Cyprus “Non-Dom” Status Boosts Cyprus Company Formations
April 2017
The new status of a physical person, enacted in Cyprus by the Law 119(I)/2015, as “tax resident but non-domiciled” has already boosted the interest of foreign investors to permanently reside in Cyprus, invest in Cyprus, incorporate a Cyprus Company and enjoy the benefits that the island of Cyprus has to offer.
The Law, which was enacted on 16/07/2015, gives significant advantages to foreign investors in contrast with what was in force before.
What was in force before the new legislation for individuals?
- A non-tax resident physical person had no obligation to pay Special Defence Contribution (SDC is a tax imposed on income from dividends, interest and rentals earned from both Cyprus and worldwide sources)
- A tax resident physical person had the obligation to pay Special Defence Contribution on income from dividends, interest and rentals earned from both Cyprus and worldwide sources.
What is in force following the new legislation for individuals?
- A non-tax resident physical person still has no obligation to pay as before
- A tax resident physical person has the obligation to pay BUT ONLY if he/she has his/her domicile in Cyprus.
Most foreign investors who were born and live outside Cyprus can qualify for the Non-Dom status. Therefore, by becoming a tax resident of Cyprus, but non-domiciled, you can enjoy tax free dividends, interest and rental income on a personal basis for the next 17 years. If the above is combined with a Cyprus company formation and by doing business worldwide through this Cyprus Company, an investor can enjoy 12.5% total tax, both on a company and on a personal level.
Contact our team to initiate the Cyprus Company Formation and start reaping the full benefits of an onshore, low-tax, EU jurisdiction. Simply fill in the contact box below or contact us by email on enquiries@fbscyprus.com
2nd Floor
BIONIC Building
3, Diomedous Street, Strovolos
2024 Nicosia
CYPRUS