To qualify to use the non-domicile program, you have to meet certain qualifications such as not having a tax residency in any other country. Not residing in another country for more than 183 days continuously, and having been a resident of Cyprus for more than 60 days.
If, in the tax year, you have had an employment contract, have been a director of a tax resident company, or is a business owner, then you can also be part of the program. It’s important to note that the departure or arrival days aren’t counted as part of the 60 days or the 183 days. Once you qualify, your profits from securities like bonds and shares will not be taxed together with any repatriation income, such as profits from royalties and interests.
Personal income tax will also be exempted if the employment is outside Cyprus, and the employer was a Cyprus tax resident for more than 90 days in a tax year. You will also enjoy low social insurance contributions and tax exemption from gifts, wealth, and inheritance. With all these benefits, Cyprus is a great place for investors, entrepreneurs, freelancers, and artists as well as high net worth individuals.
The Double Taxation Treaties that Cyprus has with over 60 countries mean that you will only be taxed once if you come from any of those countries. This is one of the reasons why people from countries like the UK prefer to retire and invest in Cyprus. The resolve of the government to implement policies. That favor such investors also contributes to building a good reputation for the country and making it one of the preferred destinations For the expats. Since 2015, the non-Dom program has also made the region the perfect target for foreign investors.
The objective of the program is to attract wealthy foreign investors to Cyprus and help boost the economy of the region. With wealthy expats moving their businesses to Cyprus, it will soon become a global business center and a gateway to the European Union countries. While expats get their benefits, the country also benefits through improved quality of services and the availability of a wider variety of services. When expats bring their companies to Cyprus, they also widen the scope of businesses within the country and promote the growth of international standards of professionalism.
Even holding companies can benefit from the tax legislation in the region. Holding companies can take advantage of the double tax treaty and withhold tax at low rates or use conditions that allow the exclusion of incoming dividends from taxation. Another option is for the holding companies to give the dividends to non-resident shareholders without any tax charges. Personal income tax is another area where the program is very beneficial. The income tax is tiered with the maximum rate being at 35% for those earning more than 60,000 euros. For those who want to register as self-employed, you have to do it as someone who is well off financially to enjoy the tax advantages.
The opportunities that Cyprus offers companies and individuals are unlike any other. The country has advanced systems in different industries ranging from banking systems to legal systems, and it is also a great connection point to other European countries. These, together with the tax-friendly policies and the amazing natural landscape and resources, make it a place worth living or investing in.