Cyprus Solution

Cyprus is an island within the EU in the Mediterranean close to Greece. An island of legends that basks year-round in the light of the warm Mediterranean sun. A storied past 10,000 years long has seen civilizations come and go and the likes of everyone from Alexander the Great to Cleopatra stake their claim here - but then, people do tend to get possessive when faced with such beauty. Aphrodite made her home on Cyprus, and travelers throughout antiquity came here just to pay her tribute.

Today Cyprus is a modern country that effortlessly marries European culture with ancient enchantment. Here you will discover a compact world of alluring beaches and fragrant mountain peaks, vineyards studded with olive trees and ancient ruins that stir the imagination, citrus groves and old stone villages where sweet wine flows as freely as conversations at the local cafe. A carefree place where a sense of timelessness is magnified by the kindness of the people. Cyprus is an island that is as exotic as you imagine - and more accessible than you might think

If you wish to invest in property or invest in shares anywhere in the world, Cyprus is the ideal solution for you based on the tax treaties that Cyprus has with many other countries in the world.

Under new legislation worldwide income taxation of foreign-controlled Cyprus offshore companies will no longer depend on where they are registered but on where they are managed and controlled.

Companies registered in Cyprus but managed and controlled from abroad, will only be taxed in Cyprus on their income generated in Cyprus. Offshore company in Cyprus will enjoy exemption from tax on foreign dividends and interest and income from any permanent establishment abroad, as well as all foreign tax credits and offsets of losses incurred abroad. They will not be entitled to benefits under the double taxation treaties, but will not be subject to the exchange of information rules under such treaties. So offshore company in Cyprus can be referred to as an international business company nowadays.

Cyprus New Tax Legislation - important for Cyprus company formation

The new legislation related to company registration in Cyprus came into force on 1st January 2003. Under the new law Cyprus tax is imposed:

  • On the worldwide income of all residents of Cyprus, and
  • No requirement for audited accounts therefore no need for an auditor; On the income generated in Cyprus by any non-residents of Cyprus.
  • A company is considered resident if it has its management and control in Cyprus. Therefore any company that carries out operations outside Cyprus and belongs to non- residents of Cyprus and has its majority of the board of directors outside Cyprus is not liable to taxation in Cyprus. This means that non-resident - offshore companies in Cyprus cannot take the benefit of any double tax treaties involving Cyprus but at the same time will not be subject to the exchange of information rules under such treaties.
  • On the other hand, if a Cyprus company wishes to take advantage of the double tax treaty network of Cyprus it is highly advisable to have the majority of the directors in Cyprus and to provide that all board meetings of the company shall take place in Cyprus (we can employ our Cyprus nominees for this purpose).

Summary
Worldwide income taxation of foreign-controlled or offshore companies will no longer depend on where they are registered but on where they are managed and controlled. Companies registered in Cyprus but managed and controlled from abroad, will only be taxed in Cyprus on their Cyprus-source income. They will enjoy exemption from tax of foreign dividends and interest and income from any permanent establishment abroad, as well as all foreign tax credits and offsets of losses incurred abroad. They will not be entitled to benefits under the double taxation treaties, but will not be subject to the exchange of information rules under such treaties.

Inside and Outside EU
From Cyprus we can easily conduct business on your behalf both inside and outside the EU.

Banks Security
To secure your money is the KEY to success in your wealth planning and international business set up. Through our private and local banks we offer secure deposit accounts that are ensured by international laws.

Highly Recognized
With us you will have a virtual office in Cyprus, depending on what jurisdiction we choose, that will give you the best tax benefits. With your Cyprus address you will always look professional inside and outside EU.

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