How to prove to a Cyprus bank I live in Cyprus

Hi, folks - hope you're well.

I have registered a company in Cyprus and now need to open a Cyprus corporate bank account.

I don't have someone to introduce me. As a result of this, the banks prefer I actually live in Cyprus, to prove all strategic decisions are made in Cyprus - especially since the latest changes in regulations regarding "shell companies". Living in Cyprus is good for overall "substance" reasons as well, in case our company as a whole gets audited at some point.

I'm currently weighing my options, and have a few questions...

1) How can I show to banks (or other Cyprus authorities) I live in Cyprus? Do I just rent an office in Cyprus in the name of the company, and show the first utility bill to the banks? Or do I need to prove I have ALREADY lived in Cyprus for at least 6 months of the last calendar year?

2) How do they determine my physical presence in Cyprus or in the office? Do they check my passport? Do they physically visit the office? Do they often check the utility bills to make sure electricity etc is being used?

Thanks in advance for your help!
 

OTR365

Building Trust
Entrepreneur
1) How can I show to banks (or other Cyprus authorities) I live in Cyprus?
Most probably you will need to show Yellow Slip, which is a document given by Immigration Office. Passing the immigration requires different things depending on your background. But e.g. rental contract for a residential property and a proof of income/wealth needs to be shown. You will get a list of required documents on your first visit to the Immigration Office.

Or do I need to prove I have ALREADY lived in Cyprus for at least 6 months
I am not an expert on Cyprus companies & banking, but I don't think you would need to prove that.
 

Admin

Forum Moderator
Staff member
1) How can I show to banks (or other Cyprus authorities) I live in Cyprus? Do I just rent an office in Cyprus in the name of the company, and show the first utility bill to the banks?
That should be sufficient. Do you live in Cyprus already or consider to move there?
2) How do they determine my physical presence in Cyprus or in the office?
You need someone to sit in a office in Cyprus so it will be considered local.
 

Sols

Building Trust
Entrepreneur
The bank might ask you to show a yellow slip, which can be tricky if you're not actually resident in Cyprus. It's proof that you are registered resident in Cyprus. They can also ask for you tax ID number, which you get by going to the tax office with your yellow slip.
 
Thanks for all the replies.

I live in Greece.

I have family in Cyprus, and visit them once a year.

I'm considering living there for 6+ months of the year if I absolutely have to. From what I understand, that would make me a "Cyprus resident."

I work 100% online. This means I can rent an apartment and declare that as a "home office."

But again, what if someone makes a check when I'm not in the "home office"? It's not like I have to have specific work hours. If I want to, I can work from 21:00-02:00 and still be fine work-wise. Or, what if I'm in Greece when they make the check?

I guess what confuses me is this:

Does the business OWNER need to live in a country for 6+ months out of the year to be considered a resident of that country? But the business DIRECTOR needs to live in the country and stay in the office 365 days of the year?

Thanks!
 

Sols

Building Trust
Entrepreneur
You only need to be resident 60 days a year to be tax resident in Cyprus if you also start a business there, and if you're also not resident somewhere else for more than 183 days per year. Once you have your yellow slip (which is very easy as an EU national), you can show this to the bank along with a rental agreement.

Banks in Cyprus have been instructed by the Central Bank to not accept shell corporations anymore. This means you need to show that you have an actual office somewhere. The strictness of these controls vary. For example, rental agreements may prohibit you from running a commercial activity (whether due to zoning or insurance reasons). I haven't seen banks care too much about this yet. They are more worried about having hundreds of companies using law firms' addresses.

Showing that you rent a place in Cyprus, along with a yellow slip, should be fine. It probably doesn't hurt that you have a Greek name (if you do).
 

user9823671

Active Member
You only need to be resident 60 days a year to be tax resident in Cyprus if you also start a business there, and if you're also not resident somewhere else for more than 183 days per year. Once you have your yellow slip (which is very easy as an EU national), you can show this to the bank along with a rental agreement.

Banks in Cyprus have been instructed by the Central Bank to not accept shell corporations anymore. This means you need to show that you have an actual office somewhere. The strictness of these controls vary. For example, rental agreements may prohibit you from running a commercial activity (whether due to zoning or insurance reasons). I haven't seen banks care too much about this yet. They are more worried about having hundreds of companies using law firms' addresses.

Showing that you rent a place in Cyprus, along with a yellow slip, should be fine. It probably doesn't hurt that you have a Greek name (if you do).
so the structure of having a non-dom cyprus company paying 0% tax with nominees is no longer viable?
 

Sols

Building Trust
Entrepreneur
so the structure of having a non-dom cyprus company paying 0% tax with nominees is no longer viable?
What's being discussed in this thread is OP having to prove to a Cypriot bank that his company is not a shell corporation to a local bank in Cyprus. He could still find a bank or EMI outside of Cyprus and it wouldn't be an issue.

When it comes to corporate residency, Cyprus looks at where management and control are exercised. If it's outside of Cyprus (shareholders, directors, and managers), the company is not resident in Cyprus and not subject to Cyprus corporate income tax. But that doesn't solve anything. You still need to pay corporate tax somewhere.

Just to get the terms right, I believe you're referring to non-resident company. The non-domiciled rules are unaffected by any of this. A company owned by a non-domiciled resident would pay the corporate tax (12.5%) but then not be subject to any further taxation on dividends received from the company.
 

user9823671

Active Member
What's being discussed in this thread is OP having to prove to a Cypriot bank that his company is not a shell corporation to a local bank in Cyprus. He could still find a bank or EMI outside of Cyprus and it wouldn't be an issue.

When it comes to corporate residency, Cyprus looks at where management and control are exercised. If it's outside of Cyprus (shareholders, directors, and managers), the company is not resident in Cyprus and not subject to Cyprus corporate income tax. But that doesn't solve anything. You still need to pay corporate tax somewhere.

Just to get the terms right, I believe you're referring to non-resident company. The non-domiciled rules are unaffected by any of this. A company owned by a non-domiciled resident would pay the corporate tax (12.5%) but then not be subject to any further taxation on dividends received from the company.
thanks for clearing that up, I had it all confused :)
 
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