Non-Domiciled Status in Cyprus EMILY YIOLITIS.

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Sophie Randall
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1 Non-Domiciled Status in Cyprus EMILY YIOLITIS

2 About Harneys BVI, Bermuda, Cayman, Cyprus, Anguilla and Mauritius law 14 offices around the world More than 15 languages Over 40+ partners; more than 100 qualified lawyers Associated corporate and fiduciary services business

Residents of the World Like many fellow rich citizens, French actor Gerard Depardieu has taken evasive action against a series of tax rises enacted by France's

Depardieu was later granted a Russian passport and is registered as a self-employed businessman at the remote region of Mordovia, Russia.

3 Residents of the World Like many fellow rich citizens, French actor Gerard Depardieu has taken evasive action against a series of tax rises enacted by France's Socialist president François Hollande, by taking a Belgian residence. Depardieu was later granted a Russian passport and is registered as a self-employed businessman at the remote region of Mordovia, Russia. The British Formula 1 driver Lewis Hamilton, is another example of tax exile as the driver moved to Switzerland avoiding a tax bill of tens of millions of pounds. After several years living in Switzerland, Hamilton moved to the exclusive tax haven state of Monaco in 2012.

4 The Concept of Domicile In accordance with the Wills and Succession Law, Cap. 195, every person at any given time has either: a Domicile of Origin: a domicile acquired by a person at birth, or a Domicile of Choice: a domicile (not being the same as the domicile of origin) acquired or retained by a person by his/her own act.

5 Tax Implications of Domiciled Status In order to be subject to Special Defence Contribution Tax, an individual must be both tax resident (183 days) and domiciled in Cyprus. You are considered domiciled in Cyprus either: (a) if you have a domicile of origin here (see exemptions below); (b) you have been tax resident here for 17 out of the last 20 years. If you have a domicile of origin in Cyprus you may still be apply for non dom status if you have obtained a domicile of choice in another country, provided you were not a tax resident of Cyprus for at least 20 consecutive years before the tax year of assessment OR if you have not obtained a domicile of choice elsewhere but nevertheless have not been a tax resident of Cyprus for a period of 20 years prior to the introduction of the Cyprus non dom regime. Non domiciled individuals are exempt from the special defence tax therefore they are exempt from taxation on both dividends and any passive interest that they receive.

Employment Relief The following exemptions in relation to income tax are available for individuals moving to Cyprus to commence employment: Individuals with an employment income of up to a maximum of

6 Employment Relief The following exemptions in relation to income tax are available for individuals moving to Cyprus to commence employment: Individuals with an employment income of up to a maximum of EUR 8,550 annually are entitled to an exemption of 20% for a period of 5 years. Individuals with annual remuneration in excess of EUR 100,000 are entitled to an exemption of 50% of their employment income for a period of 10 years if the individual was not a resident of Cyprus before the commencement of his/her employment in Cyprus.

The Application and Eligible Persons In order to obtain a non-domiciled status, an application for the issuance of a registration certificate (or yellow slip) must be filed at

7 The Application and Eligible Persons In order to obtain a non-domiciled status, an application for the issuance of a registration certificate (or yellow slip) must be filed at the Ministry of Interior by an EU citizen. The four types of persons eligible to apply for non-domiciled status are: 1. Self-employed 2. Visitors 3. Retired 4. Employees of companies

8 Registration Certificate for Family Members An EU citizen may also apply and obtain a registration certificate for his/her family members by providing a list of specific documents for every member.

9 Why Cyprus? Complementing the tax legislation are: the guaranteed sunshine, the island s ideal geographical location, its EU membership, its robust legal system and reliable political environment, as well as its well-educated and highly professional workforce.

10 Cyprus is a serious contender among jurisdictions where wealthy individuals should consider residing in. Thank you

Obtaining Cypriot citizenship by investment

Citizenship by investment Cyprus Obtaining Cypriot citizenship by investment Cyprus offers one of the most attractive citizenship schemes with full rights as a European Citizen Cyprus is at the crossroads