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Efstathios K. Efstathiou > Articles (Page 2)
25 September
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Demystifying Tax Residency in Cyprus: A Comprehensive Guide

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Introduction Cyprus, with its favorable tax regime and strategic location, has become an attractive destination for individuals seeking tax residency. Understanding the concept of tax residency is crucial for those considering establishing themselves in Cyprus. In this comprehensive guide, we aim to demystify tax residency in Cyprus and provide essential information for individuals interested in this aspect. Definition of Tax Residency: Tax residency refers to the determination of an individual's tax obligations based on their residence status in a particular jurisdiction. In Cyprus, tax residency is determined by the number of days an individual spends in the country during a tax year. ...

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25 September
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Complete Guide to Permanent Residence Applications in Cyprus

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Introduction Cyprus, known for its desirable lifestyle, Mediterranean climate, and thriving business environment, attracts individuals seeking permanent residency in a welcoming and prosperous country. This article serves as a comprehensive guide to help you navigate the process of Permanent Residence Applications in Cyprus. Permanent Residence Permit Categories: Cyprus offers several pathways to obtain permanent residency. Understanding the available categories can help determine the most suitable option for your circumstances: a) Category F: This category is designed for individuals who wish to retire in Cyprus. Applicants must meet specific financial criteria and demonstrate a stable annual income from sources outside Cyprus. b) Category 6(2): Individuals...

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25 September
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Company Due Diligence in Cyprus: 5 FAQs

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Introduction Due diligence is a process that helps businesses minimize risks and make informed decisions when entering into partnerships or business transactions. Conducting due diligence in Cyprus is crucial for businesses to ensure regulatory compliance, verify financial information, and identify potential legal or reputational risks. In this article, we answer five frequently asked questions about company due diligence in Cyprus. What is company due diligence? Company due diligence is the process of assessing a company's financial, legal, and operational aspects to evaluate its stability, reputation, and compliance with regulatory requirements. Due diligence involves gathering and analyzing information to mitigate risks and make...

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25 September
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5 Things to Know About Obtaining Employment-Based Permanent Residency Permit in Cyprus

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Introduction   Cyprus, with its thriving economy and favorable business climate, offers attractive employment opportunities for individuals seeking to establish long-term careers in the country. If you are interested in obtaining an employment-based permanent residency permit in Cyprus, there are important factors to consider. This article presents five key things you should know about the process. Eligibility Criteria: To be eligible for an employment-based permanent residency permit in Cyprus, certain criteria must be met: a) Valid Work Permit: You must first obtain a valid work permit, demonstrating your employment status in Cyprus. b) Years of Continuous Employment: Typically, individuals must have been employed in Cyprus...

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27 September
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Cyprus Tax Residence status for individuals by the 60 Days Rule

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The Parliament of Cyprus has approved by common consent the proposal of amending the rules for determining the tax residency of individuals in Cyprus - 60 days tax residency Cyprus Under the currently existing law, individuals are considered tax residents in Cyprus if they were physically present for at least 183 days per year. Under the new revised conditions an individual is considered a Cyprus Tax Resident if the following three criteria are cumulatively met: 1. They remain in Cyprus for at least 60 days a year of assessment. (60 days tax residency cyprus) 2. They carry out any business in Cyprus; and/or work...

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27 September
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The Cyprus Non-Domiciled Tax Status

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An individual enjoys the Cyprus Non-Domiciled Status whether they are a tax resident of Cyprus or have not been a tax resident of Cyprus as per the Income Tax Law for a period of 20 consecutive years prior to the introduction of the law (16 July 2015). An individual is considered a resident for tax purposes of Cyprus if they are physically present in Cyprus for an accumulated period exceeding 183 days during a calendar year or 60 days under the 60-day rule, maintains a permanent residential property (owned or rented), does not reside in another state for an accumulated period...

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27 September
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Cyprus Tax Advantages

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The Cyprus Tax Regime is set to provide a business-friendly environment In Cyprus, taxation of business profits is 12,5%. Cyprus is probably the best place to do business in the EU. Because of the business-friendly Cyprus Tax Regime, there are around a thousand companies registered every month in Cyprus. Cyprus dismissed its “offshore” legislation in 2002-2003. A new system of EU-conform tax advantages has been set up and refined daily. The Cyprus Tax Regime: Some of the many tax advantages that Cyprus Companies benefit from: ● differentiation of ‘tax residents’ and ‘non-tax residents’ ● corporate tax is only 12,5 % ● very low tonnage tax for ship-owning and...

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27 September
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An Overview: Cyprus Offshore Company or IBC

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Since joining the European Union in 2004, Cyprus is not an offshore jurisdiction or tax haven anymore. All company and entity formations in Cyprus are considered onshore (companies’ tax residences are in Cyprus). Therefore, the term Cyprus IBC (Cyprus International Business Company) or Cyprus Offshore Company is not applicable anymore. The word Offshore Company is commonly associated with ‘tax havens’, being misinterpreted as illegal. Offshore simply means that a company is registered in a low tax/non-tax jurisdiction and is not tax resident in the country where it is registered. Offshore Companies are not allowed to conduct business within the country of...

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27 September
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Cyprus Tax Residency and Place of Business (“Substance”)

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Cyprus Tax Residency: Where will my Cyprus Company get taxed? The definition of tax residency of companies varies by country. Generally, companies are liable to pay tax on their taxable profit in the country where they conduct business and generate profit, and/or where management decisions are taken. The following are important points related to Cyprus Tax Residency: Some countries (Cyprus, Malta, and others) are focusing on the place of management in order to determine the tax residency of a company. In said countries, the place of management is generally defined by the residence of the majority of a company’s directors. A company’s tax residency...

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27 September
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Registration of Cyprus Offshore Company or International Business Company (IBC)

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A Cyprus International Business Company (IBC) does not manage or control the company in Cyprus as it is offshore. Membership in the European Union (EU) opens doors for doing business with other EU countries and companies. Cyprus IBC’s are separate legal entities resembling a private limited liability company. Registration of International Business Company (IBC) Benefits A Cyprus International Business Company (IBC) has the following benefits: • 100% Foreign Ownership: Foreigners can own all shares. • Limited Liability: A shareholder’s liability is limited to capital investment. • Privacy: Nominee shareholders are allowed anonymous ownership. • No Taxes: However, U.S. taxpayers and everyone obligated to pay income taxes...

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