Cyprus Non dom but not be able to stay 60 days there

[cypriotnondom]

Hey guys,

I have a big problem this year.
I´m a non dom in cyprus and spent the last years always my 60 days in cyprus.
The rest I spend in Bali with an investor visa and a few weeks in Germany to visit family.

This year I can´t go to cyprus due to pregnancy of my girlfriend and the mental state of her.
My tax advisor in cyprus says there won´t be a problem on cyprus side but might be a problem from Germany.

How do you see the risks here and what is the best way to go forward.
What would happen if I just say to Germany that I can´t be in Cyprus due to those problems? (I took of some time this year because I sold my business last year and don´t have much income)
What would happen to my non dom then. Could I keep it for the next year?

thanks in advance!

 

[climbwave]

Would You consider UAE visa? It's easy to get.

How Cyprus track Your 60 days?

 

[Sols]

My tax advisor in cyprus says there won´t be a problem on cyprus side but might be a problem from Germany.

What connections do you have to Germany? Do you do business there? Bank accounts there? Investments? Have you properly deregistered from Germany and notified them you are resident in Cyprus?

What would happen if I just say to Germany that I can´t be in Cyprus due to those problems? (I took of some time this year because I sold my business last year and don´t have much income)

If it's a one off occurrence, you have no strong ties to Germany, and things go back to normal next year, it's unlikely anything will happen.

Germany would only care if they for some reason look into your finances and start poking around. Then you might have difficulties proving you were resident in Cyprus. On the other hand, you would hopefully have enough documentation to prove you were instead resident in Indonesia.

What would happen to my non dom then. Could I keep it for the next year?

Non-domicile = a person who was not Cypriot and who has not lived in Cyprus for a total of 17 years. So no problem there.

 

[cypriotnondom]

Hey thanks a lot for the reply.
I don´t have any connections to germany anymore. No business, no property, no investments. One bank account (bank account from germany is registered on my flat in cyprus) I still use personal but nothing else.
I´m properly deregistered in germany and registered in cyprus since 2020. I´m not resident in indonesia. I only have an investor visa (possible to stay up to 2 years)
Cyprus does not track the 60 days what my lawyer says so far. Will pay all my taxes in cyprus as well (personal and business)
Question is only if I could get some problems with authorities in germany or cyprus.

 

[Sols]

I don´t have any connections to germany anymore. No business, no property, no investments. One bank account (bank account from germany is registered on my flat in cyprus) I still use personal but nothing else.
I´m properly deregistered in germany and registered in cyprus since 2020.

Then you are most likely not a person of interest to Germany.

I´m not resident in indonesia. I only have an investor visa (possible to stay up to 2 years)

I know you're not a permanent resident in Indonesia but you are residing in Indonesia and that makes you a resident there.

Cyprus does not track the 60 days what my lawyer says so far. Will pay all my taxes in cyprus as well (personal and business)
Question is only if I could get some problems with authorities in germany or cyprus.

In your case, I don't think anyone will care, as long as it's a one-off exception and things go back to normal. But for your own sake, keep as much documentation as you can to prove your circumstance of why you can't leave Indonesia. It's very unlikely but if for example Cyprus does start asking you questions in 1-2 years, I think they would be understanding of your circumstances related to your girlfriend's pregnancy and medical condition limiting travel back to Cyprus. It doesn't sound like negligent or wilful abuse of the system.

Germany probably won't care either since you have no strong ties to Germany either way. To them, it doesn't make a difference if you are in Cyprus or Indonesia. File and pay your taxes in Cyprus. As long as Indonesia doesn't come after you (which they almost never do to foreigners), I don't think you will run into any issues.

 

[cypriotnondom]

Hey Sols,

thanks a lot. that clarified a lot for me.
Have still another appointment with my Cypriot tax accountant but seems like it won´t be an issue with Cyprus.
Appreciate your time and help a lot.

 

[JimBeam]

On the Cyprus side there will be no issues as they don't care how much time did you actually spent there.

You said she's your girlfriend so you are not married yet, I guess.

But be careful with that as sometimes tax office can say: it's all fine BUT your family is in Germany (wife+kid) so this is where your life activities are so we consider you a tax resident of Germany.

 

[cypriotnondom]

On the Cyprus side there will be no issues as they don't care how much time did you actually spent there.

You said she's your girlfriend so you are not married yet, I guess.

But be careful with that as sometimes tax office can say: it's all fine BUT your family is in Germany (wife+kid) so this is where your life activities are so we consider you a tax resident of Germany.

All good. They live in bali and not in Germany.

 

[oldtimer2]

Seems you are happy with a higher level of risk carrying than others might be . I am no expert on Indonesia or Cyprus and never lived in either country, so others will definitely understand the realities of your situation much better than me that’s for sure. I have no idea what the Indonesia tax laws are or if according to the letter of the Indonesia law you are tax resident in Indonesia. If you and / or your partner are spending over 183 days there then I guess its a subject you would want to understand pretty carefully just for your own peace of mind. However if I speak hypothetically….. others suggest Indonesia might not come after your taxes any time soon … and lets speculate and say maybe they never come after you if there is not a lot to take …. but no matter what you think about being tax resident or not in Indonesia you might feel safer if you know how long is the statute of limitations on unpaid and undeclared taxes in Indonesia. Many countries its 5 years for the tax office to start proceedings. Also…. Not sure if its a criminal offense to not declare taxable income etc in Indonesia. (I am NOT saying you are doing anything wrong… just wondering if maybe they think you are then what’s the possible downside/s? ). These days having any kind of such offense record is a real bummer when trying to get other residencies. So erring on the side of ticking correct boxes is preferable if at all possible and sensible (i.e. if its not going to open some can of worms/raise flags etc etc).

To go back to the basics of the 60 day rule…
Isn’t Cyprus 60 days status depending on not spending more than 183 days anywhere else? Seems you are more than 183 days in Indonesia…. Or maybe I misunderstand and you are being careful to be in Indonesia less than 183 days and your partner also spends less than 183 days there??
I am sure you have read the below info plenty of times…. To quote PWC:
“ The '60-day rule' for Cyprus tax residency is satisfied for individuals who, cumulatively, in the relevant tax year:

• do not reside in any other single state for a period exceeding 183 days in aggregate
• are not considered tax resident by any other state
• reside in Cyprus for at least 60 days, and
• have other defined Cyprus ties.

To satisfy the fourth criteria, the individual must carry out any business in Cyprus and/or be employed in Cyprus and/or hold an office (director) of a company tax resident in Cyprus at any time in the tax year, provided that such is not terminated during the tax year. Further, the individual must maintain in the tax year a permanent residential property in Cyprus that is either owned or rented by the individual.”

That all seems clear and seems an easy check list to pass or fail.