Cyprus is increasingly becoming an attractive destination for expatriates and high-net-worth individuals due to the favourable Cyprus Non-Domiciled (Non-Dom) tax regime. But what makes this Mediterranean paradise a top choice for financial optimisation?
What is the Cyprus Non-Dom Status?
The Cyprus Non-Dom regime, introduced in 2015, offers significant tax advantages for individuals who choose Cyprus as their residence. This tax strategy exempts Non-Doms from the Special Defence Contribution (SDC) tax on dividends, interest, and rental income. Without wealth and inheritance taxes, it is a unique offer in Europe—comparatively more advantageous than similar regimes in countries like Ireland and Malta.
How does Cyprus Compare with Ireland and Malta?
When comparing the Non-Dom regimes across Cyprus, Ireland, and Malta, several distinct differences emerge:
Non-Dom Status Duration: Cyprus offers an unlimited Non-Dom status, unlike Malta, which imposes a time limit, affecting long-term tax planning.
Tax on Foreign Income: Cyprus does not tax foreign income unless it is remitted to Cyprus, providing flexibility for offshore wealth management, whereas in Malta and Ireland, foreign income is taxed upon remittance.
Capital Gains Tax: Only applicable to Cypriot real estate and specific shares, Cyprus's narrowly-targeted capital gains tax presents an appealing incentive for global investors.
Why Choose Cyprus?
With its strategic location, simplified residency rules, and high quality of life, Cyprus is more than just a great tax destination. It's a hub for business and lifestyle benefits.
Low Corporate Tax Rates: At 12.5%, the corporate tax rate in Cyprus matches that of Ireland's, making it one of the most competitive in Europe. This is particularly attractive for those looking to establish or relocate their businesses.
Residency Advantages: Flexible residency options, such as the "183-day rule" and the "60-day rule," simplify the process of becoming a Cyprus resident.
Is Cyprus the Right Choice for Your Wealth Management?
Cyprus stands out with its indefinite Non-Dom status, leading to robust long-term financial planning benefits. Coupled with no wealth or inheritance tax burdens, it’s an enticing jurisdiction for individuals and families looking to safeguard their wealth and pass it down generations effortlessly.
Would you like more information or assistance regarding the Cyprus Non-Dom status or residency options? Don't hesitate to reach out to Tsitsios & Associates LLC at info@klztlaw.com for expert guidance tailored to your needs.
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