Moving to Cyprus and the Non-Domicile Regime

Introduction

With over 20% of the population being made up of expats it is clear that Cyprus has become a hotspot for those looking to relocate. There are several benefits drawing people to Cyprus, ranging from a high standard of living and excellent healthcare system to the wide array of taxation benefits and visa options. The 320 sunny days a year also helps convince some.

In this article we will briefly summarise the routes to residency through the two most popular immigration options, as well as outline the key benefits of the Cyprus Non-Domicile (Non-Dom) Regime.

Immigration Options

 EU and EEA citizens

As a member of the European Union (EU), Cyprus offers the right to live and work in the country for all EU and European Economic Area (EEA) citizens, making relocation straightforward for those from these regions.

Non-EU and Non-EEA citizens

For non-EU and non-EEA citizens, commonly referred to as third-country nationals, there are several pathways to residency. The two most popular options are:

  1. Establishing a Foreign Interest Company (FIC)

Rights: This route gives you (and your family members) the right to live and work in Cyprus.

Investment requirement: An investment of €200,000 of paid-up capital that can be later used to fund the expenses of the company or used for investments to generate income.

See our full detailed article here if this route to residency interests you.

  1. Residency by Investment

Rights: This route gives you the right to live in Cyprus but not the right to work. This means you may not take up any employment in the republic but does not limit you from being the owner and a director on a Cyprus resident company, thus receiving dividends, or working for an overseas entity.

Investment requirement: A local investment of €300,000 is required. This is commonly done through the purchase of a residential property to live in.

See our full detailed article here if this route to residency interests you. Please note there have been some recent changes to the permanent residency regime, we have done a detailed article on these changes here.

  1. Other residency options

A number of other options are available, though they tend to be less commonly used and may involve a more extended application process. If you are considering moving to Cyprus and feel that neither of the above options suits your circumstances, please feel free to contact our team. We would be happy to explore alternative solutions tailored to your situation.

Cyprus Non-Domicile Regime

When you become a tax resident in Cyprus you may qualify for the Cyprus Non-Dom regime, provided you or your father were not born in Cyprus. This tax regime lasts for 17 years with no buy-in cost.

If eligible and you complete your application, you can take advantage of the following benefits:

  • 0% tax on dividends, capital gains, and most types of interest
  • 50% income tax exemption on salaried income, provided you meet the criteria

For those with investment income or receiving dividends from an overseas business, this regime allows you to receive these amounts free from tax.

For more detailed information about the Non-Dom regime, please refer to our full article here.

How Can Dixcart Help

At Dixcart, we leverage over 50 years of experience to assist individuals worldwide in finding tailored solutions and executing their plans. For immigration clients, we provide comprehensive support, from gathering required documents for visa/residency permits to guiding you through tax structuring and even accompanying you to immigration offices.

If you are considering moving to Cyprus, reach out to us at advice.cyprus@dixcart.com to see how we can assist you.

Portuguese Golden Visa 2025 Processing Updates

The Portuguese Immigration and Borders Service (AIMA) recently held a meeting (January) with legal representatives to discuss key updates and processing changes for the Portuguese Golden Visa programme in 2025.

The key changes can be summarised as follows:

  • Citizenship Residency Period: The five-year residency period for citizenship begins on the date of the initial application fee payment (allowing elapsed time since application not to be wasted – as it counts toward the five-year residency requirement for citizenship).
  • Digital Transition: AIMA is moving to a fully digital system to streamline processing. Expect a transition period for pending cases (applications awaiting their initial biometric appointments will be prioritised).
  • Document Validity: All documents will need to be re-submitted online (this includes personal and investment-related documentation). Their validity will be assessed based on the resubmission date.
  • Language Flexibility: Documents in English, Spanish, or French no longer require translation.
  • Final Fees: Final fees are to be paid at the biometric appointment. Reimbursement is available for rejected applications.

Other relevant updates include the following:

  • AIMA aims to streamline application processing and improve efficiency by transitioning towards greater reliance on digital platforms. To this end, they are prioritising applications awaiting their initial biometric appointments and focusing on addressing abandoned applications.
  • Biometric appointments will be scheduled from 15 January 2025, in chronological order of document uploads. Appointments can be scheduled between 30 to 90 days in advance.
  • Following successful biometrics and a thorough review, AIMA will proceed with the issuance of Golden Visa cards. Applicants will be notified if any issues are identified during the process and required to make corrections.
  • Existing cards remain valid until June 2025. Renewals will continue to be processed in person at AIMA offices. A dedicated platform for booking renewal appointments will be made available in the coming months. Dixcart is actively requesting in-person biometrics appointments for renewal applications.
  • Card validity varies based on the investment type: two years for fund-based clients and three years for property-based clients. Government fees are subject to potential changes.

Disclaimer: This information is provided for general guidance for discussion purposes and should not be considered advice.

Reach out to Dixcart Portugal (advice.portugal@dixcart.com) for more information.

What are the Tax Consequences of the NHR Regimes?

Taxpayers who are NHR (Non-Habitual Residents) or IFICI (Incentive for Scientific Research and Innovation) eligible, benefit from a package of respective tax advantages, for a period of 10 consecutive calendar years (with the option of utilising the marginal rates, if lower), from the effective date of Portuguese tax residency.

Summary of Tax Consequences Differentiating between the Previous and New NHR (IFICI/NHR2.0) Regime

Previous NHR Regime (Grandfathered – respective tax residents continue to benefit from old rules)New NHR Regime (“NHR 2.0”), IFICI (Effective 1 January 2024)
Who does this apply to?Those who became tax resident before 31 December 2023, or those, under the transitional rules, became tax resident before 31 December 2024.Those who become tax resident on or after 1 January 2024 onwards and comply with the respective criteria – see link.
Employees or contractors of a Portuguese based entity20% taxation for high value-added activities.20% taxation for work for certain eligible activities.
Employees or contractors working for a foreign based company (exception for exempt salary income)20% taxation for high value-added activities if the income is not taxed in the source state.Not subject to tax if a high value-added activity or otherwise subject to progressive taxation up to 48% plus surtaxes.
HNWI deriving only passive related income (foreign)Only certain foreign passive income may be exempt. Portfolio gains generally taxed at 28%. Blacklisted tax jurisdictions (35%).Not subject to tax, with exception from blacklisted tax jurisdictions (35%).
HNWI deriving only passive related income (local/Portugal)28% (unless marginal rates apply, if lower), or other exemptions.28% (unless marginal rates apply, if lower), or other exemptions.
Pensioners10% or exempt.Progressive taxation up to 48% plus surtaxes.
R&D work performed in Portugal20% taxation for high value-added activities. Other foreign passive income may be exempt.20% taxation for work for certain eligible activities. Exempt on foreign income from several categories of income.

I am part of the previous NHR – does this affect me?

As the previous NHR regime will be grandfathered (including those who become tax resident before 31 December 2024), there is no impact for individuals already enjoying NHR status. The regime will continue to exist until the 10-year NHR period is reached, from when each respective individual registered for NHR.

Contact Us

Dixcart Portugal provide a host of services to international clients. Reach out for more information (advice.portugal@dixcart.com).

Note that the above must not be considered as tax advice and is for discussion purposes only.

Portugal’s Revised Non-Habitual Residents (NHR) Regime: Key Changes Explained

Following the Government’s release of regulations in December 2024, Portugal has reintroduced a new Non-Habitual Residents Regime (NHR), known as “NHR 2.0” or IFICI (Incentive for Scientific Research and Innovation). The new regime is, effective from 1 January 2024 – a redesigned tax incentive scheme replacing the previous NHR.

The scheme, to summarise, is to allow those who choose Portugal as their base for establishing their business or exercising a respective professional activity in Portugal, to benefit from several tax advantages.

The key benefits, available for 10 calendar years from the time they become tax resident in Portugal, are summarised as follows:

  • 20% flat tax rate on qualifying Portuguese income.
  • Exclusion from tax for foreign-sourced business profits, employment, royalties, dividends, interest, rents, and capital gains.
  • Only foreign pensions and income from blacklisted jurisdictions remain taxable.

Requirements for the New NHR:

Those intending to benefit from the new NHR can do so provided they comply with the following set of requirements:

  1. Application Deadline: Applications must generally be submitted before 15 January of the following year after becoming tax resident in Portugal (Portugal’s tax years run in line with calendar years). A transitional period applies for those who became tax resident between 1 January and 31 December 2024, with a deadline of 15 March 2025.
  2. Prior Non-Residency: Individuals must generally not have been tax resident in Portugal in the five years preceding their application.
  3. Qualified Professions: To be eligible, individuals must be employed in at least one highly qualified profession, including:
    • Company Directors
    • Specialists in physical sciences, mathematics, engineering (excluding architects, urban planners, surveyors, and designers)
    • Industrial product or equipment designers
    • Doctors
    • University and higher education teachers
    • Specialists in information and communication technologies
  4. Qualification Criteria: Highly qualified professionals typically require:
  1. A minimum of a bachelor’s degree (equivalent to Level 6 on the European Qualifications Framework); and
  2. At least three years of relevant professional experience.
      1. Business Eligibility: to qualify for the Portuguese NHR under the business eligibility criteria, individuals must be employed by companies that meet specific requirements, namely:
        • Eligible businesses must operate within specific economic activity codes (CAE) as outlined in the Ministerial Order.
        • Companies must demonstrate that at least 50% of their turnover is derived from exports.
        • Belong to eligible sectors, including extractive industries, manufacturing, information and communication, R&D in physical and natural sciences, higher education, and human health activities.
      2. Application Process:
        • Specific forms must be submitted to the relevant authorities (which may include the tax authorities) for eligibility verification. This is something Dixcart Portugal may assist with.
      3. Application Documents: Required documents may include:
        • Copy of employment contract (or scientific grant)
        • Up-to-date company registration certificate
        • Proof of academic qualifications
        • Statement from the employer confirming compliance with the activity and eligibility requirements
      4. Annual Confirmation:
        • The Portuguese tax authorities will confirm the NHR 2.0 status annually by 31 March.
        • Taxpayers must maintain records demonstrating that they carried out the qualifying activity and generated the corresponding income during the applicable years and provide this evidence upon request to benefit from the respective tax advantages.
      5. Changes and Termination:
        • If there are changes to the original application details that affect the competent authority or the entity verifying the value-added activity, a new application must be filed.
        • In case of any changes to, or termination of, the qualifying activity, taxpayers are required to inform the relevant entities by 15 January of the following year.

      What are the Tax Consequences for my Income Sources?

      The tax rate and treatment will vary – please refer to our article on Tax Consequences of the Non-Habitual Residents Regime for more information.

      Contact Us

      Dixcart Portugal provide a host of services to international clients. Reach out for more information (advice.portugal@dixcart.com).

      Note that the above must not be considered as tax advice and is for discussion purposes only.

      Exciting Changes to the Cyprus Startup Visa Scheme and New Opportunities for Global Entrepreneurs

      Introduction

      At the end of 2024 a number of revisions to the existing Cyprus Startup Visa Scheme were approved. These changes make an already very attractive scheme more appealing and accessible.

      Overview of the Scheme

      The Cyprus Startup Visa Scheme allows talented entrepreneurs from non-EU and non-EEA countries, whether individuals or a team, to enter, reside and work in Cyprus while establishing, operating, or growing a high-potential Startup. The aim of the scheme is to create new job opportunities in Cyprus, promote innovation and research, grow the business ecosystem and consequently the overall economic development of the country.

      For the purposes of the Scheme, Innovative Startups are defined as unlisted small enterprises registered within the last 5 years, with no profit distribution and have not been formed through a merger. The enterprise should develop or offer new products, services, or processes that create or disrupt markets. Such innovations are based on new technologies, should adapt existing technologies, and/or employ new business models.

      Beneficiaries of the Scheme are categorised under either the ‘Individual Startup visa scheme’ or under the ‘Team Startup visa scheme’.  A team is considered as “a maximum of 5 individuals consisting of non-EU country nationals”. The Team should consist solely of the founders of an innovative Startup or of at least one founder and other senior executives. In both the Individual and the Team Startup visa scheme at least 25% of the company’s shares should be owned by one or more member(s) of the applicant or team of applicants.

      What has Changed?

      The revisions to the Cyprus Startup Visa Scheme include:

      • An extension to the residence permit offered to successful applicants from 2 to 3 years, with a possibility of 2-year renewals, instead of the original renewal for 1 year;
      • A reduction to the required percentage of equity third country applicants must have in the Cypriot company from 50% to 25%. It is noted that a start-up group applying for this specific visa may consist of up to five founders (or one founder and additional executive members), and must have a minimum of €20,000 capital or €10,000 if the founders are less than two;
      • The ability to increase the number of third country nationals employed from 30% to 50% of the company’s entire staff, with the option of hiring additional foreign personnel if the start-up investment in Cyprus is equal to, or exceeds, €150,000;
      • The implementation of different evaluation criteria for start-ups that have sales revenues of at least €1,000,000, and whose research and development expenditure amounts to at least 10% of the total operating expenses for one of the past 3 years.

      While the updated programme offers greater flexibility to foreign entrepreneurs and investors, it also establishes more distinct and objective conditions for the renewal of the start-up visa after the initial 3-year period. Specifically, start-ups wishing to renew their relevant visas will be required to demonstrate either a minimum increase of 15% in their revenues or investments of at least €150,000 during the period of their operation in Cyprus. Additionally, the companies applying for a renewal visa will be expected to have either created at least 3 new jobs in Cyprus, or participated in a local innovation support scheme, or launched at least one product or service.

      Tax Benefits

      With an ever-expanding double tax treaty network of approximately 70 countries across the globe, Cyprus offers a number of tax benefits to start-ups and foreign investors of such start-ups, such as:

      • A non-Cypriot individual relocating to Cyprus to set-up their startup is exempt from tax on dividends, capital gains and most types of interest income, though they will still be subject to income tax on any income earned as a salary from their employment in Cyprus.
      • Investors in innovative start-up companies (which have been certified as such by the Ministry of Finance in Cyprus) can enjoy up to 50% tax exemption on their annual taxable income in Cyprus.
      • Corporate tax on net profits of Cypriot companies is currently set at 12.5%. Technology companies producing Intellectual Property can apply for an 80% tax exemption, reducing the corporate tax rate to an effective 2.5%.
      • Capital gains arising from the disposal of the qualifying IP are fully exempt from tax. Any gains earned by the entrepreneur from the disposal of his/her shares in a Cypriot tax resident company are generally exempt from tax in Cyprus.
      • Cyprus tax resident companies may carry forward tax losses incurred during a tax year over the following 5 tax years to offset future taxable profits, allowing startups, which are commonly loss making in their early stages, to benefit in the future.
      • Upon the introduction of new equity, a Cyprus tax resident company is entitled to claim a notional interest deduction (NID) as a tax-deductible expense. The deduction is available on an annual basis and may reach up to 80% of the taxable profit generated from the new equity. Depending on the level of capitalisation, a startup company may reduce its effective tax rate to as low as 2.5%.
      • Profits from disposals of corporate ‘titles’ are tax exempted from corporate income tax. However, capital gains on immovable property situated in Cyprus (on non-quoted shares directly or indirectly holding such Cyprus-situated immovable property) are taxed.
      • Special defence contribution is imposed only on non-exempt dividend income, ‘passive’ interest income, and rental income earned by Cypriot tax resident companies and Cypriot permanent establishments of non-Cyprus tax resident companies.

      How can Dixcart Cyprus Help?

      With over 50 years of expertise in the industry, we bring a deep understanding of supporting individuals, families, and businesses. Our teams combine extensive knowledge of the local regulatory framework with the global reach, resources and expertise of our international group, ensuring we deliver tailored solutions that perfectly meet your needs.

      At Dixcart, we recognise that every client is unique, and we pride ourselves on offering personalised services. By working closely with you, we gain an in-depth understanding of your specific requirements, enabling us to provide bespoke solutions, recommend the most suitable structures, and support you every step of the way.

      Our comprehensive range of services include company incorporation, management and accounting services, company secretarial support, and even providing a fully serviced office for your Cypriot company.

      If you are considering how Cyprus can play a role in managing your wealth or business needs, we would be delighted to discuss your options. Please do not hesitate to contact us at advice.cyprus@dixcart.com.

      Malta’s Permanent Residence Programme: Key Changes Effective January 2025

      What is the Malta Permanent Residence Programme (MPRP)?

      The Malta Permanent Residence Programme (MPRP) was introduced in 2021, when it replaced the Malta Residence and Visa Programme (MRVP). The MPRP is designed to grant permanent residency to non-EU/EEA/Swiss nationals and their eligible family members. The programme aims to attract foreign investment while offering successful applicants the right to reside in Malta and access benefits such as visa-free travel within the Schengen Area.

      As per Legal Notice 310 of 2024 published by the Maltese Government on 19 November 2024, the MPRP has undergone several key changes to the eligibility criteria and overall costs. MPRP. These amendments affect all MPRP applications from 1 January 2025.

      What are the Key Changes?

      The most significant changes are as follows:

      • New Financial Eligibility Criteria

      Prior to the changes taking effect in January 2025, applicants were required to possess a minimum of €500,000 in assets, including at least €150,000 in financial investments. Under new provisions, applicants will have two options:

      1. showing that they have capital assets of a minimum €500,000, out of which a minimum of €150,000 must be financial assets; OR
      2. show they have capital assets of a minimum €650,000, of which €75,000 must be in the form of financial assets.
      • Age Limit for Dependant Children and New Fees for Dependants

      Before the changes in the rules, a dependant child included in the application could be over 18 years old, unmarried, and primarily financially reliant on the main applicant. This applied to biological and adopted children of the main applicant or their spouse, provided they met the criteria set by the Residency Malta Agency. From 1 January 2025, the definition of a dependant child will change to include only those who are under 29 years old at the time of application. This new age limit does not apply to adult children certified by a recognised medical authority as having a disability.

      A fee of €10,000 per dependant has been introduced, consisting of a combination of a €5,000 non-refundable administrative fee and a €5,000 financial contribution. There are no fees for dependants apply under the current version of the programme.

      • Qualifying Property Costs

      The minimum thresholds for qualifying owned or rented property are set to increase.

      Post-amendments, starting 1 January 2025, the minimum property purchase value will increase to €375,000 (previously, the minimum price was €300,000 for properties in Gozo or the South of Malta and €350,000 for properties in other areas) and the minimum annual rent for qualifying rented property will increase to €14,000 (before this change, the minimum annual rent was €10,000 for properties in Gozo or the South of Malta and €12,000 for properties in other regions).

      Under the new provisions, the location of the property will not impact the financial contributions due by the applicant.

      • Main Applicant’s Financial Contribution

      The contributions that applicants will have to pay have increased from €28,000 to €30,000 for applicants who choose a qualifying owned property, and from €58,000 to €60,000 for those who opt for a qualifying rented property. The contribution must be made within eight months of the issuance of the approval letter.

      • Administrative Fee

      The administration fee for applications submitted after 1 January 2025, will increase to €50,000 (from €40,000 under the previous regime). This fee is non-refundable, with €15,000 payable within one month of application submission and the remaining €35,000 due within two months of receiving the letter of approval in principle. For dependants, a total fee of €10,000 will apply (an increase from €7,500). Of this, €5,000 is a non-refundable administration fee, which must be paid within two months of the letter of approval in principle. The remaining €5,000 is payable within eight months of the same letter. If a dependant is added after the certificate of residence is issued, the non-refundable portion must be paid when the application is submitted.

      There will be no changes to the investment route which involves making a donation of €2,000 to a local philanthropic, cultural, scientific, artistic, sport or animal welfare NGO registered with the Commissioner of Voluntary Organisations.

      How Dixcart Can Assist?

      The Dixcart office in Malta has extensive experience in guiding clients through the application process of the MPRP and the various residence programmes available in Malta.

      For further information, please contact Jonathan Vassallo at the Dixcart office in Malta: advice.malta@dixcart.com. Alternatively, feel free to reach out to your usual Dixcart contact.

      2024 Overview: Key Articles and Insights from Dixcart Switzerland

      Introduction

      As we approach the end of 2024, we reflect on the key articles shared by our Switzerland office this year. Below are concise summaries of Dixcart Switzerland’s 2024 articles, offering practical guidance on Swiss residency, trusts, and business opportunities.

      1. Swiss Regulation: 2023 Overview and What to Expect in 2024
      Key regulatory updates for 2024 include VAT rate increases, a 15% minimum corporate tax for multinationals, and the removal of import duties to boost economic competitiveness. Reflections on 2023 cover the Swiss-UK financial treaty, updates to the Federal Act on Data Protection, corporate law reforms, and enhanced anti-money laundering measures.

      2. Setting Up a Business in Switzerland
      Comprehensive guidance on starting a business in Switzerland, including legal structures such as sole proprietorships, partnerships, and limited liability companies. Highlights include essential steps for registration, tax implications, and adherence to employment regulations.

      3. Dixcart Gains Regulated Trustee Status in Switzerland – Understanding the Significance
      Dixcart Trustees Switzerland (SA) attained regulated trustee status from FINMA, aligning with Swiss structural and business-conduct standards. Key advantages of Swiss trusts include confidentiality, tax efficiency, and enhanced wealth preservation opportunities.

      4. The Role of a Swiss Trustee: Exploring How and Why They are Beneficial
      Swiss Trustees play a pivotal role in estate planning, wealth management, and asset protection. Switzerland’s central location, leading banking infrastructure, and strong commitment to confidentiality make it an ideal jurisdiction for trustee services.

      5. How to Become Swiss Resident by Working in Switzerland
      Switzerland provides several routes to residency through work, including employment with a Swiss company, forming a business, or investing in one. EU/EFTA nationals benefit from easier processes, while non-EU/EFTA nationals have stricter requirements. Taxation differs by canton, and contributions through business activities often benefit local economies.

      6. Introduction of Swiss Trusts
      Swiss Trusts and Private Trust Companies (PTCs) offer secure asset protection, confidentiality, and succession planning options. Trusts under foreign laws are recognised in Switzerland, and taxation depends on the residency of the settlor and beneficiaries. FINMA-regulated Trustees uphold strict confidentiality and compliance standards.

      7. Guide to Establishing and Managing a Swiss Company
      Switzerland is an attractive location for businesses, offering low tax rates, political stability, and a prime European location. Incorporation typically takes three weeks, with options like SARL or SA structures. Flexible labour laws, VAT compliance, and favourable tax treatment for dividends and capital gains strengthen the benefits of operating in Switzerland.

      Additional Information

      For additional details on any of these topics or assistance with related services, please contact Christine Breitler at our Switzerland office: advice.switzerland@dixcart.com.

      Cyprus: A Year in Summary – Private Wealth, Business, and Taxation in 2024

      Introduction

      Throughout 2024, we have shared various articles explaining and highlighting the benefits and routes available to those moving to Cyprus. We have also covered the corporate benefits and the required parameters for establishing a company in Cyprus.

      In our final article for 2024, we highlight the key information from the last 12 months, with additional links for those looking for more detail. 

      Individuals

      Cyprus Tax Residency for Individuals

      Cyprus tax residency rules are simple, there are only two rules. The 183-day rule and the 60-day rule. The 60-day rule means you could be considered tax resident after spending only 60 days in Cyprus each year, subject to further conditions.

      It is also possible to receive a government issued tax residency certificate to provide to other jurisdictions to evidence your tax residency if required.

      The Cyprus Non-Dom Regime

      Cyprus has a very competitive Non-Domicile Regime which taxes an individual on their worldwide income at special rates. This means individuals can remit their income to Cyprus and use it, rather than keeping it ringfenced in a separate jurisdiction.

      The special rates include 0% income tax on most Dividends, Interest, Capital Gains and Royalties. On top of this there is also no wealth or inheritance tax in Cyprus.

      The Non-Dom Regime is available for 17 years in the first 20 years of tax residency and does not have a cost of participation like many others from across Europe.

      Moving to Cyprus

      There are a number of routes to gain residency in Cyprus, but they can be broken down into routes for EU and EEA nationals and routes for non-EU and EEA nationals, otherwise known as 3rd country nationals.

      The route for EU and EEA nationals is simple. Due to EU directives, any EU and EEA national has the right to live and work in Cyprus, which is a member state of the EU. This means that the process is fast and straightforward and comes down to providing evidence to show that you will not become “a burden on the social security system of the Republic of Cyprus”.

      For 3rd country nationals there are a number of options but the most common of them is through establishing a Foreign Interest Company (FIC) or through Permanent Residency by Investment (PRP). These both have individual specific advantages and requirements but the most notable is the right to work. Under the FIC method, 3rd country nationals have a residence and work permit, whereas under the PRP they do not have the right to undertake any form of employment within Cyprus.

      Corporates

      The Cyprus Corporate Tax Regime

      Provided that a company has sufficient Economic Substance in Cyprus, it is considered Cyprus Tax Resident, and as a result can make the most of the fantastic Corporate Tax Regime available.

      Some of these benefits include 0% Corporation tax on most Dividends, Interest, Capital Gains and Royalties as well as a standard rate of 12.5% corporation tax on revenues, which can be reduced to as little as 2.5% if your company is eligible to apply the Notional Interest Deduction (NID).

      There are also no Withholding Taxes in Cyprus and over 60 double tax treaties making disbursing funds and receiving funds highly tax efficient.

      The above benefits make Cyprus the perfect place for a Holding Company or a Family office, as it is a fantastic place to manage your investments from.

      How Can Dixcart Cyprus help?

      With over 50 years of experience in the sector, we have a wealth of knowledge in assisting families, and our teams offer in-depth expert knowledge on the local regulatory framework along with the backing of our international group of offices to help us find the perfect solution for you.

      At Dixcart we know that every individual’s needs are different, and we treat them as such. We work very closely with our clients and have an in-depth understanding of their needs. This means we can offer the most bespoke services possible, propose the most appropriate structures, and support your specific requirements every step of the way.

      We offer services raging all the way from company incorporation, Management and accounting services, and company secretarial services all the way to providing a serviced office for your Cypriot company.

      Get In Touch

      If you are interested in discussing your options and how using Cyprus to manage your wealth could help you, please contact us. We will be happy to answer any questions you have and assist in any way we can: advice.cyprus@dixcart.com.

      Why Non-Doms and Equivalents are Structuring Their Wealth Through Cyprus: Key Benefits and Advantages

      Introduction

      For a long time, countries worldwide have had schemes such as the Portuguese NHR, the Italian Flat Rate Scheme, and the Cyprus Non-Domicile Regime.

      With the rise of global mobility in the modern world, schemes like these are becoming more and more popular. They provide individuals with the opportunity to live in a beautiful country, full of culture, with the advantage of beneficial tax regimes.

      Whether you are enjoying a remittance style taxation system, a list of exempt incomes, or even a lumpsum single annual charge, Cyprus is an appealing jurisdiction to consider for managing wealth.

      In this article we explore the benefits of using a Cyprus Holding Company for individuals taking advantage of a Non-Dom regime.

      Key Advantages

      Cyprus has a fantastic corporate tax regime and as a result has become world renowned for being a favourable place to establish a holding company.  Some of the key features and benefits of a Cyprus Holding Company can be found here (link to article) below.

      Taxation of income

      Cyprus has one of the lowest rates of corporation tax in the EU at 12.5%. This rate however can be considerably lower if you are eligible to apply for the Notional Interest Deduction (NID) which can reduce corporate tax to a rate as low as 2.5%.

      In addition to the low rate of corporation tax, the following sources of income are exempt from corporation tax (which is not limited to holding companies):

      • Dividend Income
      • Interest income, excluding income arising in the ordinary course of business, which is taxed under corporation tax
      • Foreign Exchange (FX) gains, excluding FX gains arising from trading in foreign currencies and related derivatives
      • Capital Gains, excluding gains from the sale of immoveable property in Cyprus or shares in companies owning such property

      It should also be noted that a Cyprus Holding Company is required to have sufficient economic substance in Cyprus to be considered a tax resident company.

      Other benefits

      In addition to the above-mentioned rates and exemptions, there is also 0% withholding tax (WHT) in Cyprus and over 60 Double Taxation Treaties which allow for transfers of Dividends, Interest and Royalties at reduced taxation rates in the countries received.

      The key point regarding WHT is that Cyprus is a member of the EU and as a result has access to the EU Parent-Subsidiary Directive, provided the company is the Beneficial Owner of the income. This Directive aims to eliminate WHT and double taxation from transactions within the same group within the EU.

      Cyprus being a member of the EU also means that it is fully OECD compliant and is whitelisted internationally. This makes processes like opening a bank account or purchasing investments, such as property, much easier than using a non-whitelisted country.

      How Does This Help You?

      While Non-Domicile Regimes vary, they often fit one of three categories: a remittance basis, flat rate taxation, or exempt incomes.

      Using a Cyprus Holding Company can benefit individuals being taxed under each of these three categories and the advantages listed earlier in the article lend themselves perfectly to be adaptable to suit your needs. Below we outline how they can be used to help you:

      • The use of a Holding Company is, by design, a method of collating your earnings and investments in one place. If this place is outside of your personal tax resident country, then this will not impact your personal tax liability if you are taxed under the remittance basis. You may also end up with a lower rate of WHT across your investments by using Cyprus. You can let the wealth build up in your Cyprus Holding Company and only remit exactly what you chose to remit.
      • If you are living in a jurisdiction in which various forms of income are exempt, such as dividends in Portugal, having your wealth accumulate in one place and then being able to remit a portion of the accumulated wealth to yourself using an exempt method, could result in considerable savings. It would also enable you to use what is left in the Company to generate more income through further investment. If your investments are EU based, this may eliminate WHT from the structure as a whole.
      • If you are paying a flat rate of tax, like for example in Switzerland or Italy, you may think that your savings would be limited because you pay the flat rate either way. However, the use of a Cyprus Holding Company as a method of investment management can impact other taxes such as WHT savings and inheritance tax.

      How Can Dixcart Help?

      With over 50 years of experience in the sector, we have a wealth of knowledge in assisting families, and our teams offer in-depth expert knowledge on the local regulatory framework, along with the backing of our international group of offices, to help us find the perfect solution for you.

      At Dixcart, we know that every individual’s needs are different, and we treat them as such. We work very closely with our clients and have an in-depth understanding of their needs. This means we can offer the most bespoke services possible, propose the most appropriate structures, and support your specific requirements every step of the way.

      We offer services ranging from company incorporation, management and accounting services, and company secretarial services, all the way to providing a serviced office for your Cypriot company.

      If you are interested in discussing your options and how using Cyprus to manage your wealth could help you, please contact us. We will be happy to answer any questions you have and assist in any way we can: advice.cyprus@dixcart.com.

      The Portuguese Golden Visa: A High Net-Worth Essential

      The Portuguese Golden Visa remains golden for a reason – despite its various changes since its introduction in 2012. Thousands of families have benefited from the programme, identifying the second residency option as a high-net worth essential.

      The residency-by-investment programme allows non-EU/EEA citizens to obtain a Portuguese residence permit in exchange for an investment in Portugal – namely:

      • Fund investment: Investing a minimum of €500,000 in a Portuguese non-real estate collective investment fund, OR
      • Commercial company: one of the following two options are available:
        • Newly incorporated: a capital transfer of at least €500,000, with headquarters in Portugal, combined with the creation of five permanent jobs,
        • Existing company; capital transfer of at least €500,000, with headquarters in Portugal, combined with the creation of five permanent jobs, or maintenance of 10 jobs, OR
      • Job creation: creation of 10 jobs, OR
      • Research Activities: a capital transfer of €500,000 to a private or public scientific research institution (or €400,000 in a low-density areas), OR
      • Artistic productions: a capital transfer of €250,000 for investment in artistic productions reflecting national cultural heritage (or €200,000 in a low-density area).

      Benefits of the Portuguese Golden Visa Programme

      • EU citizenship
      • Family reunification
      • Visa-free travel in Schengen area
      • Tax benefits
      • Lower investment and more flexibility than other EU residency programs
      • Minimum requirement of 7 days average stay in Portugal per year
      • Individuals who choose to become tax resident in Portugal can benefit from the Non-Habitual Residents Programme (it is possible for non-EU individuals to apply to the two schemes simultaneously)

      Why Choose Portugal?

      Portugal is a popular destination for investors due to its high quality of life, stable economy, and favourable tax regime. The country offers a beautiful climate, excellent healthcare, and a strong educational system.

      Need More Information?

      Reach out to Dixcart Portugal who will introduce you to independent legal advisors and consultants who will assist you with the process. With decades of experience in the private client sector, and we look forward to helping you. Reach out to advice.portugal@dixcart.com.