Cyprus

Located in the Eastern Mediterranean, the island of Cyprus is conveniently situated at the hub of three continents; Europe, Asia and Africa. The population of the Republic of Cyprus currently stands at approximately 850,000 with the majority residing in the four main towns of Nicosia (the capital), Limassol, Larnaca and Paphos.

As a former British Colony, English is widely spoken throughout the island with 80% of the locals being relatively fluent. The legal system is structured on its English counterpart and is based on common law with many Cypriot Lawyers being UK trained. The Republic of Cyprus is a free market economy providing vast opportunities for international business and efficient tax planning. With first class legal and accounting services, excellent air links with Europe, the Middle East and Asia, Cyprus is a perfect choice for business.

Cyprus is a leader amongst international tax planning jurisdictions and registration of a company in Cyprus is the ideal mechanism for protection for your business. In the last decade the role of Cyprus in international tax planning has increased dramatically. As a full member of the EU Cyprus has quickly gained a reputation as a reliable, legitimate jurisdiction with some of the lowest taxes in Europe in addition to having over 40 double tax treaties to assist in international tax planning.

Please contact us if you would like to receive additional information on Cyprus .

Important update for Compliance

Based on new austerity measures there will now be a stronger enforced requirement that Cyprus enterprises are up to date on Annual Returns filing. The penalty for not filing will either be a fine or the legal entity being struck off. Read more

Investment Firm

Eltoma can assist clients in setting up a Cyprus Investment Firm (CIF) which would provide them with a license that would enable them to provide the financial services including brokerage and portfolio management. A major benefit of operating a CIF is that there is no tax on the income that is generated from financial instrument transactions. Read more

Establishing and Maintaining a Holding Structure

The formation of a holding structure is a great way to make sure assets are well managed in a way that results in strong growth. By having a holding structure it will be easier to identify where improvements can be made that will improve profitability. Read more

Key Benefits of the Island

In addition to having the lowest tax rate in the EU and other big tax advantages for enterprises, overall it is a simple and straightforward process to incorporate a company in Cyprus. The corporate bank account can also be opened without delay and the directors of the entity do not have to be present in Cyprus. Read more

Procedure of company formation in Cyprus

A limited Liability Company is the most popular types of Cyprus offshore company. In order to assist with incorporation, Eltoma helps clients in completing several forms and providing the proper identification for the beneficial owner(s), director(s) and shareholder(s). Read more

Fee schedule

Prices start at 1350 EUR to incorporate a Cyprus legal entity. Price increase based on additional services required, nominee services, bank account opening, etc. Read more

Tax and Accounting Regulations

The following are the different types of taxes in Cyprus: Corporate Income Tax, Personal Income Tax, Value Added Tax (V.A.T.), Special Defense Contribution Tax, Capital Gains Tax, Immovable Property Ownership Tax, Inheritance Tax, Stamp Duty Tax. Entities are required to file every year and have an audit completed. Read More

Benefits of Trading Firms

There is no withholding tax in Cyprus. This applies to everything…dividends, interest, etc. In addition there is no capital gains tax. There is also no control of money as you will find in most EU countries. Read more

Benefits of Holding Companies

A few reasons why Cyprus is a great location for a holding entity include that it has the lowest tax rate in EU, 10%, tax free intercompany dividends and it is a trustworthy jurisdiction that is feature on the white list of OECD. When a Cyprus holding company disposes shares to the subsidiary or another one of the associated companies there is no tax liability. Read more

Voluntary Wind Up

The voluntary winding up of a Cyprus legal entity is a 3 stage process. Initially a board meeting must be held where it is decided to proceed. A liquidator must be appointed at the meeting and relevant documentation must be filed. Finally a Certificate of Dissolution must be obtained. Read more

Double Taxation Treaties

To avoid having to pay tax in more than one country, double taxation treaties have been established. There are a total of 45 such agreements that Cyprus has with other countries. By having these agreements withholding taxes on capital gains, royalties, interest and dividends can be eliminated in some cases. Read more

Acquire Temporary Work Permit for Cyprus Employees

Eltoma has experience in acquiring temporary work permits. These are for employees that come from non – European countries. An International Company must first apply to obtain a permit that allows them to employ non – European personnel. Read more