CYPRUS

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. A 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, ProfinHold 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 €1550 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. 

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.

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 at 12.5 %, 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.

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.

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.

Acquire temporary work permit for Cyprus employees

ProfinHold 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

Key benefits

A combination of favourable factors have led to Cyprus becoming a popular jurisdiction to form a company and in the last decade the role of Cyprus in international tax planning has increased dramatically.

The admittance of Cyprus to the European Union in May 2004 has ensured advantages in terms of increased legitimacy and compliancy; Cyprus is now included in the Organisation for Economic Cooperation and Development (OECD) White List.

One of the major benefits of Cyprus is the Corporation Tax Rate; Cyprus has one of the lowest tax rates in the EU with only 12.5% Corporation Tax.

Additional benefits are as listed below:

• The incorporation process for a Cyprus company is simple and straightforward. A Cyprus company can be incorporated with only one Director and Shareholder in addition and there are no restrictions on foreigners acting as Director or Shareholder. 

• Prior to incorporating the name must be approved by the Registrar of Companies. Providing there are no companies with similar name approval will be granted quickly. Filing in English is permitted.
• Lowest corporation tax in Europe of 12.5%.
• 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).

Investment opportunities

The Cyprus Investment Promotion Agency (CIPA) is a registered not-for-profit company limited by guarantee and fully funded by the government of Cyprus, with the aim of encouraging investment in Cyprus.