Benefits of Obtaining Cyprus Tax Residency Status
How to Properly Obtain Cyprus Tax Residency to Maximize Its Advantages?
Relocating tax residency to a low-tax jurisdiction is a popular request among entrepreneurs. However, before obtaining this tax status, it is essential to follow several steps, understand the requirements, weigh all pros and cons, and gather all potential benefits for yourself, your family, and your business under one status.
Learn more about Cyprus tax residency status and taxes in Cyprus »
Benefits of Cyprus Tax Residency for Beneficiaries
Cyprus offers unique opportunities for individuals seeking to optimize their tax obligations and conduct business in an international environment. One of the key advantages is the possibility of becoming a Cyprus tax resident by meeting minimal requirements.
1st Advantage:
You can obtain Cyprus tax residency status even by residing in the country for only 60 days per year. Moreover, the tax residency certificate can be issued at any time of the year after submitting your application and meeting the following conditions:
- A registered company in Cyprus
- A director position held by the applicant
- The company must have a physical office, either rented or owned
- A corporate bank account and a personal bank account for the beneficiary
- Residency permit obtained through employment in your own company
- A residential address in Cyprus, either rented or owned
Once all these conditions are met, you can apply for and receive the Cyprus tax residency certificate.
Benefits of Cyprus Tax Residency for Businesses
2nd Business Advantage:
Based on our experience and comparisons with other low-tax jurisdictions in the EU (Madeira, Malta, Canary Islands), non-domiciled tax residency in Cyprus offers significantly more benefits for both beneficiaries and companies. Here are some key advantages:
- Corporate Tax Rate: 12.5%. This rate can be reduced to 0% under certain conditions for companies generating income from the sale of securities, stocks, and bonds.
- Tax-Free Salary Minimum: €19,500 per year.
- 0% Tax on Worldwide Business Dividends: Regardless of the country of income origin or income transfers to Cyprus from other companies owned by the beneficiary, a 0% rate can be achieved with proper corporate and tax structuring while complying with double taxation avoidance laws.
- 0% Tax on Inheritance, Wealth, and Gifts.
Read also: How to Register a Company in Cyprus in 2025.
Benefits of Cyprus Tax Residency for the Beneficiary’s Family
3rd Advantage for the Beneficiary’s Family:
Cyprus offers not only unique opportunities for the beneficiary but also significant advantages for their family. With flexible legislation and high living standards, relocating to the island becomes comfortable and beneficial for all family members.
- Residence Permits for the Whole Family:
Family members of the beneficiary, including spouses and children, can obtain a residence permit (temporary or permanent). This allows the entire family to relocate and legally reside in Cyprus. - Access to Healthcare and Education:
Beneficiaries and their families gain access to Cyprus’s healthcare system and educational institutions. The high level of education makes Cyprus attractive for families with children of all ages. - Safe and Comfortable Living Environment:
Cyprus is known for its high safety standards, warm climate, and friendly atmosphere, making it an ideal place for family life.
Thus, Cyprus tax residency status not only provides favorable business conditions but also creates a comfortable and stable foundation for the entire family’s life.
Feod Group Services in Cyprus
- Developing relocation strategies for businesses and families, legal case evaluation, preliminary consultations on obtaining residence permits and citizenship, corporate structure analysis, and providing recommendations on tax matters and asset protection.
- Preparing immigration cases for families and businesses, full client representation in Cyprus by accredited lawyers.
- Business structuring, company registration, creating effective corporate and tax schemes, assisting with applicant document preparation, and opening bank accounts in Cyprus.
- Services for obtaining Cyprus tax residency status and assistance in exiting tax residency in the country of primary residence.
- Real estate services: conducting comprehensive due diligence, preparing contracts, participating in negotiations with property owners or sellers.
- Registering contracts with Cyprus government agencies and obtaining necessary licenses and permits for investments or business operations.
- Submitting residence permit applications and representing clients and their family members, obtaining certificates, permits, and accompanying clients in obtaining passports.
- Assisting with the enrollment of children in secondary schools and universities in Cyprus.
- Providing a full legal concierge service for all matters related to relocation and adaptation in Cyprus.
If you want to learn more about the opportunities for tax residency in Cyprus and evaluate how beneficial it can be for you and your family, contact us for a consultation!
Get in touch with us for professional tax and immigration advice in Cyprus!
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