Case Study: Relocating an Online Business to Cyprus Under the Non-Domicile Regime
An EU national, operating a successful consultancy company, sought a jurisdiction that combined tax efficiency, EU credibility, and a high quality lifestyle. With an international client base and no dependence on a physical location, Cyprus emerged as a natural choice for both business relocation and personal residency. The individual also held a personal investment portfolio which was discretionary managed by an EU Financial Institution.
After relocating to Cyprus, the individual became a Cyprus tax resident and incorporated a Cyprus private limited company to centralise operations. Cyprus’s EU-compliant legal system, competitive corporate tax rate (15%), and extensive double tax treaty network provided a strong foundation for international growth.
By introducing new equity into the business to support operating activities, the individual utilised the Notional Interest Deduction (NID) incentive and reduced the company’s effective corporate tax rate to 3%.
The business was structured to provide consultancy services to international clients, invoicing directly from Cyprus while meeting all required substance and compliance standards. By combining a director’s salary with dividend distributions, the owner achieved a highly optimised and fully compliant tax position. This included eligibility for the 50% income tax exemption on first salaried employment in Cyprus, full utilisation of the tax-free €22,000 income band and progressive income tax rates between 20% and 35%. This resulted in a clear, efficient structure that supported scalability and long-term planning.
In addition, the individual qualified for Cyprus’ highly attractive non-domicile regime, allowing dividends and interest income to be received tax-free for up to 17 years. Capital gains derived from disposal of securities were exempted from taxation.
Beyond the financial advantages, Cyprus offered a compelling lifestyle upgrade: a Mediterranean climate, excellent infrastructure, English-speaking professionals, and straight-forward access to EU markets. This case highlights how EU entrepreneurs can leverage Cyprus’ non-dom regime to enhance profitability, simplify operations, and enjoy an exceptional quality of life within a trusted EU jurisdiction.
How can Dixcart Cyprus Help?
With over 50 years of experience, Dixcart Cyprus brings deep expertise in supporting families. Our team offers in-depth expert knowledge of the local regulatory framework, backed by the support of our international offices to help deliver the right solution that fits your needs.
At Dixcart, we recognise that every individual’s circumstances are unique. We work closely with clients and their advisers to understand their priorities and provide bespoke solutions that support effective tax planning and long-term success. .
We offer services ranging all the way from company incorporation, management and accounting services and company secretarial services to serviced offices for your Cypriot company if needed. We also offer immigration support, guiding clients through the whole process.
If you would like to explore how Cyprus could support your business or personal wealth planning, please contact us: advice.cyprus@dixcart.com.
