That is not correct.I've read that to get Cyprus non-dom you either need to form a company or register as self-employed.
If you move to Cyprus to work a regular job (employee), you may qualify for 50% reduction in taxable income, if your salary is at least 55,000 EUR/year. I don't know if this applies if you form a sole proprietorship. AFAIK, if you want to be self-employed, you also need to be an employer. That requires forming a company.There's not much information out there on the latter. What are the advantages and disadvantages of getting non-dom via self-employed rather than by forming a company?
Does this mean, if I'm a personal investor with no formal job, and I'm neither a company owner nor a self employed, I would be still considered a non dom person with the non dom tax benefits? My goal is to generate passive income from my investments, either by receiving dividends from e.g.: Starbucks OR by selling shares few times a year and realizing capital gains.That is not correct.
Everyone who isn't a Cypriot and who hasn't lived in Cyprus for 17 years is non-domicile. It has no importance whether you have a company or not.
This is more or less what I'm interested in doing.Does this mean, if I'm a personal investor with no formal job, and I'm neither a company owner nor a self employed, I would be still considered a non dom person with the non dom tax benefits? My goal is to generate passive income from my investments, either by receiving dividends from e.g.: Starbucks OR by selling shares few times a year and realizing capital gains.
That's interesting, reading all the websites with info on the non-dom program I got the impression that to get non-dom you either have to form a company or be a sole-proprietor.If you move to Cyprus to work a regular job (employee), you may qualify for 50% reduction in taxable income, if your salary is at least 55,000 EUR/year. I don't know if this applies if you form a sole proprietorship. AFAIK, if you want to be self-employed, you also need to be an employer. That requires forming a company.
The advantage with salary is that you get access to the national healthcare system because you have to pay social insurance. It's not the best, but it's an option you'll have available to yourself.
The disadvantage is you have to pay social insurance and other payroll taxes. Those taxes are quite high.
Are you a Cypriot (through ancestry/family) or have you lived in Cyprus for 17 years? If you answered no to both questions, you're non-domicile.Does this mean, if I'm a personal investor with no formal job, and I'm neither a company owner nor a self employed, I would be still considered a non dom person with the non dom tax benefits?
Don't take my word it. Speak with a Cypriot lawyer (there are some on this forum even). There are cases where conducting investments personally can be considered professional activity and the income is viewed as salary as opposed to dividends (or similar types of income which are exempt from taxation for non-domiciled persons). If you instead do it through a company, it might not be considered a professional activity of you personally.My goal is to generate passive income from my investments, either by receiving dividends from e.g.: Starbucks OR by selling shares few times a year and realizing capital gains.
It probably comes across that way because it's such an attractive combination. Many of the websites where you read about it are also hoping to sell you professional services like incorporation.That's interesting, reading all the websites with info on the non-dom program I got the impression that to get non-dom you either have to form a company or be a sole-proprietor.
For people like myself and zeroflag who want live off divided stocks and maybe do some occasional trading what does this mean in practice?For a foreign national the non-dom status can be achieved via 60days or 183days route with or without a company.
However, becoming tax resident of Cyprus by default you need to have a certain status to register for tax. The three options available are:
- Employee
- Self-employed
- Arbitrary registration for non-resident earning rental income from property in Cyprus
I dont see any major exposures on obtaining the non-dom without a company. However, the first step before getting a tax number and non-dom certificate you will need to apply for a visa and in order to do so there are some requirements that you need to fulfil. Happy to PM if you need more infoFor people like myself and zeroflag who want live off divided stocks and maybe do some occasional trading what does this mean in practice?
Yes, please do.I dont see any major exposures on obtaining the non-dom without a company. However, the first step before getting a tax number and non-dom certificate you will need to apply for a visa and in order to do so there are some requirements that you need to fulfil. Happy to PM if you need more info
a visa, for EU nationals too?I dont see any major exposures on obtaining the non-dom without a company. However, the first step before getting a tax number and non-dom certificate you will need to apply for a visa and in order to do so there are some requirements that you need to fulfil. Happy to PM if you need more info
I would suggest to opt for a yellow slip (EU national permit MEU1) as the rights emanating from this are identical to Cyprus citizens (right to work, to stay etc). While for non-EU nationals there are various permits that can be obtained (work permit, temporary residence permit etc).a visa, for EU nationals too?
Cyprus is not yet part of Schengen, so flights to the island from a Schengen country have a border control, but would a visa be easier obtained for a EU than a non-EU citizen? I am asking as I am a dual citizen EU/non-EU.
I am thinking about setting up a CY company (freelance - Finance & IT) of which I'd be the only employee under the 60 day Non-Dom set-up.