As you can see from my name I am in Cyprus and I deal with this things all the time. Thss is how it works hence why it is beneficial to set up a company as S.I is a major expense.if that would be the case then cyprus would have absolutely no advantage for investors whatsoever. hence i doubt this is true. we're just talking shit online, and that is fine. i will find out once i land there next year and figure things out from a local tax authority. i am merely disagreeing with your statements based on what i read so far, how european union works and my own logic and perception, that's all. no hate.
I suggest you discuss directly with a tax advisor so that you have the correct advice on the matter. I don't think that you read anywhere online that you can earn income without registering as a sole trader.
My issue is that statements which are not accurate are made and this may create confusion to other readers.