Cyprus – Key Benefits
Registration of a company in Cyprus is the ideal mechanism for protection for your business and a perfect instrument for international tax planning. In the last decade the role of Cyprus in international tax planning has increased dramatically.
Cyprus was admitted as a full member of the European Union in May 2004 and this has provided the jurisdiction with many advantages in terms of legitimacy and compliancy. One of the major benefits of Cyprus is the Corporation Tax Rate. Cyprus has the lowest tax rate in the whole of the EU with only 10% Corporation Tax. Some opf the other benefits associated with Cyprus IBC's are listed below:
- The incorporation process for a Cyprus Company is simple and straightforward. Only one director and one shareholder are required to form a Cyprus Company and there are no restrictions on foreigners acting as a director or a shareholder of a Cyprus Company. Prior to incorporating an IBC the name must be approved by the Registrar of Companies. Providing there are no companies with similar names approval can be granted quickly. Filing in English is possible.
- Lowest corporation tax in Europe of 10%
- Favourable tax regime for Cyprus holding companies, including no tax on consolidation, no controlled foreign company (CFC) rules, etc
- No taxation on inward or outward dividends and no Capital Gain Tax (CGT) on sales of securities. Due to this many security traders have trading offices in Cyprus.
- There are more than 40 double tax treaties (DTT) concluded with other countries
- A bank account for a Cyprus company can be open quickly and efficiently without the directors of the company being present. To open a bank account remotely notarisation and legalisation of documents of directors and shareholders of Cyprus company is required
- Cyprus has adopted International Financial Reporting Standards (IFRS)