Category: Residency

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 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.

Cyprus Residency Options for Non-EU Citizens

Dixcart has over 50 years of experience in assisting and advising individuals with their residency applications. It is important to note that each option has its varying advantages and requirements, so it is critical for us to understand which option will be best suited for you.

As a non-EU national, there are four main options for obtaining residency, as outlined below:

1. Permanent Residence through Investment
2. Establishment of a Foreign Interest Company
3. Permanent Residency Programme (PRP) – ‘Slow Track’
4. Temporary / Retirement / Self-Sufficiency Residence Permit

To help you understand the options, we have broken down the detail of each option below.

Permanent Residence through Investment

If you wish to use the residency by investment route, then you will be required to make an investment of €300,000 + VAT. There are several investment options to consider, the most common of which is residential real estate.

In order to be eligible to for this option you must meet the following criteria:

• Be over 18 years old
• Have no criminal record or prosecution, restrictions or bans on entry to the EU and the UK
• Not be under sanctions
• Maintain an income of €50,000 per year for the main applicant (plus €15,000 for a spouse and €10,000 for any additional children)
• Own or rent accommodation (applicable for those not investing in residential real estate)
• Provide a medical report
• Obtain medical insurance

It is important to note that this immigration permit does not allow the applicant and their spouse the right to work. As a result, they are not able to undertake any form of employment in Cyprus. However, they are permitted to own Cyprus companies, act as directors, and receive dividends.

The applicant and their spouse must certify that they do not intend to be employed in the Republic of Cyprus with the exception of being Directors of a Cyprus company.

If you are successful in your application, then permanent residency is issued for life. After 5 years of living in the Republic of Cyprus, the holder of a permanent residency can apply for a passport (subject to conditions) and become a citizen of the EU.

Establishment of a Foreign Interest Company

A Foreign Interest Company is an international company, which, subject to meeting specific criteria, can employ non-EU national employees in Cyprus. This programme enables key employees and their families to gain residence, and work permits under favourable terms.

It also allows the owners of the company to apply for a work permit and residency through the company. This means that they will have the right to live and work in Cyprus and can bring their employees with them. Their family members are also allowed to apply to live in Cyprus.

All parties also benefit from both the individual tax rate savings and the corporate tax savings available in Cyprus, including the non-Domicile status.

The Main Requirements Enabling an International Company to qualify as a Foreign Interest Company:

• The third country shareholder(s) must own more than 50% of the total share capital of the company.
• There must be a minimum Investment of €200,000 into the Cyprus Company by the third country shareholder(s). This investment can be used later to fund future expenses incurred by the company when it is established in Cyprus.

After 7 years of residency in Cyprus, individuals can apply for Cypriot citizenship (subject to conditions), enjoying the benefits of a Cypriot passport and EU citizenship. Highly skilled foreign workers can now obtain Cypriot citizenship if they have resided in Cyprus for a shorter timeframe of 4 – 5 years (depending on Greek language knowledge).

Permanent Residency Programme (PRP) – ‘Slow Track’

The Cyprus Permanent Residency ‘Slow Track’ – also known as ‘Category F’ – programme is available to applicants who possess, and have fully and freely at their disposal, a secured annual income, high enough to provide a good standard of living in Cyprus, without having to engage in any business, trade, or profession. This is essential as this option gives you the right to live in Cyprus but not to work.

Whilst applicants are allowed to reside in Cyprus from the date of the official submission of the application, they should allow 12 to 18 months to obtain the Permit.

The Main Qualification Requirements are as follows:

• Annual income, that is sourced from outside Cyprus, of a minimum of €24,000, which increases by 20% for a spouse and by 15% for each dependant child
• A title deed or rental agreement for a residential property in Cyprus that is for the sole use of the applicant and his/her family
• A certificate of ‘no criminal record’ and of not being under investigation for criminal offences, that is attested by the relevant authorities of the applicant’s country of current residence
• Private Medical Insurance
• Whilst no minimum investment amount is specified, the higher the financial commitment, the more likely it is to be considered favourably. Typically, a property purchased for €150,000 will fulfil this requirement.

Temporary/ Retirement/ Self-sufficiency Residence Permit

The Cyprus Temporary Residence Permit is an annually renewable self-sufficiency visa that allows an individual and their qualifying dependants, to live in Cyprus as a visitor, without employment rights.

The Main qualification requirements are as follows:

• Annual income, that is sourced from outside Cyprus, of a minimum of €24,000, which increases by 20% for a spouse and by 15% for each dependant child
• A title deed or rental agreement for a residential property in Cyprus that is for the sole use of the applicant and his/her family
• A certificate of ‘no criminal record’ and of not being under investigation for criminal offences, that is attested by the relevant authorities of the applicant’s country of current residence
• Private Medical Insurance
• An original medical examination certificate to confirm that the applicant does not have certain medical conditions

N.B. It is essential that a holder of this temporary residence permit should not stay out of the country for more than three months at a time, because this could result in the permit being cancelled.

How Can We Help?

Dixcart (Cyprus) Management Limited is part of an independent group, established over 50 years ago. We have offices in various jurisdictions and can therefore offer you the most optimal solution in several jurisdictions, depending on your needs.

Get in Touch

If you require further information regarding residency in Cyprus for Non-EU Nationals, contact advice.cyprus@dixcart.com.

Relocating to a new country is a life-changing decision that cannot be taken lightly. Immigration status, residence permit, job availability, healthcare and education are just a few of the many elements individuals and their families need to assess before taking such an important step in their lives.

Malta is a strong option to consider for several reasons. Two of the main reasons to consider Malta is their economy, which has been constantly growing year after year and needs to increase its pool of workers. This trend is set to continue, with EU growth forecasts constantly placing Malta in the first position among EU countries. In addition to this, the Mediterranean climate and the island’s lifestyle are attractive for many foreigners. 

Definitions, Visa and Legal Basis to Stay in Malta

Third-Country Nationals (TCNs) are individuals who are not citizens of the European Union (EU), European Economic Area (EAA) or Swiss Nationals. To enter Malta, a Schengen visa is required. The Schengen visa would allow a TCN to stay in the Schengen area for a maximum of 90 days over a period of 180 days. Once this visa has expired, a TCN can remain in Malta only with a valid legal basis: this can be related to employment, self-sufficiency, family reunion, study, health or refugee status.

Planning to Work in Malta?

The Schengen visa does not allow its holder to work in Malta. To be able to reside and work in Malta, TCNs need to obtain a single permit, a document that combines residence and work permit. The single permit is valid for 1 year and indicates both the employer and the position/job title of the TCN. Should any of these details change a new single permit needs to be issued.

Highly skilled individuals can also benefit from the Key Employment Initiative (KEI), or the Specialist Employee Initiative (SEI), which provides a fast-track work permit for highly specialised TCNs who are employed in Malta.

Thinking of Self-Employment?

The single permit does not allow self-employment. TCNs who wish to set up a business in Malta, will require an employment license issued by Jobsplus, the Maltese Job Agency, which will grant it if one or more of the following conditions are met:

a) the TCN makes a minimum capital investment of €500,000;

b) the TCN is a highly skilled innovator who commit to recruit at least 3 people (EU, EEA or Swiss nationals) within 18 months;

c) the TCN has a project approved by Malta Enterprise, the Maltese Government FDI Agency. The TCN will be able to apply for a residency permit once the employment license is granted.

Are you able to Sustain your Residence in Malta Without Employment?

TCNs can apply for a residence permit based on self-sufficiency through investment or tax programmes such as the Global Residence Programme, the Malta Permanent Residence Programme, and the Malta Retirement Programme. These are the only routes through which a TCN can obtain a residence permit based on self-sufficiency. For more information on these programmes, and for all residence and citizenship programmes available in Malta, we invite our readers to visit this page on our website.

Alternative Options for Startups and Digital Nomads

There are two additional routes for TCNs to work and obtain residency in Malta.

The Malta Startup Residence Programme targets founders and co-founders of innovative start-ups. Such individuals can relocate and live in Malta and can apply for a 3-year residency permit, together with their immediate family. It is possible to include Key Employees for the startup under this programme

TCNs can also apply for the Nomad Residency Permit, which is designed for individuals who wish to maintain their current job in another country, but legally reside in Malta and work remotely.

Individual Cases: Study and Health

TCNs may apply for a residence permit for the purpose of study. It is to be noted that, in this case, they are not allowed to work, unless they obtain an employment license by Jobsplus, which would allow them to work for up to 20 hours per week.

A residence permit can be granted to a TCN who intends to seek medical treatment in Malta. In this case, particular documentation needs to be submitted to Identità, the Maltese agency responsible for passports, visa, identity documents, work & residence documents.

Additional Information and Assistance

Our staff at the Dixcart Malta Office can assist in providing advice as to which programme would be most appropriate for each individual or family.

We can also assist with visits to Malta, applying for the relevant Maltese residence programme, assist with property searches for rentals and purchases, and provide a comprehensive range of individual and professional commercial services once relocation has taken place.

For further information about moving to Malta please contact Jonathan Vassallo: advice.malta@dixcart.com.

Dixcart Management Malta Limited Licence Number: AKM-DIXC.

Introduction

Given the ongoing uncertainty around the UK’s Non-Domiciled (Non-Dom) tax regime, many UK resident non-dom’s are evaluating the potential impacts and considering their options outside the UK. With over 50 years of experience in advising clients on jurisdictional changes and beneficial solutions, the professionals at Dixcart Cyprus have prepared insights to assist you in your decision-making process.

Should I Leave the UK?

The recent proposal to scrap the remittance basis of taxation has prompted many Non-Doms to reconsider their UK tax residency. Relocating involves numerous factors such as family situation, income sources, new tax exposures, visa/residency permit requirements, and lifestyle preferences. While the decision is personal and complex, we can highlight some key benefits of relocating to Cyprus to help inform your choice.

Could Relocating to Cyprus Be the Answer?

Cyprus, with its 320+ sunny days a year, stunning beaches, vibrant cities, and national parks, is much more than “a rock in the middle of the sea”. It is the 3rd largest Mediterranean island and home to over 1.2 million people, including a significant expatriate community. Strategically located at the crossroads of three continents, Cyprus offers excellent connectivity through its two international airports.

The island boasts diverse living options from modern sea-view apartments in bustling cities like Limassol—dubbed “little Dubai” for its impressive skyline—to serene cottages in picturesque villages. Cyprus is renowned for its safety, excellent educational institutions, robust healthcare system, and a cost of living that is often lower than many other popular destinations for Non-Doms.

In addition to lifestyle benefits, Cyprus offers an attractive Non-Dom tax regime. While Non-Doms are taxed on worldwide income, several exemptions make it a favourable destination. Dividends, interest, and capital gains are exempt from personal income tax, even when remitted to Cyprus, allowing you to enjoy your wealth locally. Cyprus, as an EU member, provides access to EU initiatives and over 60 double tax treaties.

For EU citizens, relocating to Cyprus is straightforward with no visa requirements. Non-EU citizens can benefit from several favourable residency routes, such as establishing a Foreign Interest Company (FIC), which allows directors and key personnel to apply for residency and work permits for themselves and their families. Cyprus also has one of the shortest presence requirements in Europe to be considered a tax resident, with options as short as 60 days under specific criteria.

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 a move from the UK or any other jurisdiction to Cyprus, reach out to us to see how we can assist you at advice.cyprus@dixcart.com.

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Switzerland is a popular destination for non-Swiss nationals wishing to become Swiss resident.

Working in Switzerland is often overlooked as an option, in terms of being able to move to this country. 

Why do Individuals Choose to Live in Switzerland?

There are many reasons why Switzerland is a desirable country to live in.

These include:

• A high standard of living with excellent working conditions and business opportunities.
• Beautiful scenery and an active outdoor lifestyle.
• A central location within Europe, with flight connections to over 200 international locations.
• Many of the world’s largest international organizations have their headquarters in Switzerland.
• Switzerland is not part of the EU but one of 29 countries making up the ‘Schengen’ area. An area which enjoys a number of travel rights.

Additional important information regarding this jurisdiction:

• Switzerland, together with, Iceland, Liechtenstein and Norway, forms the European Free Trade Association (EFTA).
• Switzerland is divided into 26 cantons, each currently with its own basis of taxation.

Non-Swiss nationals are allowed to stay in Switzerland as tourists, without registration, for up to three months. After three months, anyone planning to stay in Switzerland must obtain a work and/or residence permit, and formally register with the Swiss authorities.

When applying for Swiss work and/or residence permits, different regulations apply to EU and EFTA nationals compared to other nationals.

How to Become Swiss Resident?

Residence – Working in Switzerland

The acquisition of a Swiss work permit allows a foreigner to become legally Swiss resident.

They are three ways to be entitled to work in Switzerland:

1. Being hired by an existing Swiss Company.
2. Forming a Swiss Company and becoming a director or an employee of the Company.
3. Investing in a Swiss Company and becoming a director or an employee of the Company.

A. Being Hired by an Existing Swiss Company

The individual will need to find a job and the employer register the employment, before the individual actually starts work.

It is straightforward for EU/EFTA citizens as they enjoy priority access to the labour market in Switzerland.

Non-EU/EFTA nationals, however, are only allowed to enter the Swiss labour market if they are appropriately qualified, for example if they are managers, specialists and/or with higher education qualifications. They also need to meet a higher level of due diligence criteria, compared to EU/EFTA nationals.

The employer needs to apply to the Swiss authorities for a work visa, while the employee must apply for an entry visa from his/her home country. The work visa will allow the individual to live and work in Switzerland.

B & C. Forming or Investing in a Swiss Company and Becoming a Director or an Employee of the Company

Procedures for both EU/EFTA and for non-EU/EFTA nationals are easier, if the new resident forms a Swiss company and is employed by it.

Any foreign national can form a company and therefore potentially create jobs for Swiss nationals. The owner of the company is eligible for a residence permit in Switzerland, as long as he/she is employed by the company in a senior capacity. The owner of the company is eligible for Swiss residence as long as he/she is employed by the company.

In principal, non-EU/EFTA nationals can form a company which must generate an annual minimum turnover of CHF 1 million, and create new jobs exploiting new technologies and/or the development of the region and contribute to the economic development of the country. The types of economic development objectives for the company, which are regarded positively in Switzerland, include; opening up new markets, securing export sales, establishing economically significant links abroad, and the creation of new tax revenue. Precise requirements vary by canton.

Alternatively, EU and non-EU/EFTA applicants can choose to invest in a company which is struggling to expand, as it lacks the necessary funding. This new funding should then enable the company to create jobs and assist the Swiss economy to expand. The investment must add economic value to a particular Swiss region.

A higher level of due diligence criteria must be met by non-EU/EFTA nationals, in comparison to EU/EFTA nationals, and the business proposition, put forward, will also need to offer greater potential.

Taxation

Individuals

Each canton sets its own tax rates and generally imposes the following taxes: income, net wealth, real estate, inheritance and gift tax. The income tax rate varies by canton and is between 21% and 46%.

In Switzerland, the transfer of assets, on death, to a spouse, children and/or grandchildren, is exempt from gift and inheritance tax, in most cantons.

Capital gains are generally tax free, except in the case of real estate. The sale of company shares is classified as an asset, which is exempt from capital gains tax.

Swiss Companies

Swiss companies can enjoy a zero-tax rate for capital gains and dividend income, depending on the circumstances.

Operative companies are taxed as follows:

• The effective cantonal and federal corporate income tax rate (CIT) is between 12% and 14% in most cantons. The Geneva corporate tax rate is 13.99%.
• Swiss Holding Companies benefit from a participation exemption and do not pay tax on profits or capital gains arising from qualifying participations. This means that a pure Holding Company is exempt from Swiss tax.

Withholding Tax (WHT)

• There is no WHT on dividend distributions to shareholders based in Switzerland and/or in the EU (due to the EU Parent/Subsidiary Directive).

• If shareholders are domiciled outside Switzerland and outside of the EU, and a double tax treaty applies, the final taxation on distributions is generally between 5% and 15%.

Double Tax Treaties

Switzerland has an extensive double tax treaty network, with access to tax treaties with over 100 countries.

Additional Information

If you require additional information regarding moving to Switzerland to work, or have any other questions about this jurisdiction, please contact the Dixcart office in Switzerland: advice.switzerland@dixcart.com. Alternatively, please speak to your usual Dixcart contact.

Introduction

Here is the scenario; You have been making the most of Portugal’s fantastic tax regime for Non-Habitual Residents (NHRs) for the last 9 years. But you know that your NHR status will come to an end after the 10^th year, and, if you stay in Portugal, you will have to pay tax at the standard Portuguese rates once it does end.

We understand that many of those coming to the end of their NHR status will have made Portugal their home and will be willing to remain tax resident in Portugal. However, others may decide that their tax exposure would be too great and so will be considering moving and becoming a tax resident somewhere else. But where?

The Dixcart Group have been advising clients on questions such as this for over 50 years. Being a global group we have experienced teams with expert local knowledge in a variety of jurisdictions working as one to help you with your decision.

In this article we’ll explore why we believe a move to Cyprus could be exactly what you are looking for.

Why Cyprus?

Cyprus is an appealing European jurisdiction, located in the eastern Mediterranean Sea offering a warm climate and attractive beaches. Cyprus is the 3^rd largest and 3^rd most populated of the Mediterranean Islands and so offers a lot of choice for those considering relocating. There is a perfect balance of cosmopolitan living and rural villages to choose from. While Nicosia serves as the centrally located capital of the Republic of Cyprus, the growing financial hub resides in Limassol on the southern coast.

Strategically located at the crossroads of three continents, Cyprus is accessible from Europe, Asia and Africa. The official language is Greek, with English also being widely spoken. Cyprus also offers great public sector services such as a fantastic healthcare system and excellent schools.

Given the high standard of living and the palette of choice available on the island, together with the corporate and personal tax incentives for expatriates and high net worth individuals, relocating to Cyprus has long been the first choice for many expats looking for a place to settle.

How do I Become a Cyprus Tax Resident?

Individuals can move to Cyprus and become a Non-Domiciled Tax Resident, by spending at least 183 days in Cyprus without additional conditions. This Non-Domiciled Tax Residency status is applicable for 17 out of 20 years and comes with a wide array of benefits.

For individuals with closer ties to Cyprus such as running/operating a business in Cyprus and/or being a director of a company which is tax resident in Cyprus, the increasingly popular ‘60 Day Tax Residency Rule’ might be of interest.

To be eligible for the ‘60 Day Tax Residency Rule’ you’re required to meet the below criteria:

• Reside in Cyprus for at least 60 days in a property which you own or rent.
• Operate/run a business in Cyprus and/or be employed in Cyprus and/or act as a director of a company which is tax resident in Cyprus.
• You must not be a tax resident in any other country.
• You must not reside in any other single country for a period exceeding 183 days in aggregate.

In order to reside in Cyprus, you have a variety of options. These differ for EU nationals and non-EU nationals. It is also worth considering that, in some cases, after only 5 years of residency you can apply for citizenship through naturalisation and receive your Cypriot passport. We have included a brief summary of the most options below:

Residency procedure for citizens of the EU/EEA/Switzerland

1. Registration of E.U. citizens (MEU1)

All citizens of the EU/EEA/Switzerland, as well as their family members who are also citizens of the EU/EEA/Switzerland, have the right to work and reside for a period of up to 3 months without any conditions or any formalities other than the requirement to hold a valid identity card or passport.

After 3 months they still have the right to work and live in the republic but just register their presence with the immigration office. They must hold a valid identity card or passport and:

• be workers or self-employed persons in Cyprus; or
• have sufficient resources for themselves and their family members not to “become a burden on the social assistance system” during their period of residence and have comprehensive sickness insurance cover in Cyprus.

Residency options available for non-EU nationals

1. Starting a business

1. Establishing a Foreign Interest Company (FIC)

Work and residency permits can be obtained for relevant employees and Directors, as well as their family members.

2. Establishment of a Small/Medium Size Innovative Enterprise (Start-up Visa)

The core goal of the Cyprus start-up visa scheme is to allow talented, non-EU entrepreneurs to reap the benefits of residing and working in Cyprus. There are two main schemes: (1) the Individual Start-up Visa Scheme; and (2) the Team Start-up Visa Scheme. This visa is available for one year, with the option to renew and allows you to work and reside in Cyprus.

2. Permanent Residence through Investment Program (PRP)

Applicants must make an investment of at least €300,000 in one of the investment categories required under the programme, the most popular of which are real estate and investing capital into in a Cyprus company. They must also have an annual income of at least €50,000 and deposit a minimum €30,000 into a bank account in Cyprus, for a minimum period of three years.

3. Other less popular options available that our team can help with

There are less individuals using these permits due to their specific nature. However, for the right individual they can be the right choice. These include the Permanent Residence Permit on a Visitor Basis (Category F) Permit. This doesn’t allow you the right to work but you can still receive income from overseas, such as a pension or dividends. There is also a Digital Nomad Visa, however the cap of the total amount of allowed applications has been reached and therefore this programme is currently unavailable.

If you would like to hear more about each option, please contact a member of the team here in Cyprus and we will be more than happy to run through the options in full detail with you and discuss what might be best for you.

What are the Advantages of Becoming a Cyprus Tax Resident?

Cyprus non-domicile status can be an effective means to optimise personal wealth planning. The advantages of becoming a Cyprus tax resident, an option for individuals not previously tax resident in Cyprus, include the following:

1. Non-Domicile Status

The non-domicile tax regime is particularly interesting for individuals whose main source of income isn’t salary based. This is because the following sources of income attract a 0% tax rate in Cyprus:

• Dividends
• Interest income
• capital gains, other than on the sale of immoveable property in Cyprus

There are also other tax advantages, including a low rate of tax on foreign pension income, as well as no wealth or inheritance taxes.

The zero tax benefits, mentioned above, are enjoyed even if the income has a Cyprus source and/or is remitted to Cyprus.

2. Employment Income Tax Exemption

For those that do receive a salary, Cyprus has recently updated its income tax laws and now has some very attractive income tax exemptions for those Non-Domiciled Tax Residents who do take up employment in the Republic.

1. The 50% exemption:

50% of the remuneration of employees whose first employment in Cyprus began on, or after, 1 January 2022 is exempt from income tax for a period of 17 years, provided that their annual remuneration exceeds €55,000, and the employees were not residents of Cyprus for a period of, at least, 15 consecutive years before the commencement of their employment in Cyprus.

2. The 20% exemption:

Individuals whose first employment in Cyprus began after 26 July 2022 and earn less than €55,000 are eligible for a 20%, or €8,550 exemption (whichever is lower) from their employment income, for a maximum period of 7 years provided that the employee was not a resident of Cyprus for a period of, at least, 3 consecutive years before the commencement of their employment in Cyprus.

3. Tax Exemption on Income from Employment Outside Cyprus

Individuals who are employed outside of Cyprus, for more than 90 days in aggregate in a tax year, by a non-Cyprus tax resident employer or foreign permanent establishment of a Cyprus tax resident employer, are exempt from income tax on this income.

If you are interested in making the most of the benefits outlined above and would like to hear more, please contact a member of our expert team who would be more than happy to run through the details and outline how we can help you make the most out of the fantastic tax efficiencies that Cyprus has to offer.

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Are you an aspiring entrepreneur with a groundbreaking idea and the drive to see it flourish? Look no further than Portugal’s Start-Up Visa Program! This initiative welcomes foreign innovators like yourself, offering a streamlined path to residency or citizenship, and the chance to establish your business in a thriving European hub.

Why Portugal?

Portugal has rapidly become a magnet for entrepreneurs and is lauded for its:

• Supportive Ecosystem: A network of business incubators, co-working spaces, and government agencies provide guidance, resources, and funding opportunities to help your start-up take root.
• Favourable Tax Environment: Portugal offers competitive tax rates for both companies and individuals:
  • Individuals: under certain conditions, individuals may benefit for the favourable tax regime called the NHR – see here for more details. Other advantages may still exist for those not eligible for NHR.
  • Corporate: Taxes from 12.5% apply to start-ups in Portugal mainland – however, making use of the Madeira International Business Centre is an alternative option which provides an attractive tax rate of 5%. Read here for more details.
    • Further, government support programs are available in Portugal to support start-ups.
• High Quality of Life: Portugal boasts a stunning coastline, rich culture, and a welcoming population, making it an ideal place to live, work, and raise a family.
• Doorway into Europe: a gateway into the world’s largest trading bloc with access to a favourable business with clients, suppliers, grants and beneficial tax regimes

Furthermore, Portugal is rapidly emerging as a significant player in the global start-up landscape, with several companies achieving unicorn status and attracting significant investment. This thriving ecosystem presents a compelling opportunity for ambitious entrepreneurs seeking to establish their businesses in Europe.

The Start-Up Visa: Your Gateway to Success

The Start-Up Visa Program streamlines the visa application process for foreign entrepreneurs, allowing you to:

• Gain residency in Portugal: This visa allows you to live and work in Portugal, granting access to the European Union market.
• Bring your family: You can extend your visa to include your spouse and dependent children.
• Focus on your business: With residency secured, you can devote your energy to building your dream company.
• Obtaining Portuguese citizenship. After having lived in Portugal for five years, you and your family can apply for citizenship or permanent residency.

Eligibility and Requirements

To qualify for the Start-Up Visa, your business must meet the following criteria:

• Innovation: Your business idea must be deemed innovative by IAPMEI, the Portuguese public agency responsible for innovation in the economy and who evaluates applications. This typically involves presenting a unique product or service, deemed innovative, with high growth potential. Eligible criteria includes:
  • Opening or relocating a company in Portugal;
  • Focus on technology and knowledge;
  • Have the potential to attain, after five years after the incubation period, a turnover over 325.000€ per year, and/or assets value over 325.000€ per year.
• Job creation: Your business plan should demonstrate the potential to create qualified jobs in Portugal.

Portugal has many incubators to mentor and support new businesses. Explore a certified incubator and ask for a quotation of services. A signed contract with an incubator will be required when submitting for this type of visa option. A complete list of eligible incubators for the purposes of the start-up visa may be found here (IAPMEI – Página Inicial).

Minimum Stay Requirements:

• You must be present in Portugal, within a 24 months period, for 18 months in a row or 16 intermittent months to maintain your residency status.

Minimum Payments:

• There is no minimum investment required for the Start-Up Visa, unlike other residency programs in Portugal. However, you must demonstrate sufficient funds to support yourself and your dependents for the first year (as referred above).

Evaluation of the Visa

IAPMEI reviews and approves applications for the start-up visa. The evaluation of the visa is based on the degree of innovation, the scalability of the business, the market potential, the capacity of the management team, the potential for creating qualified employment in Portugal and the relevance of the applicant in the team.

The processing time is at least 6 months to a year.

Taking the Next Step

At Dixcart Portugal, we are passionate about helping aspiring entrepreneurs like you navigate the complexities of international business ventures. We offer comprehensive guidance and to ensure a smooth and efficient journey.

Contact us today to schedule a consultation and learn how we can help you turn your vision into reality in Portugal (advice.portugal@dixcart.com). Together, let’s launch your success story in Europe!

Additional Notes:

It is important to remember that this information is for general informational purposes only and does not constitute advice. It is highly recommended to consult with a qualified professional on your specific situation.