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Editorial scope · audited 23 October 2026
Purpose: This page is a planning overview for a move from India to Cyprus. It organises the main departure, residence, company, banking and document questions to investigate.
Method: The page groups the move into a common sequence and highlights country-specific topics. It does not calculate an individual tax result or verify residence, treaty, immigration or document facts.
Limitations: The India departure rules and the Cyprus tax, residence and immigration statements still require qualified cross-border review before action. Official forms, thresholds and administrative practice can change.
The Liberalised Remittance Scheme caps individual outbound remittances at $250,000/year. For founders building global businesses, this throttles equity contributions to overseas entities. Establishing Cyprus residency removes the LRS constraint on capital raised post-emigration.
India's POEM (Place of Effective Management) rules can drag a foreign company into Indian taxability if directors / decision-making remain in India. Substantive Cyprus operations (Cyprus directors, Cyprus board meetings, real R&D) defend POEM challenges.
Indian residents are taxed on worldwide income; non-resident Indians are taxed only on India-source income. A clean residency cut-off using Cyprus's 60-day rule, paired with the Cyprus–India DTAA, prevents dual taxation on Cyprus-source dividends and capital gains.
India's 6% Equalisation Levy applies to non-resident e-commerce / digital service providers. A Cyprus-resident entity invoicing Indian B2B customers must navigate this carefully — it's manageable with the right structure.
Day-count plan for the relevant Indian financial year, FEMA / RBI residency declaration, LRS history check, RNOR status assessment.
Cyprus Ltd incorporated, Cyprus rental signed, Pink Slip (M61 / Category F as applicable) lodged with the Civil Registry.
TIN issued, Non-Dom application filed, GESY enrolment, first IR1 due the following 31 July.
60-day-rule conditions met, Cyprus board meetings minuted, India residency cleanly terminated, LRS no longer relevant.
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Legal Disclaimer: This page is for general informational purposes only and does not constitute legal or tax advice. Tax laws change frequently. Always seek independent professional advice tailored to your specific circumstances before making relocation or tax planning decisions.