Cyprus, non-cathedral, taxes and what you need to know about it!

Two countries are mentioned above all when it comes to tax avoidance through emigration within the European Union, Malta and Cyprus. Not only do they offer clear advantages, but as full-fledged members with the euro as their currency, these southernmost countries in Europe offer an attractive quality of life and climatically perfect locations!

There is a general opinion that it is worse in Cyprus than in Malta, but the reality could not be further from that. In recent years, stability and quality of life on the island have improved significantly.

Why has Cyprus become so beautiful?

The island of Cyprus has attracted more and more attention as a potential vacation spot. All you need to get there is an Emirates flight from Malta that will take you straight to Cyprus!

The size of the eastern Mediterranean makes it a huge testing ground for adventurers. Cyprus has a lot to offer, but there are also a number of challenges.

People in Cyprus face many obstacles, one of which is the location of the island. The island’s proximity to Turkey and Syria makes it unsightly for many.

The division of Cyprus into a Turkish and a Greek half has been an issue for decades. The island was divided by Turkish troops in 1973 and led to the formation of a military government that continues to this day, with only one side currently being recognized as a fully sovereign state in Europe!

What many may not know is that there are actually four different autonomous areas on the island of Cyprus. This also includes the two military bases Akrotiri and Dhekelia, which were once also British colonies!

Cyprus was not always known for stability and a high quality of life. However, these two characteristics have improved so much in recent years that the island has become an attractive destination for emigrants, especially through the new non-dom program.

How the non-dom program works in Cyprus

It can be said that a change of residence to Cyprus is very beneficial. The Cypriot government had cleverly designed its special program and prevented many disadvantages. It is still in the process, especially with regard to the fact that Cyprus is not yet considered a low-tax country in Europe!

The government has avoided the high tax by ensuring that a man can live tax-free in Cyprus. But effectively, there is still a 35% tax rate, similar to most EU countries. The definition of “low tax country” is not appropriate for this context because only income tax matters, but not other taxes such as sales tax or VAT, which vary depending on the situation. The European Union has approved the Cypriot programme, while Malta is increasingly being criticized for calf non-dom systems and tax breaks.

The country of Cyprus has a specific program that provides full tax exemption for dividends and interest income from domestic and foreign sources, regardless of whether they are remitted domestically or not. This regulation has recently been extended to include price gains on a private level, which makes this paradise even more tempting for traders than ever before!

Negated stay program

The Cypriot government has simplified its residency program even further to attract new groups of residents. To this end, not only was the minimum stay reduced from 6 months to just 2 weeks (and provided some additional tax benefits), but new opportunities were also created to take advantage of these previously popular incentives! It is not even necessary to set up a company in Cyprus.

Register business

Registering a business is so nice because of the low costs. For just under €1000, you can take advantage of tax benefits. The purpose of this regulation so far is to pay the minimum social security contributions of only 14%. But if we want to take advantage of another job in this country and maximize potential income beyond 19,500, things get a little different: progressive tax rates apply from 35%, but it’s possible to reduce them by 50% for up to 5 years.

The entrepreneur does not operate his business in Cyprus, but any foreign company with local conditions. He receives all profit distributions completely foreign tax free in Cyprus.

Alternative for private individuals

Wealthy individuals and traders now have another opportunity to avoid taxes in Cyprus. As part of this program, it is possible to avoid all social security contributions in addition to health insurance when applying for citizenship, as long as you can prove that your income is above a certain amount and you have valid health insurance.

To get the most out of this opportunity, you need to have a minimum income of 6000 euros, which is backed up by bank statements from the last three months. This can be achieved either in the form of dividends or in the form of exported profits from companies and investments abroad!

Conclusion: tax haven, for you too!

As you can see, Cyprus has many advantages over other tax havens like Malta. Not only is it possible to ski and swim on the same day, but also lower prices; saving on taxes will always be an attractive feature of this beautiful island!

Cyprus is the perfect destination for anyone who wants to live a quality lifestyle with all its many benefits. Clear conditions such as an officially approved program and a minimum stay on the island offer much more legal certainty than other places where problems in various areas continue to increase despite lower taxes!