Question Cyprus Company for Non-EU (?)

[rivertorain]

I'm an Australian citizen who has been living in Germany on a self-employed/freelancer visa for the last 5 years.

I was planning to incorporate in Cyprus but it seems that it is more difficult than I thought as I'm non-EU. My goal is to find an EU solution that 1) allows me to save on taxes and 2) allows me to stay in the EU working remotely (via computer).

From speaking to various lawyers/accountants, my options seem to be:

1. Incorporate a Cyprus company with EUR170k capital into a Cyprus bank (which I really don't want to do). I then employ myself and get permanent residency with non-dom status.
2. Incorporate a Cyprus company with a local nominee director and I would be a shareholder receiving dividends. I don't think I'm legally allowed to work with this option though (?)
3. Incorporate a UK Ltd and setup a branch in Cyprus, then employee myself with non-dom status.

Does this sound right to y'all? I'd love to hear from any non-EU citizens who have found a solution in EU.

 

[dlttrading]

Cyprus company makes from my point of view only sense when you also move to cyprus as a non dom.
I don¨t know how much income we are talking... I heard that in eastern europe you can do stuff like micro company in RO or something similar in CZ (for income from 30-100k more or less). In case you have more income than 100-200k per year probably CY is better ( when you can get the Residency as non dom ). Cyprus residency as Non don also cost you minimum 10-20k per year in rent, taxes, other costs.

I am also in CY and really like it here. But I am EU national so the immigration was very easy. I think there is no risk to put the 170k into cypriot bank ( in case you anyway have the funds on some banks or custodians) The KYC is very strict in cypriot banks so it is a pain to work with but in general they are very safe and regulated so your funds are not at risk. For your daily business I would use some EMI companies for daily banking , billing etc.

Maybe you can also use the 170k for your salary or difidends and easily withdraw from time to time so you take it out from bank and still holding the residency with some tricks.

CY in general is great when you compare with other south european countries because of english language, international expat community, business comunity, very good law firms and accountands. . The biggest disadvantage is the distance to middle europe or other countries . But this is the reason why taxes are so low

What I also love that as soon you find the right law firm and accountand you will see how good CY is and how straight forward.
They love to help international business man. I am sure they find good solution to get you somehow the residency when you from Australia as they really like europeans also. Cyprus is much more than only the written law textes. In reality everything is more relaxed than the written law.

 

[rivertorain]

Thanks for the reply! My income is around 250k EUR so it is significant enough.

 

[baitmine]

Just to clarify, you're also planning on migrating to Cyprus? Otherwise, I don't see much point in incorporating there.

 

[rivertorain]

Just to clarify, you're also planning on migrating to Cyprus? Otherwise, I don't see much point in incorporating there.

Yes, I'm moving there this Friday. I think it's perfect for me as I'm mostly a digital nomad and only have to be there for 60 days per year, plus English-speaking, and the climate/sea.

 

[baitmine]

I understand. I'm in a similar situation to you, I'm hoping to migrate there later this year. However, still in the process of verifying some of the tax-related aspects. It can be quite difficult to get a hard confirmation of any one thing, especially as you see a lot of simplifications as well as wishful thinking making its way around the vine.

How's the current border situation, do they allow visitors from more countries now?

 

[rivertorain]

I understand. I'm in a similar situation to you, I'm hoping to migrate there later this year. However, still in the process of verifying some of the tax-related aspects. It can be quite difficult to get a hard confirmation of any one thing, especially as you see a lot of simplifications as well as wishful thinking making its way around the vine.

How's the current border situation, do they allow visitors from more countries now?

Good luck with your plans! Yes, they allow visitors from most of EU but I needed a PCR test before flying from Germany, plus another one on arrival. Glad to be here though.

 

[baitmine]

That's great. Are you staying in AirBNB units until you've figured out where and what exactly your plans will be? The thing is, I would be flying directly from Asia, unsure if I would have to make a pit-stop somewhere in Europe before I would be able to enter Cyprus (I know they've got that flightcheckpass thing now). Anyhow, it's not relevant yet as I still have a lease where I'm at.

Have you been able to find any good accounts/tax-lawyer firms to assist you? If so, I wouldn't mind a recommendation.

 

[CyprusLaw]

That's great. Are you staying in AirBNB units until you've figured out where and what exactly your plans will be? The thing is, I would be flying directly from Asia, unsure if I would have to make a pit-stop somewhere in Europe before I would be able to enter Cyprus (I know they've got that flightcheckpass thing now). Anyhow, it's not relevant yet as I still have a lease where I'm at.

Have you been able to find any good accounts/tax-lawyer firms to assist you? If so, I wouldn't mind a recommendation.

Will you be starting a company in Cyprus? I could make some recommendations over PM.

 

[baitmine]

Will you be starting a company in Cyprus? I could make some recommendations over PM.

Feel free to pm, my account is not old enough to be able to pm it seems.

 

[CyprusLaw]

Feel free to pm, my account is not old enough to be able to pm it seems.

Same issue here - will see what i can do.

 

[Rprox]

I'm an Australian citizen who has been living in Germany on a self-employed/freelancer visa for the last 5 years.

I was planning to incorporate in Cyprus but it seems that it is more difficult than I thought as I'm non-EU. My goal is to find an EU solution that 1) allows me to save on taxes and 2) allows me to stay in the EU working remotely (via computer).

From speaking to various lawyers/accountants, my options seem to be:

1. Incorporate a Cyprus company with EUR170k capital into a Cyprus bank (which I really don't want to do). I then employ myself and get permanent residency with non-dom status.
2. Incorporate a Cyprus company with a local nominee director and I would be a shareholder receiving dividends. I don't think I'm legally allowed to work with this option though (?)
3. Incorporate a UK Ltd and setup a branch in Cyprus, then employee myself with non-dom status.

Does this sound right to y'all? I'd love to hear from any non-EU citizens who have found a solution in EU.

Cyprus company makes from my point of view only sense when you also move to cyprus as a non dom.
I don¨t know how much income we are talking... I heard that in eastern europe you can do stuff like micro company in RO or something similar in CZ (for income from 30-100k more or less). In case you have more income than 100-200k per year probably CY is better ( when you can get the Residency as non dom ). Cyprus residency as Non don also cost you minimum 10-20k per year in rent, taxes, other costs.

I am also in CY and really like it here. But I am EU national so the immigration was very easy. I think there is no risk to put the 170k into cypriot bank ( in case you anyway have the funds on some banks or custodians) The KYC is very strict in cypriot banks so it is a pain to work with but in general they are very safe and regulated so your funds are not at risk. For your daily business I would use some EMI companies for daily banking , billing etc.

Maybe you can also use the 170k for your salary or difidends and easily withdraw from time to time so you take it out from bank and still holding the residency with some tricks.

CY in general is great when you compare with other south european countries because of english language, international expat community, business comunity, very good law firms and accountands. . The biggest disadvantage is the distance to middle europe or other countries . But this is the reason why taxes are so low

What I also love that as soon you find the right law firm and accountand you will see how good CY is and how straight forward.
They love to help international business man. I am sure they find good solution to get you somehow the residency when you from Australia as they really like europeans also. Cyprus is much more than only the written law textes. In reality everything is more relaxed than the written law.

@dtltrading, I am new to all of this so my questions might be very rudimentary.
- I intend to conduct offshore work, I am a non-EU resident and not residing anywhere in the EU right now but what is the best option a Cyprus Offshore company or UK Offshore company.
- If I have a Cyprus based company, am I restricted by jurisdiction? Or can I conduct work for UK-based clients or what would they stipulate or what clauses should I be made aware of that says its strictly UK
- If I understand your point regarding the annual income, in this context of income - am I still liable for renting although I am not residing in that country where the Offshore company exist?
- Where can I find more info on jurisdictions, I havent even found work yet but by going through this forum hopefully I will become more well versed on this topic. thanks in advance!

 

[dlttrading]

@dtltrading, I am new to all of this so my questions might be very rudimentary.
- I intend to conduct offshore work, I am a non-EU resident and not residing anywhere in the EU right now but what is the best option a Cyprus Offshore company or UK Offshore company.
- If I have a Cyprus based company, am I restricted by jurisdiction? Or can I conduct work for UK-based clients or what would they stipulate or what clauses should I be made aware of that says its strictly UK
- If I understand your point regarding the annual income, in this context of income - am I still liable for renting although I am not residing in that country where the Offshore company exist?
- Where can I find more info on jurisdictions, I havent even found work yet but by going through this forum hopefully I will become more well versed on this topic. thanks in advance!

I think in your case UK limited could be easier to setup and also cheaper in maintainance. I don¨t know the law of your residence where you live and how you would be taxed on dividends from cyprus or UK when you receive them to your home country.

 

[CyprusLaw]

Having a non dom status gives you a number of benefits in Cyprus, for example 0 tax on dividends.

 

[Rprox]

Thank you for the replies, its highly appreciated, current in contact with a few service proviers!

Having a non dom status gives you a number of benefits in Cyprus, for example 0 tax on dividends.