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

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.

“Several of my partners changed their tax residency to Cyprus: to keep the status you only need to spend two months a year there – but most of them eventually moved full time. When we compared our expenses and tax rates – the choice was obvious. Astons helped almost everyone, so I just passed the contact to my assistant, and everything was done turnkey, including the company setup in Cyprus.”

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.

• 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.

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.

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.

• €355,000 – Real estate purchase
• €30,000 – Taxes and fees

Additionally:

Insurance, notary, translations

Astons services: full legal support

Total Investment: €385,000 (excluding additional expenses)

James transferred part of his team to Cyprus, became a resident, and now benefits from the island’s tax system while expanding his business. His children attend a British school, and he spends most of the year on the island, balancing work and a fulfilling personal life.

• Immediate permanent residency (no need for renewals every 2–5 years)
• No exams, interviews, or mandatory residency (only one visit every 2 years)
• Ability to include spouse and children up to age 25
• European infrastructure, safety, excellent climate
• Tax optimisation opportunities
• Tax residency with only 60 days per year in Cyprus
• Access to EU markets

Astons lawyers understand European legislation and provide strategic long-term immigration solutions. With over 15 years of experience on the island, we’ve built strong partnerships with top developers. Our global company and Cyprus office assist clients from the first call to receiving their PR cards.

We manage the entire process: from selecting suitable real estate to legal paperwork and obtaining your residency card. Book a consultation – take the first step toward life in one of Europe’s most stable and welcoming destinations.