We set out below the procedures to be followed by an EU citizen in order to register for tax purposes in Cyprus as an employee of a private company. The tax residence registration procedure involves registrations and attendance to a number of authorities and organizations.
PLACE OF RESIDENCE
The first step in acquiring your tax residence in Cyprus is to locate a suitable residential property for rent or acquisition. The time spent to locate a suitable property depends on your personal preferences and availability of real estate at the time of your request.
We can directly assist to identify a suitable residential property according to your needs, draft or review the relevant rental agreement, transfer the utility bills on your name as well as certain other ancillary actions. Note that the acquisition of property requires certain additional actions.
REGISTRATION TO THE SOCIAL INSURANCE DEPARTMENT
On the basis that you will be employed by a Cyprus company, you will have to register with the Cyprus Social Insurance Department. To do so we will present your employment contract with the Cyprus company (employer). The Social Insurance Number is generally issued within 3 working days.
We can directly assist in preparing or reviewing your contract of employment, register you to the Cyprus Social Insurance Department and making the payments to the Social Insurance Department on behalf of the employer company. If you plan to be employed by your own company, we can directly assist with the formation and annual maintenance of the Cyprus company including all related matters (e.g. registrations to the Tax Department and Social Insurance Department, tax and audit compliance).
REGISTRATION TO THE MIGRATION DEPARTMENT
Within 4 months of your visit to Cyprus, you need to register with the Migration Department by attending a 5 minutes meeting accompanies by us.
To register as an employee, we need to furnish the Migration Department with your employment contract, rental agreement and evidence that the first payment to the Social Insurance Department was made. At the same time, your employer company needs to issue you a confirmation of engagement.
Usually, within a couple of weeks, the Department will issue a registration certification and a relevant registration number.
We can directly assist with your registration to the Migration Department. Initially, we will request a meeting with the Immigration Department. To do so we simply need a copy of your passport. The meeting will take place within a month of the application date and you will attend in person escorted by us.
REGISTRATION TO THE TAX DEPARTMENT
Once you obtain your registration number from the Migration Department, you need to register to the Cyprus Tax Department and obtain a Cyprus Tax Identification Code/Number. The issuance of the Tax Identification Number usually takes 3 working days. Once the Cyprus Tax Number is issued, we will register you as a Non-Dom person by filing the relevant documentation.
We can directly assist with your registration and obtaining you a tax registration number as well as filing your annual income tax returns, facilitating the payment of your tax liability and keep you in compliance with Cyprus tax laws.
THE NON-DOMICILED PROVISIONS
The non-domiciled provisions, exempt high net worth individuals and entrepreneurs from Cyprus taxes on any dividends and passive interest earned from any source. At the same time, the absence of capital gains tax on the disposal of shares and the absence of wealth and inheritance tax make Cyprus a very promising alternative for people looking for a tax-friendly home. Moreover, in order for companies to enhance their corporate presence in Cyprus, the law includes several provisions facilitating the relocation of employees, a notable example the exemption of 50% of the income for any executive earning more than €100.000 per annum.
We can review your position to make sure that you claim all available exemptions and deductions under Cyprus law and your tax compliance requirements are fulfilled.
Contact us should you wish to discuss the above matters.
Head of Tax Services