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.