Cyprus legal & tax residency process

[Jerry1911]

Hi,

Could someone please write down (in a few steps) the process of moving to Cyprus as an EU citizen+resident?

Like, what should be done first? (for example: 1. open a company, 2. rent an apartment, 3. obtain yellow slip, 4. obtain non-dom residency)?

I'm not looking for an article, blog post or consulting session, just a few simple steps in regards to the order things need to be done in.

Thanks

 

[CyprusBusiness]

The order you mentioned is correct

 

[RealDude]

e.g. 5. Exit taxation

 

[Jerry1911]

e.g. 5. Exit taxation

That may apply for some (not me), I was just wondering about the Cyprus-side of the process

 

[CyprusLawyer101]

If you are an EU citizen, opening a company shouldn't be a requirement.

 

[Don]

Yo

Hi,

Could someone please write down (in a few steps) the process of moving to Cyprus as an EU citizen+resident?

Like, what should be done first? (for example: 1. open a company, 2. rent an apartment, 3. obtain yellow slip, 4. obtain non-dom residency)?

I'm not looking for an article, blog post or consulting session, just a few simple steps in regards to the order things need to be done in.

Thanks

This can work but you don't need to open a company.
You can also apply as self-employed or open a branch of your foreign company in Cyprus and hire yourself there.

http://www.moi.gov.cy/moi/crmd/crmd.nsf/All/69E690A161D174D6C2257D2C0045750B?OpenDocument

 

[Jerry1911]

Yo

This can work but you don't need to open a company.
You can also apply as self-employed or open a branch of your foreign company in Cyprus and hire yourself there.

http://www.moi.gov.cy/moi/crmd/crmd.nsf/All/69E690A161D174D6C2257D2C0045750B?OpenDocument

That's actually a pretty good option, thanks. So I'd work through a foreign company, pay myself dividends and use a small part of them to cover the social security fees to keep the self-employed status. No need to mess around with Cypriot LTDs, expensive accountants, public registers and banking.

Is it correct that the minimum annual self-employed social security payment is 1258 EUR (14.8% of 8500 EUR)?

 

[Don]

That's actually a pretty good option, thanks. So I'd work through a foreign company, pay myself dividends and use a small part of them to cover the social security fees to keep the self-employed status. No need to mess around with Cypriot LTDs, expensive accountants, public registers and banking.

Is it correct that the minimum annual self-employed social security payment is 1258 EUR (14.8% of 8500 EUR)?

I recommend paying an advisor for ~1 hour to explain everything and guide you through the process.

	Company	Self-Employed
Taxation	12.50%	0-35%
Social Insurance Contributions	Total cost of Company and employee 25.85% on gross income (including GHS)	Subject to categories ( 15.6% + 4% GHS on weekly income based on categories or actual income)
Difference between allowed expenses	Can claim Company’s Social Insurance cost (14.90%)	Cannot claim the cost of self-employment Social Insurance
Annual Levy fee	€350	N/A
VAT threshold	€15.6k	€15.6k
VIES threshold	when selling to EU VAT-registered persons	when selling to EU VAT-registered persons
Obligation for Audit/FS review	YES	only when revenue is above €70.000
Dividend income to shareholder tax	17% but only GHS (2.65% charged on the capped amount of €180.000) if Non-Dom	N/A profit is taxed on the individual level (0-35%) but the same if receives dividends from CyCo or foreign

 

[Jerry1911]

Will do.

Seems like paying 1500 EUR/year is impossible as there is "minimum weekly income" for self-employed persons.

It would be 404.71 EUR per week for my category, so 19426.08 EUR per year. 15.6% of that is 3030 EUR. And this is without the extra 4% GESY fee.

Seems like it would be more cost-effective to just set up a company instead. Audits are going away next year anyway, at least if revenue is below 70k EUR…

 

[CyprusLawyer101]

 

[CyprusBusiness]

That's actually a pretty good option, thanks. So I'd work through a foreign company, pay myself dividends and use a small part of them to cover the social security fees to keep the self-employed status. No need to mess around with Cypriot LTDs, expensive accountants, public registers and banking.

Is it correct that the minimum annual self-employed social security payment is 1258 EUR (14.8% of 8500 EUR)?

The minmum annual security for self employed depends on each profession. The amount you indicated is for kost professions so expect the same.

However, all our clients relocating to Cyprus form a company for tax optimisation. The non-domicilaition status provides exemption of Special defence contribution on dividend income, interest income and rental income. By being self-employed you will be subject to income tax under the progresssive tax bands ranging between 20%-35%.

Earning dividends solely from a foreign company is tax free but you may need to consider this more in depth due to management and control and CFC rules.