Since 2017, foreigners can obtain the status of a Cyprus non-domicile tax resident if they stay in Cyprus for at least 60 days a year, conduct business or are employed in this country or occupy leadership
positions in a Cyprus company (for example, directors).
The status of a tax resident makes it possible officially not to pay:
- dividend tax;
- interest tax on income from any loans;
- tax on income from trade in securities.
This means that, for example, by distributing dividends from any company and filing a tax return in Cyprus, you will no longer need to pay additional taxes, and all the income you receive will be fully tax-free.
The same applies to interest income on any loans, as well as securities trading, which makes it possible to invest your funds in any projects, receive interest or income from transactions without additional tax burden.
In addition, this status gives a 50% tax benefit for any employment in Cyprus, if your annual income exceeds 100,000 euros. Thus, you can reduce the amount of taxes and legitimize your income.