Doradztwo podatkowe, fundusze inwestycyjne

Why Cyprus?

Advantages of a Cyprus offshore company:

• Non offshore, but EU status.
• Low taxation. Cyprus is the “lowest-tax EU Jurisdiction” that is not offshore. The standard corporate tax rate of 10% (0% for shipping companies, 4.25% for maritime management companies) is the lowest in the European Union, and the lowest “non-offshore jurisdiction corporate tax rate” in the world.
• Cyprus is not considered to be a tax haven but a tax incentive country
• Investor-friendly Tax Authorities who are always keen to help foreign investors.
• Confidentiality in all business transactions, which the Cypriot Authorities have perfected, in respect to the activities of nearly all commercial sectors.
• Possibilities for tax planning in order to legally lower taxes even further (in some cases to 0%)
• The existence of double tax treaties combined with the low tax paid by offshore entities offer tremendous possibilities for international tax planning through Cyprus
• No withholding of tax on dividends dividend payments to non tax residents.
• No capital gains tax
• Exemption from withholding tax on the repatriation of income either of dividends, interest and royalties
• The foreign beneficial owners of Cyprus Companies, Branches and Partnerships are not liable to additional tax on dividends or profits over and above the amount paid or payable by the respective legal entities.
• The identity of the owners can be kept secret, and nominee shareholders may be used.
• Access to EU directives
• The “out-of-Cyprus profits” of Cyprus Non-Resident Companies are not taxable
• Freely transferable accounts of any currency may be kept either in Cyprus or anywhere abroad without any exchange control restrictions.
• No exchange control restrictions are granted by the Central Bank of Cyprus.
• Exemption from stamp duty on any contracts relating to assets situated outside Cyprus or business affairs that take place outside Cyprus.
• Offshore entities are exempt from VAT on their trading activities. Furthermore they do not pay VAT on telecommunication services and on goods eligible to be purchased duty free.
• Ability to register for EU VAT in Cyprus.
• The professional and management services offered in Cyprus are of a very high standard.
• Possibility to obtain Advance Tax Rulings.
• Absence of strict transfer pricing rules.
• Low personal tax rates that reach a maximum of 30% for income over 35.000 EURO and substantial relief for overseas employment and for non-residents taking up employment in Cyprus for the first time.
• Low duties - taxes on the establishment of companies.
• Very low expense level (fees) for financial and professional service provision compared to other EU Jurisdictions.

Other advantages of more general nature that Cyprus can offer include:

• Geographical location (at the crossroads of three continents)
• A stable economy in a western-type democracy
• Legal system based on the English Law
• Excellent telecommunications and air connections
• Excellent banking facilities with worldwide networks
• High level of professional services
• Readily available and highly trained local staff
• Relatively low cost of living
• Low crime level
• Excellent schools up to university level
• Excellent climate