Nowadays the business marketing is becoming more and more competitive and companies have to do everything they can to maximize their income and success. In order to do that many companies are trying to come up with new ways to have competitive advantage and conduct business in a way that will make them stand out and be more profitable. Having that in mind they must figure out in which way they can minimize their cost and increase their income.
Thanks to its beneficial tax system, Cyprus is proving itself to be of the most popular jurisdictions for holding, trading and intermediary companies to conduct international business.
This is where we come in to help the companies that want to register in Cyprus and show the many benefits of establishing a business presence in the popular European country of Cyprus.
Below you will find some of the many advantages of registering a company in Cyprus and how it can benefit the business in the long term:
Advantages of Cyprus Company Formation:
- European jurisdiction;
- Advantageous vehicle for International Tax Planning and use; -0% tax on Dividends received (Dividends received by a Cyprus Company, on certain conditions, are free of tax making Cyprus the most competitive jurisdiction for holding companies); -0% withholding tax on Dividend payments (Dividends payable by a Cyprus resident company to its foreign shareholders (whether a company or individual) are not subject to any withholding tax in Cyprus);
- Full tax exception on the payment of dividends to its non-resident shareholders and has a real advantage over the other traditional holding jurisdictions;
- No capital gains tax is paid on the transfer of immovable property owned by a Cyprus Company abroad (outside Cyprus);
- 12, 5% Taxation for tax resident companies. (Starting from accounting period of 2014);
- 0% Taxation for NON tax resident companies;
- Double Tax Treaties (Cyprus has signed a considerable number of Double Taxation Treaties with various countries, to avoid the double taxation of income earned in any of the two contracting states);
- A minimum of one director is required for a Cyprus company formation.
- Director can be of any nationality and need not be resident, but Cypriot advisable for purposes of tax residency corporate directors are permitted;
- A minimum of one shareholder is required for a Cyprus company formation;
- Nominee Shareholders and Nominee Directors Allowed.
The law in Cyprus emerges out of a unique legal system, based on the Anglo-Saxon system, namely common law and equity, in a combination with the Continental system. Accordingly, various European law directives, regulations and international treaties, the constitution of the Republic of Cyprus (the supreme law of Cyprus), the legislation (statutory law) and the judicial precedent (case law), constitute the main sources of law in Cyprus.Read More
Cyprus is a member of the European Union and the Eurozone. It features on the white list of the OECD and has committed to the highest standards of transparency, assuming an early-adopter status for the automatic exchange of information on tax matters.
Use of the Cyprus holding company is widespread in project finance, cross-border transactions and global investment management.
Amongst other advantages, a Cyprus holding company can achieve low or zero withholding tax rates when extracting dividends from underlying subsidiaries by relying on either:
► an applicable double tax treaty, or
► the provisions of the EU Parent Subsidiary Directive.
Cyprus has concluded over 50 agreements for the avoidance of double taxation, and has one of the largest collections of treaties globally, including the United States of America, Canada, India, China, Russia, the majority of European countries and the C.I.S. countries.