The issue

Our client, an EU citizen high net worth individual with investments and assets spanned around the globe, was looking for a suitable EU jurisdiction to consolidate his holdings, relocate his family and become tax resident.

The solution

Together with his foreign advisors, we detailed the provisions of the Cypriot non-dom regime, explained how his assets and investments can be consolidated via Cyprus and why Cyprus is a favorable jurisdiction to relocate his family.

Once the client approved the move, we assisted with all matters in relation to the relocation (permits, housing, schools), restructured his private and business holdings via a Cyprus holding companies and registered him as a Cyprus tax resident.

Result

At a personal level:

  • As a tax resident non-domiciled individual, the client shall be exempt from any dividends from his Cyprus holding companies (as well as foreign companies) for 17 years.
  • Future capital gains made from the disposal of his shares will be completely exempt from Cyprus tax.
  • 50% of the remuneration he gets from his employment under a Cyprus company will be tax-free for 10 years.

At a business level:

  • Replacing his offshore companies and structuring his holdings via the Cyprus holding companies resulted in tax savings on foreign withholding taxes.
  • Dividends received by his Cypriot holding companies from the foreign trading subsidiaries will be exempt from tax in Cyprus.
  • The payment of dividends to him will not be subject to any tax in Cyprus (as he is a non-dom resident).

You can read more here as to why Cyprus is the destination of choice for doing business.

Contact us

Should your circumstances resemble the above, we are at your disposal to assist you and discuss your own circumstances.

Constantinos Markou
Director
Head of Tax Services
markou@atca.com.cy
+357 25661717