Do you know about the significant financial benefits of non-domiciled status in Cyprus?
Our specialist Cypriot tax planning lawyers explain the advantages of non-domiciled status in Cyprus and how to go about applying to be a Cypriot non-dom.
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For expert legal advice on Cypriot non-domiciled status email us at[email protected] or book a consultation.
We speak Greek, English, Russian, Arabic and Bulgarian.
The Benefits of Non-domiciled Status in Cyprus
If you think that Cyprus is all about the sunshine, glorious beaches and its historical sites of interest then think again. Those in the know understand that Cyprus is a hidden treasure for those exploring the option of non-dom status.
Not only is Cyprus a beautiful country in the EU it also operates a non-dom programme providing tax exemptions for those who choose to relocate to Cyprus and become tax residents. The tax advantages of the non-dom programme are such that it makes Cyprus a very attractive place for individuals (whether business owners, high net worth individuals, or retirees) and companies interested in company re-domiciliation or operating in Cyprus.
When it comes to the tax benefits of acquiring non-domiciled status in Cyprus the list is long. The key tax benefits for individuals are:
Who Qualifies For Non-dom Status in Cyprus
Qualifying for non-domicile status in Cyprus is straightforward. An individual is eligible if Cyprus is not their country of domicile. The concepts of domicile are defined in Cypriot legislation in The Wills and Succession Law of Cyprus (chapter 195).
Cyprus is your domicile of origin if your father was Cypriot and he was domiciled in Cyprus at the time of your birth. If your parents were unmarried, your domicile of origin is based on your mother. If she was domiciled in Cyprus at the time of your birth then Cyprus is your domicile of origin. You can relinquish your domicile of origin and be a non-dom if you have not been a Cyprus tax resident for at least the 20 years preceding the latest tax year or you have not been a Cypriot tax resident for at least 20 continuous years preceding the introduction of the non-dom programme in 2015.
You can acquire a Cypriot domicile by choice by making the country your permanent home. You can change a domicile of choice by moving and saying that you view another country as your permanent home.
If you do not have Cypriot domicile by origin or choice then you fall into the large class of people who can claim non-dom status in Cyprus. There is an exception to this if you were tax resident in Cyprus for 17 out of the last 20 years as you are then classed as a person with deemed Cypriot domicile.
If you are uncertain about your current domicile and if you will meet the criteria for non-dom status in Cyprus our specialist lawyers can advise you.
Residence Requirement For Non-dom Status in Cyprus
The residence requirement for domicile varies from country to country. In Cyprus, the rules are not arduous for most non-doms. You only need to reside in Cyprus for 60 days a year to be able to benefit from the 17-year non-dom programme provided you do not spend 183 days in any tax year in any other single country or have a tax residency in another country and have defined Cyprus ties such as an employment or a business in Cyprus.
Applying For Non-dom Status in Cyprus
The process of applying for non-dom status in Cyprus depends on whether you are an EU, EEA, or Swiss national or if you fall outside that category.
If you are a European Union or EEA national, or you are from Switzerland, there is a 3-stage process. You can stay in Cyprus for up to 3 months before you start the process by:
If you are from a non-EU or non-EEA country the procedure is different as you may require a visa and temporary residence permit (pink slip) as part of the process of securing non-dom status. Most people take the view that a visa application is justified given the significant tax advantages of Cypriot non-dom status as well as all the other natural attractions that Cyprus has to offer those looking to obtain the perks of non-dom status.
How Can We Assist?
Our specialist tax planning solicitors can help you assess the benefits of individual non-domicile status in Cyprus as well as explore the option of relocating your existing company through company re-domiciliation or setting up a new corporate structure in Cyprus. Our immigration experts can help you with all your visa requirements.
As experts in Cyprus domicile and tax laws for individuals and corporates, we can advise you on the legal and practical issues and work with your financial advisors, company accountants, in-house lawyers, and corporate lawyers in your current legal jurisdiction.
Contact us
For expert legal advice on non-domicile status in Cyprus email us at [email protected] or book a consultation.
We speak Greek, English, Russian, Arabic and Bulgarian.
The information provided above by C. Pilyugin & Co LLC is intended for general information purposes only and should not be construed as professional or legal advice in any sense. It is advised that readers should refrain from acting only on the basis of the above information without first obtaining legal or professional advice on the subject.
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