In the context of global deoffshorization and the fight against the erosion of the tax base, the Republic of Cyprus does not lose its attractiveness as a jurisdiction for easy business. The key advantage of the country remains the low corporate tax rate (12.5%) when located among the EU member States. Company registration in Cyprus is also interesting for the easiest, in comparison with other EU countries, opening a corporate multi-currency account in a local bank. Let’s try to understand why Cyprus remains the leader of the choice of foreign businessmen and investors who want to create an international company, conduct cross-border business or establish.
It should be noted that even in the conditions of prohibitions and restrictions on border crossing, company registration in Cyprus remains available; registration authorities continue to accept applications for incorporation, and also allow you to submit documents remotely. If you need a personal visit to the territory of Cyprus, our specialists organize private flights, when registering a company remotely in Cyprus, the client just needs to contact our lawyers and issue a power of attorney in the name of a representative of interests.
Favorable legislation of the jurisdiction
Every year, more than a thousand companies with foreign interests are registered in Cyprus for the purposes of international tax planning. Taxation in Cyprus allows you not only to significantly reduce business expenses, but also to avoid high tax rates on dividends and capital gains.
Registration of a company in Cyprus is particularly beneficial for holdings, intellectual property entities, and investment funds. The jurisdiction has a system of general corporate law that allows founders and shareholders to independently form a variety of agreements and contracts.
Active measures of the authorities
A logical question for our readers is why Cyprus, if loyal tax conditions are also available in other countries? Yes, there are a huge number of jurisdictions in the world with low taxes, but without a reputable reputation. Cyprus is one of the EU member States where a strong and stable economy is associated with loyal conditions in the following areas:
- Company registration
- Foundation of trusts and investment funds
- The opening of the trading companies
- Direct investment in economic citizenship programs
The authorities of Cyprus are directly interested in attracting foreign capital, so they create favorable conditions for investment from countries outside the European Union. Company registration in Cyprus is also popular as a way to protect your assets from aggressive political and economic measures in your own country. The jurisdiction is very interesting for its geographical location; it is a provincial island in the heart of three major continents; Africa, Asia and Europe.
International tax planning purposes
An interesting reason for the popularity of Cyprus for international business was the UK’s exit from the EU. The island state has a similar common law system to the UK, and also remains a full member of the EU, which leads to an increased number of requests to transfer British business to Cyprus jurisdiction. In the past few months, Cyprus has become a real hub for foreign businessmen who want to do business within the EU, but without high taxes and with full capital protection.
Another reason for the popularity of registering companies in Cyprus and transferring existing legal entities is the simple procedure for opening trusts and investment funds. Cyprus trusts are exempt from income tax and capital gains tax, and do not pay special contributions or other additional fees.