Client Background: Kevin, an ambitious entrepreneur from Italy, started his business ventures in Italy and Malta. As a visionary and family man, he was constantly looking for ways to expand into regions that not only offered business growth opportunities but also provided a new home base for his family. After exploring multiple locations, Kevin found Cyprus to be the perfect match, driven by both personal and business incentives.
The Challenge: Kevin had already successfully expanded his innovative business model in Italy and Malta. He was looking for a similar jurisdiction to replicate this model, offering also favorable conditions for investment. Beyond business, he wanted to set up a second home where he and his family could enjoy a quality lifestyle, and Cyprus offered the perfect balance of both. However, Kevin wasn’t looking for a quick-fix solution; he wanted to carefully plan his entry into Cyprus, ensuring compliance with local regulations and maximizing the benefits of non-domiciled status.
The most considerable challenge was navigating Cyprus’ legal and tax landscape, ensuring his business operations could smoothly transition while also securing tax residency in an efficient manner.
Solution: Eurofast’s Tailored Approach Eurofast provided Kevin with a customized solution that aligned with his long-term vision of both personal and professional growth. Eurofast’s extensive knowledge of Cyprus’ tax benefits for non-domiciled individuals played a crucial role in Kevin’s decision to relocate. With their expertise, Kevin was able to leverage the following:
- Non-Dom Tax Status: Eurofast guided Kevin through the steps to obtain non-domicile tax status in Cyprus, which – among other things! – exempts him from special defense contribution (SDC) tax on his global dividend and interest income.
- Corporate Tax Efficiency: Cyprus offers a low corporate tax rate of 12.5%, and with over 60 double-tax treaties in force, Kevin’s company could benefit from reduced tax on profits made in Cyprus and abroad.
- Flexible Residency: Eurofast introduced Kevin to both the 183-day and 60-day rules for tax residency. Kevin chose the 183-day route, securing tax residency for himself and his family.
- Strategic Business Setup: Eurofast helped Kevin establish his company in Cyprus, ensuring compliance with local laws while minimizing operational costs. The island’s English common law system and investor-friendly policies made it an ideal jurisdiction for expanding Kevin’s business model.
Results: A year after visiting Eurofast’s offices in search of a second base, Kevin has successfully established a thriving business in Cyprus while enjoying the benefits of the non-domicile status. His company has already begun operations, contributing to the local economy, and Kevin has established Cyprus as his family’s new home base.
Not only has he benefitted from a favorable tax regime, but Kevin and his family are also enjoying the lifestyle advantages that drew them to the island—its sunny climate, friendly locals, and quality of life.
Conclusion: Eurofast’s comprehensive understanding of Cyprus’ tax and business environment enabled Kevin to expand his entrepreneurial venture seamlessly while securing personal benefits for his family. Cyprus proved to be the ideal jurisdiction for balancing business growth with personal aspirations, and Eurofast played an instrumental role in making that vision a reality.
Eurofast’s Role in Kevin’s Success: Through our client-centric approach, Eurofast ensured that Kevin’s transition to Cyprus was smooth, efficient, and compliant with all legal frameworks. Our hands-on support and deep expertise in Cyprus’ legal, tax, and business landscape provided Kevin with the confidence he needed to embark on this new chapter.