Expat Taxation in Europe/Moving Checklist

Moving Checklist This chapter provides a practical checklist for individuals relocating to Cyprus for tax purposes. The steps are ordered roughly chronologically, from pre-departure through the first year of residency. This is a general guide - individual circumstances vary, and professional advice is recommended. Before You Leave: Home Country Tax Obligations [ ] Confirm your exit tax obligations (Germany, France, Netherlands, and others may tax unrealized gains on departure) [ ] Obtain written confirmation of your last tax year's liability from the home country tax authority [ ] Check whether your home country requires a formal "deregistration" for tax purposes (Germany: Abmeldung, Netherlands: uitschrijving, France: departure declaration to the fisc) [ ] If you own a business: assess whether the home country will argue that your company remains resident there (management and control test) [ ] Review any existing tax treaties between your home country and Cyprus Financial and Banking [ ] Open a Cyprus bank account if possible before arrival (some banks allow non-resident applications remotely) [ ] Keep your home country bank account open initially (closing too early can complicate proof of domicile change) [ ] Transfer investment portfolios gradually if needed; check for CGT implications at point of transfer Documents to Gather [ ] Passport (and/or EU National ID card if applicable) [ ] Birth certificate (certified translation if not in Greek or English) [ ] Marriage/civil partnership certificate if applicable [ ] Last 3 years of tax returns from home country [ ] Proof of employment or business income (contracts, invoices, bank statements) [ ] Academic and professional qualifications (for employment applications in Cyprus) On Arrival: First 30 Days Residence Registration (EU Citizens) [ ] Register with the local Municipal Authority or District Administration Office [ ] Apply for the Yellow Slip (MEU1 - Certificate of Registration for EU citizens) * Required documents: valid EU passport/ID, proof of accommodation, proof of sufficient resources or employment * Processing time: same-day to 2 weeks depending on office * Full guide: Cyprus Tax Life: Yellow Slip (MEU1) Guide Tax Registration [ ] Register with the Cyprus Tax Department to obtain a Tax Identification Number (TIN) [ ] If self-employed: register for tax purposes and declare business activity [ ] If a director of a Cyprus company: ensure the company's registered records reflect your involvement Healthcare [ ] Register with the General Healthcare System (GHS/GESY) at gesy.org.cy [ ] GHS contributions: 2.65% on most income types (including dividends for Non-Dom residents) [ ] Choose a personal doctor (General Practitioner) from the GHS provider list Banking [ ] Open a local bank account (Bank of Cyprus, Hellenic Bank, Eurobank Cyprus are the main options) [ ] Required: TIN, Yellow Slip, proof of address, passport, source of funds documentation First 90 Days: Status and Structure Tax Residency [ ] Verify that you meet the conditions for your chosen residency route: * Standard 183-day rule: no additional conditions * 60-Day Rule: confirm all five conditions are met - see Chapter 4 [ ] Accumulate documentation of days in Cyprus (travel records, utility bills, receipts) [ ] Request a Tax Residency Certificate from the Cyprus Tax Department once eligible Non-Dom Status [ ] Confirm you have not been domiciled in Cyprus for more than 17 of the past 20 years [ ] Register for Non-Dom status via the Cyprus Tax Department [ ] Notify the tax authority of any dividend income or interest income (to ensure correct SDC exemption) [ ] Detailed guide: Cyprus Tax Life: Non-Dom Status Guide Company Structure (if applicable) [ ] If forming a Cyprus company, ensure all substance requirements are met from day one [ ] Appoint local directors or ensure your own presence qualifies as management and control [ ] Obtain corporate TIN and VAT number if needed [ ] See Chapter 5 for full formation checklist First Tax Year: Annual Obligations [ ] File IR.1 individual tax return (due by 31 July of the following year, or 31 October for online submission) [ ] Declare all worldwide income if you are a Cyprus tax resident [ ] Pay any tax due (income tax, GHS) [ ] Retain documentation for Non-Dom claim (proof that no other country claims you as resident) [ ] If you own a Cyprus company: ensure IR.4 corporate tax return is filed (due 15 months after fiscal year end) Common Mistakes to Avoid Not formally leaving the home country: Simply moving abroad without deregistering can leave you liable for tax in the home country Failing the 60-Day economic nexus test: Having no company, employment, or directorship in Cyprus means you cannot use the 60-Day Rule even if you spend 60+ days there Rent in Cyprus but keep "center of life" abroad: Courts and tax authorities look at where children go to school, where your spouse/partner lives, where your social and economic ties are strongest Late bank account opening: Some Cyprus banks take 6-8 weeks to open an account; start early Missing the VAT registration threshold: If your turnover exceeds €15,600, you must register for VAT. Failure attracts penalties