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The following are some of the most frequently asked questions about Cyprus Company formation: |
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Cyprus has a stable government, economy and legal system and joined the European Union in 2004. Cyprus-resident Companies also pay a corporate tax rate of just 10%. In addition, a Cypriot Company can be 100% foreign-owned. |
Non-resident Cyprus Companies are tax-free (although it may be liable to pay tax in the country in which it makes strategic decisions). Dividends, interest and royalty payments have no withholding tax, while there is no capital gains tax. Cyprus has also signed double taxation treaties with more than 40 countries. In addition, losses incurred by a Cypriot-resident Company can be set against profits in the future years. |
A Company is deemed Cyprus-resident if i) strategic decisions about the Company are made in Cyprus and ii) if the majority of the board of directors members are resident in Cyprus for more than 183 days a year. |
Yes. Formerly known as a Cyprus Offshore Company, the Cypriot offshore structure is now known as an International Business Company (IBC). |
A Cyprus IBC cannot undertake any business in Cyprus. |
No. Worldwide income
is taxable for Cyprus-resident individuals and corporations. |
A Cypriot Company must submit a set of accounts to the Cyprus Central Bank as well as Registrar of Companies and tax authorities within 18 months of incorporating in Cyprus. Annual submission of accounts is required thereafter. |
No. Cyprus enjoys a relatively good reputation and international image. |
Yes. However, note that Cyprus has agreed to share information about savings held in Cyprus banks by EU nationals with the account-holders' countries. |
A Cypriot Company is an ideal holding and investment Company. |
Groups investing outside Cyprus may throughflow income streams which are exempt from tax in Cyprus and do not pay withholding tax upon leaving Cyprus. However, a Cyprus holding Company must produce financial statements of consolidated accounts. |
Securities transactions are not taxed in Cyprus, even if this is the Company's core activity. |
A
Cyprus Company must have a minimum of one shareholder and maximum of 50. When incorporating in Cyprus via an IBC, the shareholder can be an individual or corporation of any nationality. A Cyprus Company must have at least one director. |
No specific incentives, although 100% foreign ownership is allowed, and non-EU investors can invest in Cyprus without capital restriction. |
Non-EU investors cannot invest in Cypriot property. |
Contact Us For more information on any of our Cyprus corporate services, email email@healyconsultants.com or telephone us at (+65) 6735 0120. Back to Cyprus Company Formation page |
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