Cyprus non-dom resident + Xolo Go?

[digger]

Hi,
I am planning is to move to Cyprus to obtain non-dom status.
My yearly income is around 150k Euros from salary employment, but I can convert it to an invoice with my current employer.
Actual work will be taken place from Cyprus.

I just discovered Xolo Go from browsing the forum.
How will Cyprus treat this tax-wise if I invoice my current employer via a monthly invoice as a freelancer using Xolo Go?
I assume it will be considered as a remote salary and not dividend (and thus almost tax free with 2.65% GHS contribution tax)?
If Cyprus treats this as salary, will I be eligible for the 50% remuneration exemption?

I was also reading about other combinations to pair with my future non-dom status (for taking dividends):

• Barbados company
• UAE FZ company
• UK company (not sure about that one, should read more about it)

Other routes and suggestions will be gladly accepted!

Thanks in advance.

 

[koohl]

You may speak with @Fred about setting up something that suites you in Dubai. I know living in Cyprus can benefit a Dubai setup.

 

[digger]

EDIT:
Even with the 50% exemption the final result is not great according to this calculator; 5.9% Xolo Go comission + roughly 19% in taxes = 25% deduction in Net

Another obvious and straight-forward option to the above would be to incorporate a Cypriot company (12.5% CIT) and take out dividends.

 

[koohl]

Why do you want to use this Xolo solution. You simply create your company in your name if you live in Cyprus! That's cheaper and better long term.

 

[digger]

Why do you want to use this Xolo solution. You simply create your company in your name if you live in Cyprus! That's cheaper and better long term.

I guess you are right in this case.

I am trying to assess all my options and find the best route,
What other options do I have besides Cypriot or UAE company?

 

[Bura]

@digger,
You did not explain your aim of obtaining dot-dom status in Cyprus. For example, if the first aim is your wondering to live in Cyprus – there are one scope of options how to transfer your salary to Cyprus and pay taxes what ever you want. If your aim is to change withholding tax from salary what you are paying now, Cyprus is not the best option. For getting tax benefits of Cyprus taxes, as @koohl mentioned above, you need to establish Cyprus company on your name as shareholder and use IP box regime. The first link in Google about IP box regime in Cyprus Cyprus IP Box Regime - Intellectual Property Law - Taxes and Accounting

 

[CyprusLaw]

Hi,
I am planning is to move to Cyprus to obtain non-dom status.
My yearly income is around 150k Euros from salary employment, but I can convert it to an invoice with my current employer.
Actual work will be taken place from Cyprus.

I just discovered Xolo Go from browsing the forum.
How will Cyprus treat this tax-wise if I invoice my current employer via a monthly invoice as a freelancer using Xolo Go?
I assume it will be considered as a remote salary and not dividend (and thus almost tax free with 2.65% GHS contribution tax)?
If Cyprus treats this as salary, will I be eligible for the 50% remuneration exemption?
View attachment 4803

I was also reading about other combinations to pair with my future non-dom status (for taking dividends):

• Barbados company
• UAE FZ company
• UK company (not sure about that one, should read more about it)

Other routes and suggestions will be gladly accepted!

Thanks in advance.

Firstly, the tax exemption relates to salaried employment, working as a freelancer on the basis of a service agreement will result in a obligation to register as self employed, and you will be fully taxed and will also be liable to pay social insurance.

In your situation the best way would be to set up a company - corporate tax 12.5% plus GHS 2.65%.

With respect to the IP box regime mentioned above, this is extremely strict since the latest amendments and can essentially be used by tech companies. You need to show qualifying income (royalties) from qualifying assets which is mainly from software. Happy to send you a PM about Cyprus

 

[mochilo]

Firstly, the tax exemption relates to salaried employment, working as a freelancer on the basis of a service agreement will result in a obligation to register as self employed, and you will be fully taxed and will also be liable to pay social insurance.

In your situation the best way would be to set up a company - corporate tax 12.5% plus GHS 2.65%.

With respect to the IP box regime mentioned above, this is extremely strict since the latest amendments and can essentially be used by tech companies. You need to show qualifying income (royalties) from qualifying assets which is mainly from software. Happy to send you a PM about Cyprus

I'm searching a local financial assistants to review a possible migration to Cyprus, could you send me a PM too?

 

[JustAnotherNomad]

How will Cyprus treat this tax-wise if I invoice my current employer via a monthly invoice as a freelancer using Xolo Go?

Do not, under any circumstance, use Xolo Go. It's as close to a scam as it gets.
Xolo Go is basically a glorified PayPal. Any money you receive in a Xolo Go account counts as your personal income the moment it is received in the account.
There's a chance that CY tax authorities aren't aware of this, but if they ever take a closer look, they will realize this. Don't do it.