No matter what attacks Cyprus is dealing with from the Euro Group, the island remains well on its feet and is turning into a model of new progressive projects that attract sophisticated investors, visitors and tourists. Such projects are:
These projects boost the economy and create new jobs at a time of a global financial recession. There is no reason why Cyprus cannot take a giant leap forward to a new economic model and reshape its destiny as progressive, prosperous and secure European nation.
There are a number of factors which need to be considered when choosing the appropriate tax jurisdiction. Our law firm will assist in making the proper decision as we have the expertise and qualified professional legal consultants who are always updated with the latest global economic situations to consult you in developing the proper tax structure.
To choose a specific jurisdiction, the most essential factor to consider is the corporate tax rate. Other than the tax rate, further examination needs to be done to determine what the effective tax rate is after considering aspects such as double-tax treaties between countries, tax exemptions, tax structuring and more in order to reach the actual rate of tax which will apply under a specific tax structure.
- Cyprus companies are taxed at the rate of 12.5% on profits generated in Cyprus and on worldwide basis. One of the lowest tax rates in Europe.
- A Cyprus Holding Company is widely used as an ultimate or intermediate holding company to minimise or eliminate taxes arising on dividend income or gains from the disposal of shares.
Even though technology has advanced and it is possible to operate business remotely using online tools, geographical location is essential when choosing a tax jurisdiction. Certain tax jurisdictions require clients to conduct in-country annual board meetings so it is important to understand the frequency and costs of travel and accommodations expenses.
- Cyprus is in the center of the Mediterranean Sea located between Europe, Asia and Africa. Strategic location at the crossroads of three continents which make the country the perfect location and easy access.
Costs – setup and fees
The formation of a company of a specific jurisdiction and the operation of a tax structure is an essential factor in establishing whether the tax savings achieved are suitable the costs incurred. Service providers in various jurisdictions tend to charge different levels of fees since it depends on the cost of operation in their particular country as well as the range of expertise on offer.
- Setting up a Cyprus Company costs less than setting up any other company in Europe.
- Cyprus currently has the highest percentage of citizens of working age who have higher-level education in the EU, therefore, the service is professional.
- Our firm has qualified lawyers that can assist quickly, efficiently and professionally.
Efficiency and promptness
The ability to quickly establish an operational structure is determined not only by the service provider but it is often an issue of local legislation as well as efficiency of government departments. Especially for a private equity fund which is looking to execute a particular transaction within a short period of time.
- There are always Cyprus Shelf Companies that you can operate the same day.
Quality of service (tax, legal, fiduciary, banking)
The international tax planning sector is jagged and combines both local performance as well as a number of increasingly international performances. It is often the case that the complexity of a transaction or structure will determine how sophisticated a service provider you need to engage.
- Our firm provides international fiduciary services, from simple asset protection to complex structures. Our firm can assist in setting up trust structures for various purposes considering local legislation and international legal aspects.
- Advising and assisting in the formation of an appropriate business vehicle
- Acting as Nominee Director and/or Shareholders
- Acting as Local Non-Executive Directors
- Providing Registered office address and all related company activities
- Acting as Company Corporate Secretary
Purpose of tax structure
When a tax structure is established for single investment into a specific jurisdiction, the process for choosing a tax jurisdiction is not the same compared to a tax structure where a long-term personal wealth vehicle is being formed and this will depend on other aspects such as the provision of Private Banking services in a particular jurisdiction as well as confidentiality, and of course double-tax treaties.
- The Eurozone political economic decisions regarding Marfin Bank (Laiki Bank) was made by Eurogroup and it was politically inevitable.
- Cyprus has a variety of banks other than Laiki that remain healthy, such as Hellenic Bank, Alpha Bank, Piraeus Bank, National Bank of Greece, Emporiki Bank, FBME Bank, and of course there are many foreign banks in Cyprus as well.
- You can also open a bank account outside of Cyprus in foreign banks such as: CIM Banque SA, Baltic International Bank, Banque Internationale a Luxembourg SA, Danske Bank, HSBC, UBS, Emirates NBD, ABLV, Maybank International, Rietumu Bank, BOV Bank, Emirates NBD Bank. Our firm can open a bank account for you anywhere in the world with any bank you prefer that is not listed here.
- When forming a Cyprus Company there is confidentiality. The BO can remain fully anonymous by appointing nominee shareholders, directors and a secretary. The interest of the beneficial shareholder can be safeguarded by the issue of a declaration of trust by the nominee in favour of the beneficial shareholder or shareholders. Where nominees are used, the disclosure of the beneficial shareholders or real directors is not a matter of public record, and the names do not need to be disclosed.
- Cyprus has double tax treaty agreements with more than 47 countries.
Reputation (whitelisted / blacklisted)
The reputation of the specific tax jurisdiction is mandatory. There are various “white-lists” and “black-lists”, depending on your particular viewpoint and it’s a good idea to consider the clarity of the structure.
- Cyprus is “white listed” in all the countries it has double tax treaty with.