For non-resident company owners in Cyprus, Cyprus is a tax-haven (i.e. no corporate taxes). The following is a list of incentives for incorporating in Cyprus:
Cyprus also holds strict confidentiality policies. We strongly advise all clients to assign a nominee director when incorporating in Cyprus. Cyprus authorities have no direct access to bank information and court orders are required in order to get said access as bank employees are bound by secrecy by section 3 of the Central Bank Law 37 of 1975.
A company incorporated in a foreign country is considered to be a tax resident of Cyprus if it is managed and controlled in Cyprus. A foreign company to be managed and controlled in Cyprus is expected to have the majority of directors to reside in Cyprus and to hold Board Meetings in Cyprus . A UK register company managed and controlled from Cyprus and with activities outside UK will not be taxed in the UK but it will be considered a tax resident of Cyprus. The UK Company will be registered in Cyprus with the Registrar of Companies as a foreign company and with the tax authorities as a tax resident of Cyprus. As a company managed and controlled in Cyprus said company is subject to 10% corporate tax.
A Cyprus IBC can be used as an investment company financing various projects internationally belonging to the same group. The advantages of a Cyprus Investment IBC are the following:
A Cyprus IBC can be used as an investment company financing various projects internationally belonging to the same group. The advantages of a Cyprus Investment IBC are the following:
No withholding tax on dividends distributed to non-resident shareholders of Cyprus Companies.
No withholding tax on interest paid by a Cyprus Company to non-resident creditors.
Cyprus has concluded tax treaties with more than 40 countries worldwide. Interest Income paid to Cyprus benefits from the low withholding taxes from countries with which Cyprus signed Tax Treaties.
For example interest is paid to Cyprus from Russia, Ukraine, Austria, Ireland, Norway, and South Africa with zero withholding taxes.
A company incorporated in Cyprus is considered to be a tax resident of Cyprus if it is managed and controlled in Cyprus . A company to be managed and controlled in Cyprus is expected to have the majority of directors to reside in Cyprus and to hold Board Meetings in Cyprus.
Resident companies are subject to corporation tax at the rate of 10% which is the lowest corporate tax rate in the entire European Union.
No withholding tax on dividends distributed to non-resident shareholders of Cyprus Companies.
No withholding tax on interest paid by a Cyprus Company to non-resident creditors.
Cyprus has concluded tax treaties with more than 40 countries worldwide. Apart from that, a Cyprus company, being an EU-based entity, is entitled to the benefits of the EU Parent-Subsidiary directive and the EU Interest and Royalty directive, under circumstances providing for withholding tax exemption for interest, dividends and royalty payments made by companies in other EU-member states to a Cyprus company.