries, there is no Remittance Base Taxation here. This means that entrepreneurs can have their dividends and interest income paid out to their account both from home and abroad completely legally.
Also, the use of the paid-out dividends for private purposes is not a problem. So if you want to achieve maximum profits on the stock market, you should take a closer look at tax-friendly Cyprus. However, inform an expert in advance, as the tax system is complex. We will explain to you how to successfully move your center of life to Cyprus and what role the minimum stay plays. Apropos: Learn more about Crypto Tax Tips in Cyprus.
Rescue your business from crisis and save on taxes in Cyprus!
Benefit from attractive tax regulations and a high quality of life in Cyprus. Our experienced team will navigate you through the complex tax jungle and help you effectively reduce your tax burden with the Non Domicile Status. Cyprus offers not only tax advantages, but also a pleasant climate, beautiful beaches, and a vibrant culture.
The Foreign Tax Law for the Non Domiciled Status
Cyprus has had a Foreign Tax Law (CFC Rules) since 2019. However, such guidelines are also known in many countries that are rightly called “high-tax countries.”
The Foreign Tax Law, also known as Controlled Foreign Corporation (CFC) Rules, is an important aspect of tax legislation. It has an impact on internationally operating companies and Non-Doms. The Foreign Tax Law was introduced to combat tax avoidance strategies. It stipulates that income earned by a foreign subsidiary can be taxed in the country where the parent company is based. In this way, the parliament and the prime minister wanted to create a solution that attracts entrepreneurs and at the same time prevents tax evasion on the island of Cyprus.
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More InformationCyprus: Still an attractive destination as a Non Dom for emigrating with low taxes
Compared to other countries, Cyprus offers emigrants special tax advantages if, depending on the constellation, you spend at least 60 days or more than 183 days per year on the island. With the Non-Dom Status, foreign income is exempt from taxation. Since the Remmitance Base Regulation, which applies in countries such as Malta and the UK, is not used, Cyprus as a place of residence is particularly attractive due to the Non-Dom Program with a low tax. In the following, we will explain a special advantage in more detail. But please feel free to contact us if you have a question.
Tax-Free Dividends / 0% Dividend Taxes – Non Dom Cyprus
The possibility of not paying taxes on dividends is an attractive aspect for persons with the so-called Non-Dom Status in Cyprus in 2023. This regulation offers significant financial advantages and flexibility for investments – especially for those who are owners or shareholders of a company. Living in Cyprus with this model means: As an entrepreneur, you can maximize your capital gains. Persons with Non-Dom Status are therefore not subject to tax on profit sharing, also known as dividends. However, it must be obtained from a foreign company of the entrepreneur abroad.
This means that they can receive the dividends they receive from their participation in a company completely tax-free in Cyprus and thus increase their sales. These rules apply (in connection with the
They can transfer the profits of this company in the form of dividends to their account as a Dom taxpayer without deductions. This offers additional flexibility, special incentives, and advantages – especially for those who want to use an offshore company or
in the imprint for legal reasons. Such companies can be actively used for legal tax optimization in countries like Cyprus. The Mediterranean island has concluded double taxation agreements with over 60 countries.
That's why the Non Dom Status in Cyprus is particularly attractive
If you are considering Cyprus when emigrating, then the Non-Dom Status is particularly attractive for several reasons:
- Tax advantages: Persons with Non-Dom Status in Cyprus benefit from significant tax advantages. Foreign income is tax-free under certain conditions and the corporate tax rate is only 12.5%.
- Access to the EU internal market: As a member of the European Union, Cyprus offers companies and individuals access to the European internal market.
- Favorable geographical location: Cyprus is strategically located for business trips and trade with the Middle East and North Africa.
- Pleasant climate and good infrastructure: With its warm climate and good infrastructure, Cyprus is a pleasant place to live and work.
- Flexible residence: The Non-Dom Status in Cyprus allows a legal residence with an annual stay of only 60 days with all the advantages.
Tax-Free Online Business as a Non-Dom
Cyprus is far more than just a sunny holiday island in the Mediterranean with a fascinating history and interesting sights. Above all, thanks to the Non-Dom Status, many business activities can be processed tax-free with partners via an offshore business in Cyprus. That is why the Mediterranean island is an attractive country of residence with a perspective – as a center of life or for an online business. You save real money if you compare the island with Mallorca, for example. The Non-Dom Status in Cyprus makes it possible to process a variety of online business activities tax-free via a Cyprus Ltd. after its foundation. Founding a Cyprus company is really easy.
This option is an ideal choice for digital nomads who travel a lot and do not have a long minimum stay in other states. But consider that freelancers pay high taxes in Cyprus. The
- Affiliate marketing and coaching: Whether you are active as an affiliate at Digistore24 or operate your own info products and member areas as a coach - as a Non-Dom in Cyprus, you can process these activities via an offshore company and receive all foreign income tax-free.
- Forex and crypto trading: Trading with foreign currencies (Forex Trading) or cryptocurrencies (Crypto-Trading) can also be operated tax-free as a Cyprus Non-Dom.
- Crypto-Mining: For technically savvy entrepreneurs, crypto-mining offers exciting opportunities. Here, too, the profits for Non-Doms in Cyprus are tax-free.
About Us
BS Holding is your trusted partner for relocating to Cyprus. With years of experience across various industries, we offer tailored solutions designed to meet the individual needs of our clients. Our dedicated team of experts consistently upholds the highest standards and employs innovative approaches to ensure sustainable success.
Advice on the Non-Dom Status: Make Cyprus your tax domicile
Forget the UK and Malta to save taxes with a company like the Cyprus Limited structure! Move to the sun-drenched island of Cyprus in Europe! Thanks to this alternative, you will have more out of life in the long run and can enjoy all the advantages of the Mediterranean island. In this case, as an investor from Germany or Austria, you will soon save money on your tax return after relocating your residence. The Bundschuh & Schmidt Holding Limited in the city of Paphos is at your side. We are committed to ensuring that the relocation to Cyprus is successful and without problems. Buy or rent your property today.
Our knowledgeable team will advise you in a conversation on all aspects of the emigration process – from applying for a Yellow Slips, finding health insurance to founding a Cyprus Limited or Cyprus LTD. We can even give you an understanding of the local tax law, the tax office, the cost of living as an expat in Cyprus and more. As a person, you do not have to deal with the thought experiment of emigration and the acquisition of real estate alone. Find out what the requirements are, how high the tax rate is, and what advantages await you in Cyprus. With our support and expertise, moving abroad has never been so easy!
Get in touch with us and get impartial advice on the Non-Dom Status and more. This way you know for sure whether the island with its excellent services such as the health system in the EU with the Non-Dom regulation is really suitable for you or whether other countries are a better fit for you. Take the first step today!
