In this article, we examine the case of a client, let’s call him Mr. X, residing in Cyprus under the BCS/BFU framework.
The BCS/BFU (Business Facilitation Unit / foreign-interest company) framework applies to non-EU nationals employed by eligible Cyprus companies in Cyprus.
Background
Mr. X relocated to Cyprus in 2018 under a BCS employment permit. His wife, who we’ll call Mrs. X, relocated with him as his dependant spouse.
Over the years, Mr. X changed employers twice, while continuously remaining employed by BCS/BFU companies.
At a later stage, the couple decided to establish their own Cyprus company (“CC”). At the time, someone advised* them that the shares should not be held directly by the BCS permit holder and were therefore placed under Mrs. X. This was half right, as Mrs. X’s immigration status also created restrictions in relation to holding the shares.
