Tax Residency

Cyprus is becoming an increasingly attractive destination—not only for its year-round sunshine, golden beaches, clear turquoise waters, delicious food, and warm Cypriot hospitality, but also for those looking to change their tax residency and take advantage of the island’s favourable tax benefits. We are seeing more and more people take that step and become tax residents of Cyprus.

Here’s why:

The corporate tax rate is a flat 12.5% which is one of the lowest in Europe
Intellectual Property rates are just 2.5%
New tax residents are entitled to non-domicile status for 17 years which entitles them to be exempt from paying dividend tax worldwide
There is no inheritance tax
When selling shares of a company there is no tax on profit

There are four conditions to becoming a tax resident in Cyprus

You must register a company in Cyprus
You must have an address in Cyprus (this can be a rental or owned property)
You must reside in Cyprus for a minimum of 60 days per year
You must not spend longer than 6 months in the country of your previous tax residency

If you would like more information about tax residency or would like an introduction to a trusted tax expert, please feel free to get in touch.