If a EU national doesn't work and comes to Cyprus with individual stocks (for example only foreign listed stock market companies, such as Microsoft) worth 500.000 euro, which were bought for 200.000 euro 5 years before.
This would be real residence, more than 183 days per year, with longterm rental contract. So no permanent travelling or trying to avoid residency rules.
I don't trade, maybe I do 1 stock transaction every 4-5 months.
How are you taxed in Cyprus as a non-dom?
I know there is the 2,65% Gesy contribution on the dividends that one receives from the stocks.
There is no capital gains tax (let's say I sell the Microsoft stock for 600.000 euro 1 year after having non-dom residency in Cyprus).
But I get conflicting information about the sole-trader/social insurance bit.
- 1 Belgian lawyer said not to bother with Cyprus, because I would have problems opening bank accounts elsewhere in the EU or even keeping my bank accounts.
He suggested Portugal or Bulgaria. Which was quite stupid because Portugal's NHR system explicitly excludes stock capital gains, so they are taxed.
I guess he just wanted to sell me his Portugal/Bulgaria relocation/immigration/company formation services (which he didn't do for Cyprus).
- 1 Cyprus lawyer I contacted said I would only have the 2,65% on dividends, and further nothing because I am an individual who is not doing anyting of 'trading nature'.
- Here on the forum @CyprusLawyer101 and @CyprusLaw say that you will be considered as sole trader and have to pay social insurance contributions, and therefore a Cyprus company would be better.
But: is this the same as the Belgian lawyer who just wants to sell further services like company registration?
And how would the current (non-realized) capital gain be treated in Cyprus if I put the 500.000 euro stocks into the Cyprus company? This would constitute a realized gain for the individual in a lot of countries, so this wouldn't help at all.
This would be real residence, more than 183 days per year, with longterm rental contract. So no permanent travelling or trying to avoid residency rules.
I don't trade, maybe I do 1 stock transaction every 4-5 months.
How are you taxed in Cyprus as a non-dom?
I know there is the 2,65% Gesy contribution on the dividends that one receives from the stocks.
There is no capital gains tax (let's say I sell the Microsoft stock for 600.000 euro 1 year after having non-dom residency in Cyprus).
But I get conflicting information about the sole-trader/social insurance bit.
- 1 Belgian lawyer said not to bother with Cyprus, because I would have problems opening bank accounts elsewhere in the EU or even keeping my bank accounts.
He suggested Portugal or Bulgaria. Which was quite stupid because Portugal's NHR system explicitly excludes stock capital gains, so they are taxed.
I guess he just wanted to sell me his Portugal/Bulgaria relocation/immigration/company formation services (which he didn't do for Cyprus).
- 1 Cyprus lawyer I contacted said I would only have the 2,65% on dividends, and further nothing because I am an individual who is not doing anyting of 'trading nature'.
- Here on the forum @CyprusLawyer101 and @CyprusLaw say that you will be considered as sole trader and have to pay social insurance contributions, and therefore a Cyprus company would be better.
But: is this the same as the Belgian lawyer who just wants to sell further services like company registration?
And how would the current (non-realized) capital gain be treated in Cyprus if I put the 500.000 euro stocks into the Cyprus company? This would constitute a realized gain for the individual in a lot of countries, so this wouldn't help at all.
