Cyprus and royalty income

[AtlasShrugged]

After doing some research, I found this website: Passive income taxation - Patrikios Pavlou & Associates LLC

Royalties earned on rights used within Cyprus are subject to withholding tax of 10%, except royalties relating to cinematographic films, where the withholding tax rate is 5%. Literary, dramatic or artistic work (excluding motion picture films and works on film or videotape for use in connection with television) are tax exempt. As with dividends, royalties earned by non residents of Cyprus, are also exempt from tax.

What does earned by non residents of Cyprus mean? Do they mean those with non-dom status? And can anyone from Cyprus confirm if this is true? For more context, the royalties will be derived from the US, and I know there already is a tax treaty between Cyprus and the US, so there's no withholding tax.
Cyprus - ECOVIS International this website mentions something similar:

10%	For IP rights used in Cyprus. Treaty rates may be as low as 0%

 

[Tetiana]

Are you a youtuber? What are the best options to receive US royalties tax free?

 

[AtlasShrugged]

Are you a youtuber? What are the best options to receive US royalties tax free?

No, most of my income comes from writing fiction.

For now it seems to be Cyprus. Although I found about this recently.

I've read somewhere here that you can do some kind of setup in Georgia and end up with 0 percent since they also have a tax treaty with the US, but I don't want to live there 6 months a year, so it's not an option for me.

Unfortunately for us who lives out of royalties, there aren't many of us, so finding info can be a bit tricky.

 

[alain]

@CyprusLaw @CyprusLawyer101 @CyprusBusiness can answer all this through their services.

 

[Tetiana]

I don't want to live there 6 months a year, so it's not an option for me.

I don't want to live there for 6 months a year either!

Could you explain what the deal is with Cyprus 10% withholding tax?

What does it means? That if i receive royalties in Cyprus it will be taxed at 10%?

 

[AtlasShrugged]

I don't want to live there for 6 months a year either!

Could you explain what the deal is with Cyprus 10% withholding tax?

What does it means? That if i receive royalties in Cyprus it will be taxed at 10%?

No, you misunderstood my post. If you receive royalties from the US and the country of your tax residency does not have a tax treaty, they'll withhold 30 percent. With a tax treaty, it can be as low as 0 or 5 percent 10 percent etc.

Cyprus does have a tax treaty with the US, so they won't withhold anything, so if Cyprus does not tax royalty income, according to the link I posted, we will end up paying 0 in taxes

I think I see now what you confused the 10% withholding tax with. That's for "Royalties earned on rights used within Cyprus" If you receive money from Youtube, if that's what you're doing, then that has not been earned on rights within Cyprus. Please, read the next sentence afterward.

 

[Tetiana]

if Cyprus does not tax royalty income

That would be awesome, hopefully somebody will confirm this

 

[Leo Vanguard]

No, most of my income comes from writing fiction.

For now it seems to be Cyprus. Although I found about this recently.

I've read somewhere here that you can do some kind of setup in Georgia and end up with 0 percent since they also have a tax treaty with the US, but I don't want to live there 6 months a year, so it's not an option for me.

Unfortunately for us who lives out of royalties, there aren't many of us, so finding info can be a bit tricky.

You can apply for Georgia HNWI and get their tax benefits without being there, if you have 500k to invest.
This will be a tax free setup for your royalties.

That would be awesome, hopefully somebody will confirm this

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