Advantages to incorporate in Cyprus
For those seeking a sound solution to engage into international developments, allow us to outline the top 25 advantages of setting up your business company in Cyprus.
In recent years, the global international business landscape has witnessed transformative changes, shaping a new model. Numerous significant developments, including FATCA, CRS, BEPS, de-offshorisation, and amendments related to substance in the Parent-subsidiary Directive, have come to the forefront. Additionally, the introduction of the fourth EU AML Directive, with its emphasis on Beneficial Owner registries, has left an indelible mark. Concepts such as substance, transparency, and compliance now play a pivotal role in the evolving realm of international investments and business operations.
Cyprus, in response to these changes, has chosen to not only adapt but also to lead the way in the modern international business arena. Leveraging its existing strengths, such as flexible legal and tax frameworks, a competitive Corporate Tax rate, strategic geographical location, top-tier citizenship and residency programs, and a high standard of living, Cyprus has made strides in achieving this goal. Recently, it has introduced significant measures, including a special regime with tax exemptions for real estate investments, tax-deductible equity charges, and more.
In essence, Cyprus offers numerous compelling reasons for foreign investors and entrepreneurs to consider not only investing in the country or incorporating it into their international business structures but also relocating their business activities to Cyprus. By doing so, they not only align with the emerging trends but also fulfill important objectives, such as favorable returns on investments, ease and cost-efficiency in conducting business, and the opportunity to enjoy a preferred lifestyle.
25 Relevant Advantages of Setting up your Business Company in Cyprus
Discover the numerous benefits and advantages a Cyprus company has to offer, extending beyond tax incentives:
1. Cyprus company incorporation can be completed in as little as 5 working days.
2. The cost of incorporation is exceptionally affordable, with Business and Premium company packages available at competitive rates in our Limassol offices.
3. Obtain essential certificates, such as Certificate of Incorporation or Good Standing Certificate, on the same day in English with Apostille certification.
4. Cyprus allows the use of Nominee Directors and Shareholders to ensure full confidentiality and anonymity.
5. Companies do not need to fully pay their share capital in cash upon incorporation; it can be paid at a later stage.
6. As an EU company, Cyprus entities are widely recognized and accepted in all EU countries and beyond.
7. The annual corporate and maintenance costs are low, featuring a comprehensive management package that covers administrative, legal, and accounting services.
8. Open a bank account for your Cyprus company in any country of your choosing.
9. Secure an EU VAT registration number in just 48 hours.
10. Appoint Nominees with full Power of Attorney to manage the company’s operations as needed.
11. Cyprus companies can be incorporated without the need for a physical visit, even if you intend to act as a Director yourself.
12. Establish a virtual office in Cyprus to serve as the company’s headquarters, offering a dedicated telephone line, fax, email account, and office space for client meetings.
13. The process to dissolve a Cyprus company is straightforward.
14. Operate your Cyprus company remotely from the convenience of your office in your home country.
15. Cyprus companies are subject to a low corporate tax rate of 12.5% on net profits generated within Cyprus, with 0% corporate tax on profits earned elsewhere. Cyprus is a low-tax jurisdiction rather than a tax haven.
16. Dividends paid out to shareholders by Cyprus companies are not subject to taxation, offering a 0% tax rate.
17. Cyprus companies also enjoy a 0% tax rate on dividends received from any of their subsidiaries.
18. Profits and gains derived from the disposal of securities, regardless of whether they are considered of revenue or capital nature, are exempt from income or capital gains tax. (Terms apply)
19. Cyprus companies are not subject to income or capital gains tax on profits and gains derived from foreign exchange (FX) operations, excluding gains from trading in foreign currencies and related derivatives.
20. Companies that operate permanent establishments abroad, such as hotels, restaurant chains, and shops, enjoy a 0% tax rate on all profits.
21. Cyprus companies incur only a 2.5% tax rate on profits derived from the possession or trade of Intellectual Property rights, including patents, trade names, trademarks, and various rights in music, sports, and science, among others.
22. Incorporating a Cyprus company provides the Real Owner and their family members with the opportunity to secure a two-year (renewable) long-stay visa and work permit. In seven years, they can obtain a Cyprus-EU passport.
23. Cyprus companies can be re-domiciled to any other country.
24. Cyprus has established Double Taxation Avoidance Treaties with numerous countries worldwide.
25. Settling in Cyprus offers a beautiful destination with a mild climate, low crime rates, a welcoming population, an abundant workforce, delectable cuisine, and fresh fruits and vegetables.
(*) Securities, as defined by law, encompass shares, bonds, debentures, founder’s shares, and other securities of companies or legal entities, as well as options over such securities.
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