Non Dom is Cyprus Golden Ace! It is the reason why so many wealthy individuals change their tax residency.
However, depending on the country of place of the individual different immigration problems & solutions apply to obtain the non-dom status.
What is the non dom- brief review
The non dom or formally"Cyprus Tax Residency but not domiciled, tax status" is a tax incentive introduced by the Cyprus government where someone who has not beemliving in Cyprus 17 out of the last 20 years and who is currently staying in Cyprus at least 60 days but does not stay anywhereelse for more than180 days (hence not resident elsewhere) can apply for this special tax status to enjoy worldwide tax dividends. Business ties with Cyprus must be proven.
- Read more about the non dom criteria, eligibility etc - Click here.
- Watch Videos on Non-Dom (Video 1, Video 2 ).
One of the main requirements for the non-dom status is to prove that the applicant has significant business ties with the republic.
This is commonly achieved by setting up a Cyprus company and being employed by it. The Cyprus company will provide its goods and services to its clientele globally and this is sufficinetto obtain the non-dom status.
The purpose of this article is to examine the immigration aspect of the non-domiciled applications.
Being employed by your Cyprus Company
Is this important for you?
- EU Citizens
Not a problem. If you want to be employed by your Cyprus Company then great!
It is easy obtaining a yellow slip and legalising your paperwork so as to be an employee of your Cyprus company to thus meet the requirements of the non dom status. A local address of residence is of courseneeded but there are no other hurdles in obtaining the legalisationof the paperwork for an EU citizen,
The process will entail obtaining Tax Identification Number (TIN) for the person, registering them with thesocial securities, registering thecompanywith the socialsecurities starting pay in the local payroll taxes evidence which will escort the non dom application for approval.
Things become a bit trickier when we are dealing with investors from 3rd countries though, as explained below.
- 3rd Country Citizens (non EU investors applying for non dom)
Becoming an employee of your company can be challenging!
3rd Country Citizens work employment is not so straightforward and we could argue rightly so as the EU wants to protect its workforce; it does so by applying strict requirements to non-EU citizens(irrespective of status) when seeking employment in the eurozone.
A yellow slip is will not suffice as it is not applicable.
Solution?
Cyprus has introduced specific schemes to attract high calibre workforce such as the BCS, Key Personnel Application & Nomad Visa.
More information about these available schemes can be learned by reading our website information by clicking here.
These solutions though are mainly targeted for headquarting solutions as Cyprus is a very attractive jurisdiction for it (read relevant article here) or for individuals who will obtain their paperwork via investment such as the permanent residency which requires an investment of Euro 300k.
In other words these schemes are of a more formal and permanent nature and thus more expensive.
These schemes / options leave individuals who simply want to exploit the non dom scheme with little options as without the above serious commitment they will not be able to register for social securities (thus being employed by their company, which evidences their stay in there public, strong economic ties with Cyprus etc - criteria the non dom application requires).
About Us
CYAUSE Audit Services has extensive experience in the insurance industry has helped tens of insurance brokers and agents register and get licensed by the local Cyprus regulator granting them passporting access to the rest of the European Union.
CYAUSE Audit Services is an Audit & Assurance firm with offices in Cyprus and the UAE. During 2015 we have been awarded by I.C.P.A.C and the A.C.C.A (local and international association of Chartered Certified Accountants) for the Quality of our Audit Services and our Office's Procedures.
Being a Truly International Audit & Assurance firm, we have associates from all over the world and we are constantly looking for new associates to expand our network further. At present, CYAUSE Audit Services operates internationally through its membership with BKR International amongst the largest American associations in the world, Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience. Our network covers almost 40 jurisdictions with over 2,000 professionals, it supports more than 10,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and processes at least 170,000 payslips globally.
CYAUSE Audit Services Ltd is also a member of BKR International one of the biggest US Accounting Associations of the word and the 3E Accounting Network, an international accounting network which originates from Hong Kong and has more than 80 members from all over the world.
Learn More about Cyprus Corporate Environment
Information about CYAUSE Audit Services and the Cyprus Corporate & Tax System can be obtained from our Website or our YouTube channel which provides valuable information about the Corporate & Tax Environment of Cyprus.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
