A residence permit of the Republic of Cyprus, granted to foreign buyers or tenants of real estate who conduct their business here, makes it possible to obtain the status of a tax resident of the island.
This status has many advantages for persons engaged in entrepreneurial activities or heading companies with local registration, due to a flexible taxation system, complete confidentiality of personal data and a number of benefits. Based on this, more and more representatives of Russian and Ukrainian business circles are thinking about transferring their tax residence to Cyprus.
A foreigner applying for tax residency in Cyprus is required to fulfill the following mandatory conditions:
• residence in the country for at least 60 days during a calendar year;
• availability of a title deed or a long-term rental contract for at least one year;
• lack of tax resident status in other countries, the period of residence in which must not exceed 183 days a year at the time of application.
However, even if these requirements are met, a foreign citizen will not be able to become a tax resident if he ceases his business activity in Cyprus or if he has lost a management position in his own company.
Another important condition is to confirm the legitimacy of the sources of income and the origin of funds; due to the recent corruption scandals, due to which the Citizenship-for-Investment program was suspended, this will receive special attention.
It usually takes 2-3 months to consider an application and issue a Cyprus tax resident certificate, after which a foreign investor can enjoy all the benefits of local jurisdiction. In particular, we are talking about exemption from taxes on global income, profits from the sale of shares and securities, as well as a 50% discount on income tax in Cyprus for individuals for the next 10 years from the date of obtaining a new status.
Cyprus is one of the few EU countries that provide the opportunity to obtain a residence permit when buying real estate for a certain amount.
with our Cyprus property catalog
APL Alexander Real Estate Ltd