Cyprus Lowest Tax in Europe for Digital Nomads & Investors
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- Опубліковано 16 жов 2024
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Today we are going to talk about possibly the Lowest Tax Option in Europe for Digital Nomads, Location-independent workers, the option is also good Investors and Business Owners.
Which place are we talking about? Cyprus!
On this channel, we are trying to cover the lowest tax options in Europe, as well as around the world. We will talk about Malaysia, Thailand, Panama, Paraguay, etc. We've already talked about some good tax options in Malta, Slovenia, Romania, Portugal, and UAE.
Today there are many people who are location independent workers - freelancers, digital nomads, online business owners, etc. For these people, who are actively making income Cyprus Non-Domicile Program might be an amazing fit.
Like we mentioned in one of our previous videos, you can be a resident without being a domicile. This means that you live in the country but you are not a citizen of that country (you don't have a passport).
In Cyprus, this program is granted to you for a period of 17 years. This is longest than most other programs that the EU offer.
What do you need in order to qualify?
1. You'd need to spend 60 days out of the year in Cyprus, which is great.
2. You can't spend more than 183 days in another country, and you can't be a tax resident in another country.
3. You need to either maintain the place that you rent full time in Cyprus, or you have to own a place locally.
4. You have to have a company or an employment contract.
We are going to do a video about this residency program in the future, where we'll be explaining step by step how to qualify.
What are the benefits of the Cyprus non-domicile residency program?
-NO TAX on Dividends (you can receive them from local or foreign company tax-free)
-Capital Gains and Interest are both TAX Exempt
-Possibility of having TAX Exemption on your SALARY from a foreign employer (not many countries will offer something like this)
-No inheritance or Wealth tax
Who are we and what do we do?
We are Offshore Citizen team. We help people become global: get a second passport, set up a second residency, pay less taxes, do banking abroad, etc.
We have lots of interesting articles on different topics, we have relevant information up to date.
Author: Michael Rosmer
Feel free to join our community!
Don’t forget to subscribe to our channel
/ @offshorecitizen
I like those Digital nomad videos, it's totaly relevant and on point. Keep up
Thanks I'll see about making more
Any digital nomad questions you've got?
@@MichaelRosmer So currently I live in Slovakia ( 20% VAT and 20% income tax) and make income through selling online courses (not country-based). In the upcoming summer, I plan to start the nomad lifestyle and my first destination is Bali. I would like to figure out a system that would allow me to pay less in taxes because honestly, this is just a lot. Any tips on where to start and how to manage everything properly? Thank you
@@REGDO your first step is to become non-resident of Slovakia, which is often trickier than being resident somewhere else.
Everything becomes easier when you start being nomadic though if you can severe your ties with home.
@@MichaelRosmer In regards to Slovakia there is also social insurance and medical insurance that needs to be paid unless you prove that you're paying it in another country. If you have more information about these two... I would really appreciate it ✌️
I'm curious about comparing Cyprus to Italy for digital nomads. I understand Italy has a 5 year digital nomad visa in which they only tax 30% of your income (10% in the south). Is Cyprus taxation still better than Italy for digital nomads? Also, is there double taxation with the USA or do Cyprus and the US have a DTA? If they have a DTA, wouldn't I just pay taxes in the US since I'm a US citizen?
Tax-free? The BEST phrase in the English language!
Thanks! I've been watching a lot of your videos. This is great to know!
Glad you enjoyed it
Sounds very tempting... thanks for all the details!
Thanks for the video. Like your content.
A key question I think is when does it make (financial) sense to optimize one's setup given the cost of doing so.
Would be cool if you could give an overall cost of some of these programs with a breakdown of costs, e.g.
1. Visa costs
2. Company setup costs
3. Annual accounting/legal costs
4. Cost of your services
5. Other costs?
Maybe you could run some case studies:
e.g. 40yo Man from country W who is partner in a business in country X, receives salary/dividend Y, has crypto gainz Z etc..
Then can weigh this up with other considerations like dating, weather, etc.
Probably if viewers had an idea of likely costs they would be more likely to start the process at the appropriate time.
Cheers
Thanks great suggestion, will do
I don’t get it, what program, status, visa or circumstance are you describing in the video? You speak of advantages and disadvantages of short permanence in Cyprus, but don’t describe the context properly.
Is it a tax residency application? It can’t be, because you say that a requirement is not being a tax resident elsewhere.
Is it a nomad visa? If so, could you share a link as details, please?
I’m coming from a tax residency (183d+) in Georgia and looking at my options for another in 2023.
Thank you.
Suggestions for future video:
1. Freelancer(digital/online work w/o office needs) - what type of company to register? And does a freelancer has to register a company and then hire themselves as an employee in order to work as a freelancer? How does a freelancer pay social and health tax or any tax?
2. Which countries are best for registering company as a digital nomad? And again which type of company would you recommend for a freelancer (digital/online work)?
(for both topics it would be a 1-person company, no need to hire people but just to work as a freelancer legally)
All great suggestions, thank you!
Added to the list, stay tuned :)
Лора, здравей. Получи ли отговор на тези въпроси? Имам абсолютно същите въпроси и не мога да намеря отговори никъде.
@@PaulKalak Не съм все още 😁. Като цяло зависи от д-вата, както и оборота който ще правиш, в някои случаи може да се спестят пари за данъци ако си фрийленс, в други ако си създадеш фирма. Най-добре е да се направи лонсултация с локален счетоводител.
Но ако вие намерите отговори на някои от тези въпроси, може да ги линкнете тук в коментар. 🙂
I’m here studying 🙏
Great content. Looking forward to the future more in depth video.
Very valuable content! Could you please make a similar video about Isle of Man in more detail like this? I am so confused as I read many different things about taxation there, specially if you would be a non-resident, but created a company there which is “tax resident”. Btw I have online business and would still live in UK phisically. Many thanks🙏
Hi, you didn't mention anything about the SDC (special defence contribution) which taxes dividends at 17% and interest at 30%. That kind of makes cyprus unattractive doesn't it?
Seems my questions would warrant a consult. I own an S-Corp in the US whereby I do software development consulting (NYC). My engagements are corp-to-corp transactions. I've learned from reading some literature that having the Tax Residence & the Corp be in the same place may not be Ideal. So, for example I'm thinking of offshoring my Corp to Belize, moving to a place such as Cypress. Many times, this ends up being even more of a Tax friendly situation. One of my concerns is finding the Tax Attorneys that have the expertise to handle these situations to be compliant. A regular Joe isn't going to cut it in many instances. Also, I would like to make investments in securities that are not subject to any US tax. Can I get onto other stock exchanges from Cypress.
To get personalized advice book a call with Michael:
calendly.com/michael-rosmer?month=2021-03
Would you recommend Plovdiv or Sophia for someone looking to build a tech startup?
Great question. If you're asking which of them is better is suggesdt probably Sofia simply because it's a much larger talent pool, better connected for travel, and better for networking.
That being said I think part of the question is also where would you prefer to live, which is really personal. A lot of people will say Plovdiv has more soul than Sofia and is slightly less expensive. Personal preference in that regard.
@@OffshoreCitizen Personal preference would be Plovdiv but even from a biz perspective, it would seem to be about 25% less expensive. Of course, most of this is only going off of videos that I've watched so far, but I keep seeing repeated references to the mousetrap area and how "young people" seem to be attracted to the area. The question is will it also lure young technical people. AND can I then lure talent from the US to the area as well. Hoping to do a scouting trip this summer but with covid things are kind of up in the air.
@@denoftools what's the interest in getting people from the US?
@@MichaelRosmer I have a background in tech and I have a lot of senior-level contacts in SV. I'm hoping to get some of them to invest some time and while remote can work I've found that being local really can help at startup and other critical junctures. I've done this before, start with a good local group and then inject some top tier talent to jumpstart the project.
@@denoftools very cool hope it works well for you
Wonderful and informative video. How does a Delaware LLC company stand if it has an office in Cyprus only (outside USA) and owner is Cypriot, and all its business activities and revenue is generated outside of Cyprus.
Hi Mike, been looking into this and sounds very promising. If you have an UK company, you spend 6 months in UK and 6 months in Cyprus. According to the DTA, if you spend more than 183 days in Cyprus, UK lose the right to tax your UK income. So you pay yourself a salary which is then taxable in Cyprus but 100% exempt because you did some of the work in the UK (more than 90 days). CFC rules wouldn't apply for various reasons mainly the 50% corporate tax rate (6.25%) provision. You could also have substance (employees) in UK to be safe. Am I missing anything? BTW if you pay yourself a maximum salary you won't pay corporation tax as it's deductible? Thanks!
Important point, you own a home in Cyprus but AirBnB your UK trip for the tie breaker in the DTA
So the only requirements are a rented apartment having a company there and staying for 60 days a year? Do i have to distribute myself a cyprus salary from that company and pay taxes on that?
I'll do a video going over the details of the residency programs but no you don't need to get a salary to be resident there.
@@MichaelRosmer Thank you looking forward to that
I guess you would need to prove substance of the company and one of the requirements is to have staff (at least one employee).
Awesome video. Tons of info I was looking for. “Requires maintaining an apartment in cyprus” - so even if you stay just 60 days per year do you need to keep an (empty) apartment there for the rest of the year?
However if you really pay no taxes and you can get a very cheap apartment it could make sense. I need to find out how expensive the rentals are.
How does this work for non-eu citizens? Doesn’t seem for there to be a way to fulfill the rental agreement without a residency permit. Also wouldn’t be able to work remotely in Cyprus during those 60 days and consider it related work in the country since no work permit
You would need to get a residency permit
would me selling products from china to USA clients constitute 0% taxation then? Can't i call the income I receive from my USA suppliers for the sales I give them a "salary" and therefore that income is tax exempt in Cyprus?
Also, if i form a cypriot company... and I'm the sole proprietor, isn't my income and profits also dividends, and therefore would all my income be tax exempt?
I find Cyprus very confusing.... I know it's very popular, but it also seems like one of the most complex places I've looked into.
Great video! I don’t suppose you know how much a shared managed office space would be per month?
Hi, just found your channel, very usefull infos , Cyprus attract me a lot.... but the non dom status, is only for those who want to relocate over there and open company? Or also for individuals that just would like to move to Cyprus an live off their dividends portfolios ? having the tax benefits , and spending for example 3 months per year in Cyprus and the rest of the year travel around the world...😊
thanks
Dear Michael, Million thanks for sharing your knowledge and wisdom!
2 questions:
1. I’m a (free to move) freelancer that gives social video services (at your service;) I work mostly solo so I’m not earning millions and also not having much expansas. Now I’m considering to apply for the "Digital nomad visa scheme” in Cyprus. Because it would cost less than to form and handle a company (I’m fine with staying 183 days a year in Cyprus). what would you recommend? is it a good alternative to forming a company?
2. None of my few clients are from Cyprus (mostly are from Israel), will I still have the Possibility of having this mentioned “TAX Exemption on income from foreign clients” if the rest of the year I’m out of Cyprus? Thanks again and keep having fun!
Best is to send us a message through www.offshorecitizen.net
The whole capital gains tax and or taxation on crypto yields still seems like a grey area in Cyprus. In this video you mention that you can be exempt on capital gains and interest but how does that apply to crypto?
No clue about that but maybe this helps;
when holding crypto for longer than 365 days, any increase in value is 100% tax free in Germany thus far.
Hello. Thank you for the video. Do you suggest Cyprus for setting up a business based on a site? Or if not, which country?
Great video,I have a question: how it works on practice when someone has children, who needs to go to school? In this case you have to spend at least 183 days per year. Could you give us some idea, how people manage it?
Great video as always, thank you! Just subscribed.
If you have time, please answer my question, it would be greatly appreciated, you would help me a lot.
"100% exemption on remuneration for salaried services..."
I am an entrepreneur, a mobile game developer from Hungary.
I signed a contract with a game publisher company located in Israel. The payment which I receive from them is not monthly, not fixed amount. It is payment per game prototypes I develop for them.
My question is, if I do the 90 days rule right, then does this 100% exemption on this revenue apply to me?
Does this type of income count as a "salaried service"?
Thank you for your time, keep up the good work!
It probably should but would need to dive into the details
great video michael. One question on the 90 days rule - how would it work if in the country the job is located in, already deducts tax (and social security etc) from the salary automatically?
Great video! A question: does Cyprus allow those who become residents or their children to work in Cyprus?
Thank you and god bless.
Depends on under which visa
You mention nomad workers - does this apply to employees for companies based outside of Cyprus? If so, how would suggest such an individual go about opening a company in Cyprus to meet the 60 day tax resident requirement? I imagine Cyprus expects a working business as a result of the company? or have I misunderstood? Thanks!
Yes it applies for companies based outside of Cyprus.
I'll do a video in the future on residency options.
Jon Olson just moved his company to there, that’s why I am interested to dig more why Cyprus is good
Hey, how about if you are a foreigner owning LLC in US, and have US bank account, and running operations outside of the USA, but selling to US clients who wire the funds to your US bank account? Do you still not have to pay taxes?
Does working for online company like Fiverr, patreon, UA-cam qualify as a foreign sourced income?
Not in most cases
Is there any workaround for that 60 day minimum? what happens if you hop around europe and don't add up the full 60 days? would they be checking on you?
They do calculate your stay based on: 1. the day of departure from Cyprus (they count it as a day of residence outside of Cyprus) 2. day of arrival counts as day of residence on Cyprus 3. arrival and departure from Cyprus in the same day counts as one day of residence in Cyprus and 4. departure and arrival in the same day counts as one day of residence outside of Cyprus
Hi Michael, I just emailed you about Montenegro and you answered me. As I said, I am already set up in Panama. Cyprus might make sense for me too. Could an Air BnB constitute a residence? I am thinking it could be difficult to get an apartment lease for 60-90 days. Thanks for this video and all you do!
You have to rent an apartment the whole year
Very interesting ...thank you
Out pleasure!
Anything you'd like to see next?
So bascily if i own a company in Cyprys and live there, there is 0% dividens tax, but what about monthly paycheck to my self tax? from what i see it's from 20% to 35% tax rate, quite high
Correct it's good for foreign wages if you work abroad, dividends or capital fans not local salaries.
Hi Michael, thanks for the good content.
What do you mean by dual treaty tie breaker, does becoming a resident of Cyprus make you break your ties in your previous country for tax purposes, e.g. from UK moving to Cyprus or Bulgaria can you break the ties for example ?
No but if two countries are claiming you are resident there the tax treaty will override local law
All my Cypriot friends inc my x wife lol say that Cyprus as become so expensive and even the residents are struggling and looking to go elsewhere I like Cyprus have been many times and covered the whole Island lovely people , nice food and at least they drive on the correct side of the road :-)
Expensive is relative I guess. Compared to Paris or Oslo or Switzerland or Dubai I find it affordable.
@@OffshoreCitizen of course but when a country becomes too expensive for its indigenous people I think thats a problem
great video...
I have a simple question... If i want to move to Cyprus for at least a year as a digital nomad... can i legally open a bank account there and receive my salary every month with no taxes.. ? or maybe low taxes rates?
Fantastic information! So as a freelancer working for a foreign employer, spending at least 60 days a year in Cyprus and at least 90 days a year outside Cyprus, it's possible to get 0% tax? If you spend, for example, 90 days outside Cyprus but you're in Cyprus for the rest of year living there, do you get 0% for the whole annual income or just for the period you were not in Cyprus? Also, do you have to pay socials with this programme? Thanks for the great video :)
You need to do the work outside of the country for 90 days a year.
Yes, depending on the form of income you are subject to socials.
@@MichaelRosmer thanks! But what I mean is if you spend, in a year, 91 days outside Cyprus, and 274 days inside Cyprus, doing the work every day of the year, is the whole year of work tax exempt, or just the period outside Cyprus?
@@NxD3TH if it's for a foreign employer than it should be yes
@Ivan Jaros thank you for this input
@Ivan Jaros Yes sounds like it could be. Although I think with territorial tax like in Georgia or Malaysia, it depends on the type of income. As far as I understand it, it's not as simple for a freelancer working for a client abroad, because they are still doing the actual work in Georgia/Malaysia
With the Cyprus non-domicile residency program, would you suggest opening a company in Cyprus but a bank elsewhere? Because the cyprus banking system has its risks. is it doable to have a bank account in another country and a company in Cyprus? if so what EU countries would you recommend for opening a bank account for a cyprus company? Regards.
Michael, can an Airbnb be used as a "residence?" I would spend 60-90 days in Cyprus, so renting an apartment for the full year would not seem to make a lot of sense. Thanks! Thanks.
Not really
I think there is something else in the non dom requirements that stipulates you have to be employed in Cyprus or hold an office in Cyprus .
Hi Michael, just came across your channel. Excellent information btw. One question of relevance, as a director of a incorporated company in the eu, can I draw dividends from my company at 0% in Cyprus once resident? Thanks again
On the Cyprus side foreign dividends are received tax free under the non dom but the sending country might have withholding tax. There's also a risk Cyprus deems the company locally tax resident.
Best to book a call for specific examination of your situation.
Thanks for the video. Something to consider. What would you suggest for a crypto trader, who also earns stablecoin passive income and would like to spend no more than 3-5 months in each country? Portugal seems tax friendly towards crypto right now. I have Italian and Brazilian citizenship.
Lots of options here so I guess I'd ask first of all what part of the world you'd like to live in?
Hi
Love your content!
So you said you have to rent or own a property there..
If I only stay for the 60 days, I'd have to rent only for 60 days or you actually need to rent for the whole year? Thanks
This is part of a more complex question that depends partially where you're coming from, where else you're staying, your goals, etc but usually it should be for the whole year
I working out of Cyprus but i buy own flat almost I spend 200k euro in south cyprus and apply for PRP in feb 2019 but still under processing. Next year my son will go university then I will move an other country.
I’m pondering Cyprus & Portugal. Planning a vacation to both soon. Would love your help
@michaelrosmer
Happy to help. We can have a chat about your situation and I'll guide you on the best solution for you calendly.com/michael-rosmer
Mr. Michael, are there any countries in the Schengen with favourable tax regimes like Cyprus (i.e. no capital gain tax, no interest tax, no dividend tax, etc ? ) If someone spends like 9 months in Schengen as their primary business is there and then 3 months in Cyprus to maintain the tax residency then its not going to work right ? Is there any other way around ?
No, it wouldn’t work because you have to spend a substantial amount of time to be considered tax resident, even more importantly to NOT be considered tax resident in your home country.
If you want specifics regarding your situation please book a call calendly.com/michael-rosmer
It could potentially work. Cyprus specifically will allow you to be tax resident based on 60 days per year and the Schengen zone isn't a single country so if you split your time between countries it could be possible.
It always depends on the details because the substance and countries matter.
@@MichaelRosmer i believe it wouldnt since your home country would require you to demonstrate you have lived more than 183 days in Cyprus to be deemed a tax resident in Cyprus.
@offshorecitizen correct me if im wrong
@@AS-tc1rh no that's not necessarily the case. This comes down to a common confusion I've mentioned many times on this channel:
1. If you're from many countries you can be tax resident nowhere
2. You can be tax resident in multiple countries
3. Tax residency is often not principally determined by the amount of time in the country but facts related to your ties to that country
You'll notice that not a single tax treaty uses 183 days as a rule to determine in a tie-breaker situation where you are tax resident it is always based on where you have a permanent home, center of vital interests, and habitual abode
How is banking in Cyprus? Operational business banking with the ability to wire funds in and out when needed.
Not especially recommended. We tend to avoid banking in Cyprus. It's fine for smaller amounts of money but for larger amounts we set up accounts elsewhere.
@@MichaelRosmer Thank you for the response. Doesn't make sense to discuss business options in a country where the business cannot bank properly.
@@VERTICALWisdom yeah I typically don't look too Cyprus as she to do your business
Hey Michael, great content!
I am an Israeli resident (with a french passport), I'll be nomadic in the next years. I've concedered to open a company in Cyprus. I would be an Israeli resident probably for the next 2 years (really hard to detach). Does it make sense to open a company there now? (There isn't a tax treaty between the countries)
Thank you very much
Great question it depends a lot on the details of your circumstances. The best is to reach out to us either send a message on www.offshorecapitalist.com or www.clarity.fm/michaelrosmer and we can go over your specific circumstances.
Would a remote job as programmer for a malta company work? Working from cyprus remotely. 0 taxes right? Im right now in Germany
Can you also talk about gains from crypto?
hey there , I am currently in germany and i work as a software developer in a compnay ,
so how can i like sort of benefit through this program ,
If i ask my company to let me work remotely(quite easily), then what else legal processes would be needed
thanks a lot
I'm assuming crypto gains are not taxed as Cyprus does not tax securities?
That's the current treatment yes. They don't have any unique crypto specific regulations, they are working on it but for now it's being treated that way
I'm from Greece and i'm working in Cyprus for a university. In case of finding a remote job outside Cyprus (Italy or UK) is it possible to change my tax status to non-domiciled? And if for example i'm 4 months to Greece and 8 months to Cyprus working for a foreign company and they offer me a salary lets say 30K gross that means that my net salary is going to be 30K?
Is this tax arrangement still available? I tried contacting you on your website to arrange engaging your services but I've not had a response.
Does anyone know if you have to pay social security on the foreign salary in Cyprus as a non dom?
Great video - I'm a German citizen working in remote sales for an American company (as an independent contractor receiving comissions per sale - I have no company on my own).
Considering the rules (working 90days + outside of Cyprus traveling) - Would this work in my case as well? (0% tax rate on my income, only 60 days that have to be spend)
Possibly, it would depend on the other facts but could well be
You always want to be careful on the details you've got to worry about the other countries you're connected to as well
Is Defi investment income - lending, staking, etc tax-free in Cyprus on this visa?
Visas themselves don't change your tax. Arguably staking income is regular income so fully taxable unless placed in a corporate structure.
@@MichaelRosmer Saturday night! You should be out enjoying yourself!! Thanks for the reply!
Thank you for a very interesting and insightful video! I have been reserarching Cyprus for a long while now, and in general there is only one unaswerd question. (one big one)
How is the coorporate tax on capitol gains when the gains are in cryptocurrencies traded on exchanges and/or stored in private wallets. And, if there is any kind of cooperate tax on cryto capitol gains, what about tax on private owned crypto currencies. This I struggle finding answers on because "most capitol gains, and capitol gains in general" does not anser what about crypto trading..... I really hope you would provide me insight in this, greetings from Norway.
So I have one question Michael. What if you're a day trader(trading US securities). Can you move to Cyprus, buy a villa and get 0% tax on your profit from trading?
Im from Denmark if that matters?
Thanks for a great vid!
Hi Frederik. Yes day trading US securities would be tax exempt in Cyprus.
I actively trade US futures too, and I'm evaluating several options for tax efficiency: Italy, Cyprus, Malaysia.
How is your search going?
What happens if I work remotely for a UK company but they pay my salary into a Cyprus bank account?
Depends where you live, not where your bank account is or the company that employs you.
If he would live in cyprus and work from there but remote for the UK company is it tax excempt?
The remuneration from the rendering outside Cyprus of salaried services for an aggregate period in the year of assessment of more than 90 days to an employer not resident in Cyprus or to a permanent establishment outside the Republic of an employer in the Republic shall be exempt from tax.
@@tomfrank2115 certainly seems good on the face of it. I’ll have to find out if any tax is owed in uk as there must be some sort of tax owed somewhere :)
8:03 Didn't quiet understood. You need to be outside of the country for 90 days? Which country? The employer country, Cyprus, any country?
Need to be doing the work outside of Cyprus at least 90 days of the year.
@@MichaelRosmer Nice. Thank you!
Realy stupid. I consider remote work remote and not in country. What is the difference
what about age restrictions?
What rules apply when you have your company registered on Cyprus and the companies employees work elsewhere?
Can you have a similar outcome with low to no tax?
Depends where the management and control and operations are as well as the types of income.
@@MichaelRosmer If the management would follow these exact rules named in this video, would the same still apply for the company or would that have different rules?
@@testtor2714 company rules are different than personal
How would the Cypriot tax authorities know you were in another country for 183 days or more???
Passport stamps
@@farceadentus Schengen is many countries.
I suppose if you are managing/controlling an offshore company yet from within Cyprus you would then be subject to regular corporate tax?
Maybe it depends on the tax treaty of there is one but often on corporate tax yes.
@@OffshoreCitizen as an alternative to this problem, it is my understanding Georgia does not provide CFC tax legislation rules?
@@DR-it8ce that's true no CFC rules in Georgia and no management and control rules in Georgia. You may run into permanent establishment or source income rules but they aren't too good at enforcement.
@@MichaelRosmer Tks Michael. I just read this point made in a Forbes article, towards the end of it; "Therefore, a legal entity is a Georgian tax resident, if it is registered OR has a place of management in Georgia. Meeting any of those two criteria qualifies a company as a Georgian resident." forbes.ge/blog/630/Tax-residency-rule-in-Georgia-and-importance-of-being-Georgian-tax-resident
@@DR-it8ce yeah it depends on tax treaties and a few other factors but it's very tough to enforce purely based on source income or permanent establishments.
If I have a business in the us , where should I pay the taxes ?
Depends on the actual substance of the company and where you're best. The best option if you'd like to go over your specific situation is to book a call and we can guide you on what applies to you and how best to optimize it
Does it also apply for real state passive income??
Depends on where the real estate is located
Great info, really enjoy this channel. According to the 60 day rule, You must not be a tax resident of another country. If you currently own property in the UK will you need to stay 180 days instead. Thanks
Yes, you couldn't trigger tax residence via any other method in any other country of you want to be there only 60 days etc.
183 (half of the year +1 day)
@@algife be careful about this as you can be tax resident spending less than half a year in some cases
@@MichaelRosmer like in Ireland for example. My comment pretends to make reference to previous Jony T's comment
@@algife yes like Ireland, also UK if you reach the statutory residency test you could for instance spend 90 days and under the right conditions be UK resident.
Finally shifting out of low profile grunge average neighborhood look
Video Starts at 3:14
interested.
offshorecitizen.net/contact/ please reach out and we'll be happy to assist
Yeah but you said you cant be a tax resident in another country. So this is only good for nomads. Companies 12 % and dividends etc.
What about for an individual say cashing out crypro?
What do you mean it's only good for nomads?
It can be good potentially for cashing or crypto
Cyprus is too expensive.
Babbling video
Cyprus sounds very attractive to investors with an ability to obtain residency. What other countries compare to this from a tax minimisation perspective?
There is no tax treaty between Australia and Cyprus. Therefore non Aus residents would be liable to 30% withholding tax on dividends from Australia that are not fully franked. Most DTA countries with Australia allow for 15% withholding tax liable to non residents.
Is it possible to set up a structure in a country that has a DTA with Australia, get the dividends paid into that structure at the low withholding tax of 15% and then get passed on to a Cyprus resident tax free, Thus saving that 15%?
That is potentially possible, there are some limitations and restrictions but it can be an option.
I think the more interesting question is whether you can avoid using an Australian company at all. 15% isn't good, 0% is much better especially keeping in mind the 15% is after corporate taxes paid.
@@MichaelRosmer The withholding taxes would only be on a portion of the returns from the managed fund. It would consist mostly of capital gains, maybe some franked dividends and it will vary in any given year but the withholding taxes from unfranked dividends may only be on 20% of the return from the fund. So 15% on that 20% would equal a 3% tax rate on the total return if that makes sense.
Of course its a trade off on cost to set up and maintain vs expected earnings.
Theres ways of reducing withholding taxes to 0 from Australian dividends?