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Benefits of registering a company in Cyprus

by Cyprus Digest team

Benefits of registering a company in Cyprus

So, Cyprus, is it offshore or tax paradise? Of course, before joining the EU, Cyprus was an official offshore. What did it lose after joining the European community? Cyprus no longer has the status of a classic offshore, however, it does not suffer from it. By registering a company in Cyprus with https://www.advancedconsulting.cy/ you get a profitable tax planning tool as the EU company with consistently favorable taxation.

Foreign investors continue to show continued interest in Cyprus. And the reason for the unfading trend is numerous favorable factors including a highly developed and fruitful business climate, combined with a low-income tax rate of 12.5%. The choice is well justified.

Features of business in Cyprus

Starting your business in Cyprus you should be aware of numerous positive aspects of local legislation and tax laws. Among them are the following:

  • Low-income tax rate of 12.5%, one of the lowest in Europe.
  • For all this, Cyprus is part of the EU, has access to European Directives, is subject to the rules for protecting the interests of investors and their information.
  • In addition, unlimited access to the European market, bonds, financing, etc.
  • Dividend tax in most cases is not levied.
  • Permanent missions of foreign companies in most cases do not pay income tax.
  • There is no withholding tax on the repatriation of profits, be it interest, dividends or royalties for non-residents.
  • There are no rules for thin capitalization.
  • Simple controlled foreign corporation rules.
  • Flexible and investor-friendly legislation.

Taxes are levied on Cyprus tax residents on total income. A company is considered a resident if management and control over activities are carried out in the country. Individuals are considered residents if they spent more than 183 days in a country in a calendar year.

The corporate tax, as indicated above, is 12.5%, while corporate tax is not paid on dividends from other Cypriot companies. Except if more than 50% of the activity of the paying company is associated with passive (investment) income and the paying company is subject to taxation lower than in Cyprus.

Advantages of starting a business in Cyprus today

Of course, 2013 hit hard on the reputation of both banks and local companies. But Cyprus has learned its mistakes and has been actively working in recent years to cover the damage.

If you decide to set up company in Cyprus, you will receive the following benefits:

  • Business reputation and stability.
  • The favorable geographical location on the intersection of trade routes, both in Europe and between continents.
  • The developed banking sector, a wide range of experienced specialists, a stable and modern legal system built on the legacy of Britain.
  • Growing economic indicators.

Cyprus has introduced new legislation on the protection and use of an intellectual property (IP), which helps to develop the IP sector, both in terms of development and in terms of licensing.

Moreover, talking about a full-fledged business, with employees and permanent residence on the island, Cyprus offers high living standards and relatively low housing prices.


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