Sixty-Day Residency in Cyprus
By a recent change in the Tax Legislation of Cyprus, the Sixty-Day Residency, a great tax advantage has been granted to foreign citizens of any country to become tax resident in Cyprus and reap respectable tax benefits. This is facilitated of course, largely by the Cyprus Company Registration as you will see below.
Benefits of Sixty-Day Residency
The Sixty-Day Residency offers to a foreign citizen two great tax advantages:
- He can pay taxes on all his worldwide income in Cyprus and thus save himself from other jurisdictions including his own Country of origin, from painful tax bills.
- For fourteen years he will not pay any Defense Contribution Tax on his income. That is a special tax that is paid on dividends, interest income, rental income and other.
- He will be 50% exempt from taxes on his income over 100 000 Euro for the first 10 years! This is a big tax advantage. It means that if you would be in the 35% tax bracket, you will only be paying 17.5% tax!
*Note: You will need of course to open a Cyprus Bank Account to be able to handle all you tax and other business in Cyprus. That we can do for you fast, without any fuss. Just get in Contact with us and we will do all the rest.
Sixty-Day Residency Requirements
In order to qualify for the sixty-day residency you must be able to prove the following to the Tax Office:
- You are not tax resident in any other country. If you are you will have to deregister yourself from the Tax Records of that country.
- You don`t live for more than 183 days in any country. This must be taken care of again. You will have to prove it by presenting evidence, such as passport, air tickets, hotel bills, declarations by your lawyers or accountants etc.
- You must be employed in Cyprus or to have a business in Cyprus. This is what we mean by the Cyprus Company Registration. If you register a company in Cyprus that is considered as having a business in Cyprus. A company in Cyprus offers you great tax, legal and administration benefits. One of the greatest is the very low Cyprus Corporate Tax Rate which is only 12.5% ! Plus 0% tax on dividends paid in or out!
- Finally you will have to stay in Cyprus, at least 60 days in the tax year in question. You will of course need to get a Cyprus Work Permit is you intend to be employed in Cyprus. Our Firm will be glad to advise, assist and support you to get that visa.