Cyprus is one of the EU state member countries with the lowest tax jurisdictions, and that’s one of the reasons why most entrepreneurs prefer it to other countries. The tax rates don’t just attract high net worth individuals but companies as well. With the rule that requires Non-Dom tax residents to pay taxes in Cyprus on global income, this place has become an ideal country for people to settle down in as well as run businesses. Some of the benefits that this program has included tax freedom within the EU. Accessibility of healthcare and social security, as well as the ability to avoid exit taxation in some countries like France.
Other than the non-Dom tax program, Cyprus has a lot of many other benefits that make it a great place to live. The island has Greek and Turkish languages, but most residents also speak English. They also have political stability and low corruption rates, which is ideal for the safety and security of the residents with its great climatic conditions, which include sunny days for over 300 days a year. The region is a great place for getaways as well. Getting around to other major cities is also easier because of available direct flights, and that makes business transactions in other areas easier. However, the sunny climate means that the place can become very hot, especially during the summer. You also have to remember that you can only be a Cyprus tax resident if you have been in the country for more than 183 days.
One of the main benefits of the program is low tax rates, which can be as low as 5% or even less, and another one is the minimum presence, which the new rule requires to be 60 days. The program is also great for long term investment since it can go for as long as 17 years, and the availability of wide health care options that the program allows access to is also a great advantage. The program is only ideal for those who come from non-European countries, especially those that experience difficulties because of high tax rates and high bureaucracy levels. Corporate organizations that risk exit taxes when changing their residency to non-European countries can also benefit from the program. On the other hand, those who come from European countries are not considered domicile and, therefore, cannot use the program.
Cyprus limited is the first model of the program, followed by sole proprietorship and high net worth individuals. The non-Dom program is for those who have no ties to Cyprus in any way. The system is considered to be a continuation of a system that as used by British colonialists, and it is only for people whose parents aren’t from Cyprus, weren’t born in the country, and didn’t grow up there. This means that even if you weren’t born in the country, but you lived there for some time, then you cannot qualify for the program. However, if you qualify, you can start enjoying the benefits above as well as lack of remittance-base taxation.