Cyprus + UAE company

[Sols]

Why do you say it? could you elaborate? I've seen a lot of people here suggesting this set up.

In the case of Cyprus, it's a waste of time and money because Cyprus does not care. They don't even bother people who form offshore companies with themselves as directors and shareholders.

Setting up and office and hiring people in Cyprus is for when you want the opposite: when you want the company to be tax resident in Cyprus. This can be useful if the UBO lives in a jurisdiction with high taxes and aggressive tax authority. In the case described here, it adds no value (just costs and taxes).

 

[BasedOperative]

In the case of Cyprus, it's a waste of time and money because Cyprus does not care. They don't even bother people who form offshore companies with themselves as directors and shareholders.

Setting up and office and hiring people in Cyprus is for when you want the opposite: when you want the company to be tax resident in Cyprus. This can be useful if the UBO lives in a jurisdiction with high taxes and aggressive tax authority. In the case described here, it adds no value (just costs and taxes).

What I meant is that some people use an offshore company to receive money from clients, and then use a separate Cyprus company (or EOR) to hire themselves in order to separate the physical service delivery from the offshore company, thus reducing the PE risk.

This way the two companies interact as independent contractors and no work is physically done in Cuprus by the offshore company itself (but by a separate CY entity or an EOR)