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How to prove to a Cyprus bank I live in Cyprus

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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!
 
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.
 
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.
 
Nominees with real office and resident in Cyprus as well as good connection to the bank is the KEY! It will solve your issue to get a bank account there!
 
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!
 
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).
 
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?
 
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.
 
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 :)
 
Okay, I moved to Cyprus almost a year ago, we are in the adult e-commerce industry. I had a Georgian LLC before, but just mentioning that at BOC made the sirens go off. So no bank account first, but here are the steps : 1) tenancy agreement 2) with tenancy agreement and 6 months proof of income plus drawn up contract of employment from my Georgian LLC + Health Insurance In Cyprus important make appointment in Larnaca for immigration-> relatively quick. With yellow slip and first electricity bill plus all the other documents -> incorporate Cyprus LTD then when company is finally incorporated I would suggest Hellenic Bank...they make you rund stupid errands for stamps and forecast of revenue ...you just have to be confident and tell them it’s bulls**t and have a good accountant who agrees with you :) maybe this helps a little
 
Hi,
I live in Cyprus as well since 5 years now and I've running an Adult Business (Dating).
I've an account with BOC but they are becoming really strictly, every year the review from the Compliance is getting deeper, so, I think they kick me off soon. (So, I'd feel like not recommending it).

So, will you suggest Hellenic? That's strange because a friends of mine has been kicked off from there just because he was selling in dropshipping goods (nothing adults) from China to EU.
He's at AlphaBank now.

Thanks!
 

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