Cyprus Company Formation

A Cyprus company gives international businesses significant benefits in terms of optimising their tax structure. Below are several key Cyprus tax advantages you can gain from the formation of a Cyprus company.

Advantages of a Cyprus Company:

1. Incorporating a Cyprus company gives business owners the opportunity to lawfully operate their businesses through Cyprus, while being able to continue with their business activities internationally. With a correctly structured Cyprus company, entrepreneurs and individuals can benefit from Cyprus’ corporate tax rate of 12.5%, which ranks as one of the lowest tax rates in Europe.

2. The incorporation of a Cyprus company can be structured with 100% foreign shareholders. Cyprus Company Law requires that a Cyprus company possesses minimum, one company shareholder and one company director. Both corporate shareholders and directors can be of any nationality and with effective planning, a Cyprus company should be structure in such a way to ensure that the company’s management and control is exercised in Cyprus. The management and control principle of a Cyprus company is the only test for tax purposes.

3. Dividends paid to a Cyprus company are exempt from corporation tax notwithstanding that such dividends emanate from a foreign (under certain circumstances) or another Cyprus company. What’s more there is also no withholding tax imposed on dividends paid to a non-resident individual or corporate shareholder.

4. Incorporating a Cyprus company also gives entrepreneurs the ability to benefit from over 60 double tax treaties. Greece, Russia, Poland, France, India, China, Singapore, Ireland, South Africa, the United Kingdom, the United States and Luxembourg, are just a few jurisdictions which are party to the Cyprus Double Tax Treaty.

DP Law Cyprus can assist with setting up tax efficient structures and provide the subsequent management, administration and corporate secretarial legal services for the Cyprus companies used in such structures. We can provide nominee shareholders, directors, secretary, registered office, as well as substance facilities and accounting services.