Living in Dubai and create my company in Cyprus

[FRANCO]

Hi,
I am living in Dubai and I am starting a remote consulting business in IT in domains where it's not easy to find requested skills . To facilitate finding clients and because European companies don't like to contract with companies outside of Europ for IT services, I would like to create my consultancy company in Europe instead of UAE. I thought about Cyprus. I read about Cyprus taxes and that's what I found (please correct me if I am wrong) :
- A company is resident in Cyprus if it's controlled from Cyrpus.
Q1: This means that my company will not be resident in Cyprus, correct?
- A no-resident company in Cyprus pays taxes on revenues from Cyprus only. I don't have clients in Cyprus, my client are mainly in France, Belgium, Switzerland, ...
Q2: So my no-resident company in Cyprus will not pay taxes neither in Cyprus nor in any other country, correct? That seems to me a bit strange.
- My company will pay dividend to my personal bank account in Dubai. Since I am not resident in Cyprus, no taxes will be applied on these divendends by Cyprus. Dubai does not take taxes on dividend I receive, so I 'll receive 100% of the income of my companies with a real zero taxes.
Q3: 0% taxes seems to me a bit strange. Did I forget something?

Thanks

 

[CyprusLawyer101]

Hello - the Cyprus non resident company is no longer available as the legislation changed to include tax residency based on place of incorporation, unless management and control can be demonstrated elsewhere. In your case this might be doable but certain requirements shouls be met. If you are interested to exploring this, we can discuss over PM. Kindly let me know and i will contact you.

 

[JohnLocke]

In your case this might be doable but certain requirements shouls be met.

Just for the general public, what would such requirements be?

 

[CyprusLawyer101]

Just for the general public, what would such requirements be?

These have not yet been fully identified, hence suggesting to OP that we could explore it.

 

[Dandyline]

Hi,
I am living in Dubai and I am starting a remote consulting business in IT in domains where it's not easy to find requested skills . To facilitate finding clients and because European companies don't like to contract with companies outside of Europ for IT services, I would like to create my consultancy company in Europe instead of UAE. I thought about Cyprus. I read about Cyprus taxes and that's what I found (please correct me if I am wrong) :
- A company is resident in Cyprus if it's controlled from Cyrpus.
Q1: This means that my company will not be resident in Cyprus, correct?
- A no-resident company in Cyprus pays taxes on revenues from Cyprus only. I don't have clients in Cyprus, my client are mainly in France, Belgium, Switzerland, ...
Q2: So my no-resident company in Cyprus will not pay taxes neither in Cyprus nor in any other country, correct? That seems to me a bit strange.
- My company will pay dividend to my personal bank account in Dubai. Since I am not resident in Cyprus, no taxes will be applied on these divendends by Cyprus. Dubai does not take taxes on dividend I receive, so I 'll receive 100% of the income of my companies with a real zero taxes.
Q3: 0% taxes seems to me a bit strange. Did I forget something?

Thanks

Think about the PE rules in UAE now with the new CIT.

 

[FRANCO]

Thanks for your responses.
I am going to contact you cyprusLawer.

>> Think about the PE rules in UAE now with the new CIT
What's PE and what's CIT ? Are you talking about the taxes that compnies ub UAE will have to pay starting from June 2023? As far as I know, companies in freezones are not impacted in these changes, am I wrong ?

By the way, I am not sure I am going to create a company in the freezone in UAE, I can just be individual and receive dividends from my cyprian company.