Offshore Companies in Cyprus

If you want to set up an offshore company in Cyprus, you have to learn as much as you can about the advantages and disadvantages of doing business in this country. Most people will tell you it is very hard to find any disadvantages. However, before you decide to do this, find a good professional who knows the laws of Cyprus and ask for some advice.

Why Cyprus?

Cyprus has a role in international tax planning. The country has attracted numerous legitimate companies that have set up bona fide offices there, but this country is not a tax haven.

Cyprus offshore companies benefit from a tax rate of 4.25 %. The country has a network of double tax treaties. The treaties with former Soviet states and Eastern European countries make Cyprus an attractive place for investors.

The following countries have double tax treaties with Cyprus: Austria, Armenia, Bulgaria, Belarus, Canada, Belgium, Czech Republic, China, France, Denmark, Hungary, Greece, Egypt, India, Italy, Germany, Kyrgyzstan, Ireland, Mauritius, Kuwait, Malta, Poland, Moldova, Russia, Norway, Slovak Republic, South Africa, Romania, Tajikistan, Sweden, Singapore, Syria, Thailand, Turkmenistan, Uzbekistan, The United States of America and the United Kingdom.

There are many possibilities for international businessmen, including offshore companies formation, registration of ships under the flag of Cyprus, opening offshore baking units, establishment of offshore trust, etc.

There are nearly 60,000 offshore entities in Cyprus, and thirty offshore banks. Only banks with good international reputation can operate in Cyprus.

What Are the Advantages of Setting up an Offshore Company in Cyprus?

• There is no withholding tax on interest, dividends or royalty payments

• Salaries of an offshore company’s foreign employees who work outside Cyprus are tax exempt completely.

• Low tax rates

• Tax exemption given on capital gains

• There are no exchange controls

• Banking facilities are great

• Annual tax rate is low (10 %)

• Cyprus is a good place for setting up an import/export company

A company that is incorporated in this country will not be considered a tax resident if it’s not controlled and managed in Cyprus. Such companies must have majority of managers and directors residing outside the country. The board meetings also have to be held outside Cyprus. If a company is incorporated in this country, but it is not a tax resident, it will not be subject to taxation in Cyprus.

Find out more about  company formation in Cyprus.

To find out how to register a company in Cyprus, visit  Transinc Global Services.