Advantages of Cyprus Company Formation
- European jurisdiction
- Advantageous vehicle for International Tax Planning and use
- Double Tax Treaties (Cyprus has signed a considerable number of Double Taxation Treaties with various countries, to avoid the double taxation of income earned in any of the two contracting states)
A Cyprus company requires a minimum of one director. Director can be of any nationality and need not be resident, but Cypriot advisable for purposes of tax residency Corporate directors are permitted.
A Cyprus company requires a minimum of one shareholder.
Each Cyprus company must have a Secretary in Cyprus.
Tax exemptions and concessions
- 0% tax on Dividends received (Dividends received by a Cyprus Company, on certain conditions, are free of tax making Cyprus the most competitive jurisdiction for holding companies)
- 0% withholding tax on Dividend payments (Dividends payable by a Cyprus resident company to its foreign shareholders (whether a company or individual) are not subject to any withholding tax in Cyprus)
- Full tax exception on the payment of dividends to its non-resident shareholders and has a real advantage over the other traditional holding jurisdictions
- No capital gains tax is paid on the transfer of immovable property owned by a Cyprus Company abroad (outside Cyprus)
- 12, 5% Taxation for tax resident companies. (Starting from accounting period of 2014)
- 0% Taxation for NON-tax resident companies
Restrictions on Trading
Banking, insurance, assurance, reinsurance, fund management, collective investment schemes, trust management, trusteeship business provision are not permitted.
Registered Office Required
Each Cyprus company must have a Registered Office in Cyprus.