Hi guys, thoughts on this setup?
A Cyprus non-dom resident owns a UAE company with a UAE office. You work remotely from Cyprus but:
- Have no Cyprus clients.
- Keep funds in non-EU bank accounts (or even just leaving them in the UAE company).
- Don’t remit huge amounts of money into Cyprus (very little, just to cover personal living expenses).
- Keep the company’s management and control documented as UAE-based as much as possible, possibly using a local director, small rented office, and flying there once a year for “board meetings”. (but no expensive substance setups).
- Benefit from Cyprus non-dom rules (0% tax on foreign dividends + 2.5% GESY capped at 4500€).
Result: The UAE company is very unlikely to be treated as tax resident in Cyprus (hopefully, but correct me if I’m wrong), and you benefit from non-dom Cyprus taxation on foreign dividends.
Let me know your thoughts and whether you know anyone who is currently using a similar setup successfully.
Update 1: If this does work, would it also work with a HK company or other zero tax company, instead of UAE?
Update 2: I’ve also read on this forum that some people run this setup but handle the POEM/PE issue by having a staffing company in cyprus and paying some tax on a small part of the profits, or by employing themselves through an EOR. Anyone knows more about how (and if) this works?
Thanks in advance.
A Cyprus non-dom resident owns a UAE company with a UAE office. You work remotely from Cyprus but:
- Have no Cyprus clients.
- Keep funds in non-EU bank accounts (or even just leaving them in the UAE company).
- Don’t remit huge amounts of money into Cyprus (very little, just to cover personal living expenses).
- Keep the company’s management and control documented as UAE-based as much as possible, possibly using a local director, small rented office, and flying there once a year for “board meetings”. (but no expensive substance setups).
- Benefit from Cyprus non-dom rules (0% tax on foreign dividends + 2.5% GESY capped at 4500€).
Result: The UAE company is very unlikely to be treated as tax resident in Cyprus (hopefully, but correct me if I’m wrong), and you benefit from non-dom Cyprus taxation on foreign dividends.
Let me know your thoughts and whether you know anyone who is currently using a similar setup successfully.
Update 1: If this does work, would it also work with a HK company or other zero tax company, instead of UAE?
Update 2: I’ve also read on this forum that some people run this setup but handle the POEM/PE issue by having a staffing company in cyprus and paying some tax on a small part of the profits, or by employing themselves through an EOR. Anyone knows more about how (and if) this works?
Thanks in advance.