How Astons Secured Cyprus Permanent Residence and Tax Optimization for a London IT Entrepreneur

Situation

James is a British entrepreneur in the IT sector and owner of an international company. Like many UK-based businesspeople, he was affected by rising taxes in the UK: by 2024, the combined corporate and personal tax rate reached nearly 50%. James was paying 45% income tax as an individual, and his company was required to pay 25% on corporate profits, including income from foreign sources. On top of that, employer social contributions were significant.

Solution: Cyprus Permanent Residency by Investment with Astons

By the time James consulted with Astons lawyers, he already knew he wanted Cyprus PR and was familiar with the programme’s specifics. Through real estate investment, he obtained PR with the right to live on the island without cutting ties with the UK.

James planned to relocate with his wife and two children and was particularly focused on finding a property in a quality neighbourhood with a British school nearby. If needed, the family could leave the country: only 60 days of physical presence are required to maintain tax residency. Astons also helped James set up a company in Cyprus, significantly reducing his tax burden. Cyprus offers one of Europe’s most attractive tax optimisation regimes.

Why Cyprus is a Tax Haven for Entrepreneurs in Europe

• Special IP-Box tax regime – IT companies can reduce tax on IP income (patents, software, licences, royalties) to 2.5%
• 12.5% corporate tax – one of the lowest in the EU
• Tax freedom for non-domiciled residents – no tax on dividends, interest, or capital gains
• Personal income up to €19,500 is tax-free, with a moderate progressive scale beyond that
• No property tax since 2017
• Flexible residency model – only 60 days per year required to obtain and maintain tax residency
• Transparent and straightforward interaction with tax authorities

Compared to the UK’s 45% income tax (on income over £125,140), 20% capital gains tax, and 13.8% employer National Insurance, Cyprus offers clear advantages.

Tax Comparison

Steps to Obtain Cyprus PR with Astons

1. Audit, strategic consultation, and client profile check

Astons conducted a pre-screening to ensure James met the requirements of Cyprus migration authorities. All clients who pass Astons’ internal compliance successfully obtain residency or citizenship.

2. Property selection

We offered James options from our verified property base with strong investment potential. He selected a modern villa in Germasogeia for €355,000: terrace, panoramic windows, pool, covered parking. The villa was near an English-language private school and close to homes of friends. All documentation was handled remotely.

3. Reservation and document preparation

Once purchase terms were agreed, Astons prepared the reservation agreement, involved lawyers, and began compiling the PR application documents. James paid a 10% deposit – a programme requirement when applying. The process was carried out remotely.

4. Application submission and approval

After the documentation was ready, the remaining payment for the property (including 19% VAT) was made. Our lawyers submitted the full application to the Civil Registry and Migration Department of Cyprus.

5. PR approval

Once approved, James and his family received a migration certificate and flew to Cyprus to submit biometrics – a mandatory visit within a year. He then received his PR card, which grants the right to live legally in Cyprus, become a tax resident, access healthcare and banking, and register a company.

6. Company formation

To further optimise taxes, James requested an additional Astons service – setting up a legal entity in Cyprus and applying for Non-Dom status. This also facilitates smoother collaboration with EU partners for UK entrepreneurs.

Non-Dom Regime in Cyprus – How It Works

Cyprus offers a special Non-Dom tax regime for new tax residents – those not born in Cyprus and who haven’t been tax residents there for at least 17 of the past 20 years. It exempts foreign passive income (e.g. dividends, interest, rental income) from the Special Defence Contribution (SDC).

Under normal taxation, SDC is 17% on dividends and up to 30% on interest. With Non-Dom status, these taxes are fully waived. As a result, passive income can be effectively tax-free – a key attraction of Cyprus for global investors and entrepreneurs.

To benefit, one must become a Cyprus tax resident (via either the 183-day or 60-day rule). The process involves registering as a tax resident and submitting a special declaration to the Tax Department. Once registered, the tax exemption applies automatically to all eligible income.

Investment Summary