5 minutes offshore - cyprus: „resident, but not domiciled”
DESCRIPTION
What is „domiciled status”?Changing “domicile” – domicile by choiceChanges in the tax laws in CyprusThe automatic exchange of information requirements in the case of Cypriot tax residentsThe most important steps in becoming tax residentWith 24 years of experience, LAVECO Ltd. undertakes the following services:TRANSCRIPT
-
LAVECO LTD.Legal Solutions since 1991
Resident, but not Domiciled
Offsh re5 minutesCyprus
-
LAVECO LTD.Legal Solutions since 1991
www.laveco.com
What is domiciled status?
A term used in English common law countries and their former territories (UK, Malta, Cyprus etc.), to determine, based on the place of residence of the childs father at the time of birth, a persons principal permanent home.
If the child has no father (the father is unknown), then the mothers status is used.
In both cases, this is the so-called domicile by origin. Cyprus follows the same system: Wills and Succession Law.
Changing domicile domicile by choice
Changing domicile is neither easy nor automatic. It is possible, by re-locating from abroad to a common law country (UK,
Malta, Cyprus etc.). Cyprus: the individual must have paid tax in Cyprus for 17 of the last 20
years.
NB: The majority of people re-locating to Cyprus fall into the resident, but not domiciled category.
Changes in the tax laws in Cyprus
On July 15th 2015, changes in the Special Defence Contribution Law came into effect.Individuals with resident, but not domiciled status are exempt from certain taxes:
dividend revenue interest revenue.
NB: Resident and domiciled and tax-resident and domiciled individuals in Cy-prus will continue to pay the 30% Special Defence Contribution on dividends.
Who is all this good for?Primarily, individuals with capital re-locating here from abroad.
Capital gains were exempt from tax before the changes, too.From now on, dividends and interest will also be free from tax.
-
Offsh re5 minutesworldwidecitizenship.comNB: They wanted to attract owners of capital who had earlier accumulated funds in, say, the bank account of an offshore company.
The term Controlled Foreign Company does not exist in the tax laws in Cyprus, meaning that an individual resident, or tax resident, in Cyprus can hold their money in a low-tax company.
The automatic exchange of information requirements in the case of Cypriot tax residents
No Controlled Foreign Company in tax laws no requirement to pay tax on non-dis-tributed income.In the case of distributions: dividends are exempt from tax interest revenue is exempt from tax capital gains are free from tax
Further advantages: Flexible legislation and legal practice. Not necessary to hold money in Cyprus bank account can also be abroad. No checks on those not actually present in Cyprus. There is a tax authority and annual tax return: taxed income can be officially
certified with an official document (whereas in Dubai, for example, there is no tax authority and income received there can only be proved by bank statements).
The most important steps in becoming tax resident
1. A tax resident spends the majority of the year more than 183 days in Cyprus.
2. Registration with the tax authority: if an individual registers in the second half of the year, it is difficult to say whether or not they qualify as tax resi-dent in that year.
3. Social security registration is also recommended.
NB: Resident and tax resident are not synonyms. The tax year in Cyprus is the same as the calendar year.
-
Offsh re+ [email protected] [email protected]@laveco.com+40-21-311-6176 [email protected]
+357-24-636-919 [email protected]
For additional information please visit our site www.laveco.com
or contact one of our offices worldwide:
With 24 years of experience, LAVECO Ltd. undertakes the following services:
Obtaining residence permits in Cyprus for non-EU citizens (without the right to work)
Registration of EU citizens in Cyprus, including the right to work
Our services include: - Case to case and continuous consultation - Opening of bank accounts - Company formation and general administration - Accounting and auditing - Locating real estate (for renting or purchasing) - Tax office registration - Registration with immigration office - Registration with social security office
LAVECO LTD.Legal Solutions since 1991
www.laveco.comworldwidecitizenship.com
Cyprus domiciled_EN_webCyprus domiciled_EN_web msolata