Is this how it works?

Discussion in 'Cyprus Company formation' started by realcat, May 23, 2018.

  1. realcat

    realcat Active Member Entrepreneur

    Hi, can anyone confirm if i am getting this right about Cyprus and if its going to work as i have intended.

    Business of online services.

    1. Form a cyprus non-resident company and pay accountant firm to do all your tax related paperwork.

    2. Pay zero tax in Cyprus

    3. Send salary from your Cyprus company to yourself at home country and pay tax on it at home.
     
  2. Admin

    Admin Forum Moderator The Forum Cleaner

    Thats proparly how it works. You just forget that profits that you keep in the Cyprus company and which are not taxed have to be taxed in your home country regardless if you take the home or not. This apply for most countries global wide.

    That's why you either need to make use of double tax treaty i.e. you pay a little tax in Cyprus and don't pay tax at home OR
    You register the company non resident and even use nominees to try to proof the company is controlled and managed in Cyprus and not under your control.

    You may even use other methods to proof that, but it's not to be discussed here.
     
    bountymounty and extremedox101 like this.
  3. bountymounty

    bountymounty Trusted Member Mentor Group Business Angel

    If you pay zero tax in Cyprus you can't do use of double tax treaty!
     
  4. negon

    negon Offshore Agent Mentor Group Business Angel

    That's how it can work at least!
     
  5. bountymounty

    bountymounty Trusted Member Mentor Group Business Angel

    did you go with a Cyprus company setup?
     
  6. realcat

    realcat Active Member Entrepreneur

    No, i decided there is no need for that. In my country you pay tax only on profit you take out of company, reinvested money is not taxed.
    Circumstances are good enough at home.
     
    blueweb likes this.
  7. blueweb

    blueweb Corporate Services Mentor Group Business Angel

    At least your learned how this works, so you may got something out of it :)