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  • Miranda Pambori

REASONS TO INCORPORATE A COMPANY OR TRANSFER ITS SEAT IN CYPRUS

Cyprus is generally known for its low-tax jurisdiction and favourable, company-oriented perspective. Paired with Cyprus’s membership in the European Union (the ‘‘EU’’) and the consequent opportunities this carries for businesses and professionals, Cyprus has been established as a desired destination to do business.


Incorporation of a Cyprus Company

  • a Cyprus Company, may be incorporated within 10 working days, with 100% foreign ownership (of any nationality),

  • the physical presence of the beneficial owner in Cyprus is not required,

  • all procedures may be done remotely, via emails and couriers,

  • the annual costs and management of a Cyprus Company are very low,

  • for a Cyprus Company a bank account can be opened in any country,

  • the EU VAT registration can be acquired within 48 hours,

  • a long stay visa and a renewable work permit are supplied to the Ultimate Beneficial Owners (‘‘the UBO’s’’) and their families, and

  • provided 7 years have of stay in the Republic of Cyprus are established, both the UBO’s and their family may acquire an EU passport.

Re-domiciliation of a Foreign Company into Cyprus

Apart from initial incorporation of a company in Cyprus, the simplicity of the transferring procedure, makes the Republic of Cyprus an attractive country for a foreign company to redomicile to:


Other benefits include:

  • the corporate tax rate in the Republic of Cyprus amounts to 12,5% - the lowest corporate tax rate in Europe;

  • dividend between Cyprus companies is tax exempt;

  • sale or transfer of shares in a Cypriot company is fully exempted (exception: where the company owns immovable property in the Republic of Cyprus);

  • up to 80% tax exemption on profits derived from licensing or exploitation and gains on disposal of Intellectual property;

  • royalties received by a connected company registered in the EU is exempt from tax;

  • large number of double tax treaties are in force, with over 50 countries Russia, China, US and the UK;

  • no Inheritance Tax;

  • no Wealth Tax;

  • no Controlled Foreign Corporation Rules and Legislation;

  • Cyprus being an EU Member State, the applicable EU Directives and Regulations will also be applicable for the re-domiciled company;

  • a legitimate opportunity for (foreign) businessmen to conduct business within the Republic of Cyprus, Europe and Internationally.






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