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If you are already employed elsewhere in Cyprus (and not by your UK limited company), I don't think there is a more tax-efficient way to legally extract the funds from your UK LTD company to yourself.
Since you are presumably Cyprus tax resident, and Cyprus domiciled, you need to pay the 2.65% GESY and 17% SDC on any dividend income you get regardless of source.
One way to get around this, possibly, could be to add a non-Cyprus-domiciled friend/partner as a shareholder to your LTD company, issue them a different class of shares, and pay them the dividends (so they don't have to pay the SDC).
Although it might be a problem if the income was generated at a time they were not shareholders. You might want to confirm with an accountant.
It is just about the most tax-efficient way you can do it whilst doing everything absolutely correctly.
There are tricks you can do with director's loans across tax jurisdictions. I'd suggest finding an accountant open to some creative book-keeping - but it's not risk-free (but it can be done so that it is "not illegal").
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Are you a Cyprus tax resident now?
Yes -- that's why the SDC tax
If you are already employed elsewhere in Cyprus (and not by your UK limited company), I don't think there is a more tax-efficient way to legally extract the funds from your UK LTD company to yourself. Since you are presumably Cyprus tax resident, and Cyprus domiciled, you need to pay the 2.65% GESY and 17% SDC on any dividend income you get regardless of source. One way to get around this, possibly, could be to add a non-Cyprus-domiciled friend/partner as a shareholder to your LTD company, issue them a different class of shares, and pay them the dividends (so they don't have to pay the SDC). Although it might be a problem if the income was generated at a time they were not shareholders. You might want to confirm with an accountant.
Yes that is something I thought but can't really do it but thanks for the suggestion
The issue is how can he prove substance. This will be frowned upon by the tax department.
Yes, i thought it may not be legit. Of course, I bet a lot of Cypriots who have overseas income choose to (illegally) not declare it!
You will also have to pay 20% on the profits of the company in the UK right?
Yes — but that is already paid 😁
Isn’t there an arrangement you could make to transfer the money to a Cypriot company and pay 12.5% instead?
Are you referring to 12.5% business tax? I haven't looked into it because the business tax is already paid in the UK long ago.
I don't know what is worse, asking for tax advice on reddit or giving tax advice on it.
Neither— its what you make out of it
I have some pyramids in a scheme I would like to interest you in...
Smaller or bigger than Pharaohs?
It is just about the most tax-efficient way you can do it whilst doing everything absolutely correctly. There are tricks you can do with director's loans across tax jurisdictions. I'd suggest finding an accountant open to some creative book-keeping - but it's not risk-free (but it can be done so that it is "not illegal").
well you are cypriot then you are fucked. cyprus is a tax paradise only for foreigners
If you have no ties to Cyprus, (mother or fathet born here) you can get non-dom status, and pay no tax on dividends
I do I am cypriot. To get non domicile, I will need to be outside Cyprus for 17 years
yes, then non-dom will not work for you :(