EUROFINANZZA Tax Law Center Limited

An excellent European option for international trade.

Our Business Development Team will provide you all the assistance you may need, inclusive opening Bank Account in Offshore, and providing you Nominee Services for matter of higher degree of Anonymity and Confidentiality

Cyprus is one of the most popular locations in Europe for registering companies.

A convergence of elements, including favorable tax regulations, uncomplicated corporate legislation, and a consistent tax policy, has propelled Cyprus into emerging as a sought-after jurisdiction. Each year, a substantial number of new companies choose to establish themselves with the Registrar of Companies, thereby solidifying the country's standing as a prominent global financial center.

Cyprus boasts a well-established and sophisticated legal framework. As a former British colony, it follows common law principles and features business regulations akin to those of the United Kingdom. Given its European Union membership, a company registered in Cyprus reaps the benefits of operating within an EU nation. Moreover, the island is home to a proficient workforce that is not only well-educated and highly skilled but also proficient in English. Additionally, Russian serves as another prevalent language for business interactions.

Set up your Company in Cyprus

Advantages to register your Business Company in Cyprus

Registering a company in Cyprus offers several advantages that can be beneficial for both domestic and international businesses. Some of the key advantages include:

• Favorable Tax Regime
• Double Tax Treaties
• EU Membership
• Strategic Geographic Location
• Stable Economy and Legal System
• Banking and Financial Services
• Efficient Company Incorporation Process
• Attractive Intellectual Property (IP) Regime
• Dividend Participation Exemption
• Access to Treaty Benefits
• Attractive Holding Company Regime
• Political Stability

It's important to note that the advantages of registering a company in Cyprus can vary based on the nature of your business, your specific goals, and the regulatory landscape. Before making a decision, it's recommended to consult with legal and financial professionals who have expertise in Cyprus company registration and can provide tailored advice based on your circumstances.

And that’s why Eurofinanzza Business Development Team is Ready to Guide and Assist you on building the most suitable business structure accordibg to your needs.

Cyprus

Favourable Corporate Tax Legislation

Here are some facts about Cyprus' favorable corporate tax legislation:

Low Corporate Tax Rate:

Cyprus offers one of the lowest corporate tax rates in the European Union at 12.5%. This competitive rate contributes to its attractiveness for businesses seeking tax-efficient jurisdictions.

Wide Double Tax Treaties Network:

Cyprus has an extensive network of double tax treaties with over 60 countries, which helps to prevent double taxation on income earned in multiple jurisdictions and encourages international business activities.

Full Tax Exemption on Dividend Income:

Dividend income received by a Cyprus company from another company is usually exempt from corporate tax, provided certain conditions are met. This can facilitate efficient dividend repatriation within a corporate group.

No Withholding Tax on Outbound Dividends:

Cyprus does not impose withholding tax on dividends distributed to non-resident shareholders, making it a favorable location for international holding companies.

Capital Gains Tax Exemptions:

Profits from the sale of securities (shares, bonds, debentures) are generally exempt from capital gains tax in Cyprus. This makes it attractive for investment holding and trading activities.

Attractive Intellectual Property (IP) Regime:

Cyprus offers a beneficial IP regime, allowing for substantial deductions on qualifying IP-related income. This encourages businesses to develop, hold, and exploit intellectual property from within Cyprus.

No Tax on Profits from Permanent Establishments Abroad:

Cyprus does not impose tax on profits earned by its resident companies from their permanent establishments abroad, further enhancing its appeal for international expansion.

Group Loss Relief:

Cyprus introduced a group loss relief provision, enabling companies within a group to offset their losses against the profits of other group companies, fostering operational flexibility.

No Withholding Tax on Interest and Royalties:

Interest and royalties paid from Cyprus to non-residents are generally not subject to withholding tax, making it an attractive jurisdiction for cross-border financing and licensing activities.

Advance Tax Rulings:

Cyprus tax authorities offer the option to obtain advance tax rulings on various matters, providing certainty and clarity to businesses planning their activities.

Non-Domiciled Rules:

Cyprus offers favorable non-domiciled rules for individuals, allowing them to be taxed only on income generated in Cyprus, making it appealing for high-net-worth individuals seeking to optimize their tax exposure.

These features collectively establish Cyprus as a jurisdiction with favorable corporate tax legislation, encouraging both domestic and international businesses to consider it for various business activities and structures.

Business entities in Cyprus

Cyprus Resident vs. Non-Resident company

A Cyprus company, under the Income Tax Law of 2003 (118(I) 2002) can be either Tax Resident in Cyprus or Non-Tax Resident.

Tax Resident Company

A tax resident company is a company whose management and control is exercised in Cyprus. Hence the majority of directors must be in Cyprus. It pays 12,5% tax on its worldwide business profits (5% on interest income, 0% on dividend income). It can claim relief under the Cyprus double tax treaty network.

Non-Resident Company

A non-resident company is a company where the management and control is exercised outside of Cyprus. Hence the majority of the directors must be outside Cyprus. A non-resident company is taxable at 0% on its worldwide income. Any income generated in Cyprus is taxed at 12,5%.

Main Uses of a Company in Cyprus

Companies registered in Cyprus serve a variety of purposes and can be utilized for different business activities. Some of the main uses of a company in Cyprus include:

Consultancy and Advisory Services:

Companies can offer consultancy and advisory services to businesses entering the Cypriot or European markets, helping them navigate regulatory and business challenges.

International Trading:

Cyprus is strategically located at the crossroads of Europe, Africa, and the Middle East. Companies can use Cyprus as a base for international trading and distribution, taking advantage of its well-regulated business environment and favorable tax regime.

Cyprus Holding Company:

Cyprus is often used as a jurisdiction for establishing holding companies. These companies can hold and manage investments, subsidiaries, and assets in various locations, benefiting from Cyprus' tax advantages and network of double tax treaties.

Cyprus Investment Holding:

Cyprus companies can hold shares in other companies, facilitating investments in various sectors. Dividends received from subsidiary companies are often exempt from corporate tax, promoting efficient dividend flows.

Intellectual Property (IP) Management:

Cyprus offers a favorable IP regime, allowing companies to manage and license intellectual property assets from within the country, leading to potential tax benefits.

Group Financing:

Cyprus can be used for group financing activities, including providing loans and financial services to affiliated companies within the group.

Real Estate Investments:

Companies can be used to hold and manage real estate properties, taking advantage of Cyprus' growing real estate market and tax benefits.

Shipping and Maritime Activities:

Cyprus has a significant maritime sector. Companies can be established to own and operate vessels, enjoying benefits such as the tonnage tax system and a favorable maritime legal framework.

E-Commerce and Digital Services:

Cyprus can serve as a location for companies engaged in e-commerce, online services, and digital businesses, benefiting from its strategic location and modern infrastructure.

Professional Services:

Companies in Cyprus can offer a range of professional services, including legal, financial, consulting, and more, to clients both domestically and internationally.

Asset Protection and Estate Planning:

Cyprus' strong legal framework and asset protection laws make it a suitable location for individuals and families looking to safeguard their assets and plan their estates.

Cross-Border Transactions:

Companies in Cyprus can facilitate cross-border mergers, acquisitions, and joint ventures, benefiting from the country's advantageous tax treaties and regulatory environment.

Research and Development (R&D):

Cyprus provides incentives for research and development activities. Companies engaged in R&D can benefit from tax credits and deductions for qualifying expenses.

How we can Help You!

Should you have any question or matter you would like to discuss or clarify with us, or

Should you like to receive further Information about our services and fees,…

Our multilingual team of business advisors is happy to assist you with all upcoming questions and issues in relation to your application.

You may call or email us, and we will be happy to assist you in a fast and efficient manner.

Contact us today for an initial complimentary consultation and find out how we can help you achieve your investment goals!

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Our offices

London, UK

Registered Office

95, Wilton Road, Suite 717

SW1V 1BZ London

Phone: +44 203 769 1690

customer.service.london@eurofinanzza.com

Wilmington, Delaware, USA

Representative Office

1201, N. Orange Street, Suite 7160

Wilmington, DE 19801

Phone: +1 302 384 9824

customer.service.wilmington@eurofinanzza.com