If you are currently a UK non-domiciled individual looking to move your tax residence to another country, you would be well advised to consider Cyprus as one of your alternatives. Cyprus has its own Non-Dom tax regime which is automatically applicable to all foreign individuals becoming tax residents of Cyprus.
As from 1 January 2017, it is no longer necessary for an individual to be physically residing in Cyprus for more than 183 days in any one calendar year to become tax resident. If the said individual does not remain in any other country for more than 183 days in total during any given tax year, he/she may be considered a tax resident of Cyprus provided the following conditions are cumulatively met throughout the tax year in question:
- The individual resides in Cyprus for at least 60 days in the year of assessment;
- The individual carries out any business in Cyprus and/or is employed in Cyprus and/or holds an office (e.g. being a director) to a person (e.g. a company) resident in Cyprus at any time during the year of assessment; and
- The individual maintains a permanent residence in Cyprus, either owned or rented.
Non-Dom resident persons are specifically exempt from Cyprus taxation on dividends and interest, irrespective of the source country and irrespective of whether the funds are remitted to Cyprus or not. Furthermore, there is a complete tax exemption on all gains from sale of shares and other qualifying titles as well as from capital gains which do not relate to immovable property situated in Cyprus. Furthermore, there is no inheritance tax in Cyprus.
Calmco would be happy to provide additional information and assistance to individuals wishing to become tax residents of Cyprus.
