Cyprus Offshore Company – Tax Benefits

Updated 15 June 2021

 

How to set up a Cyprus Offshore Company

Setting up a Cyprus Offshore Company is very simple. Get in touch with us and begin the process. Your presence is not required. The documents you need are few. Your passport, a utility bill or proof of address and your CV are enough. Then choose the name of your company. We will send you by email the documents we need signed. You download sign and return to us by courier. In about 6 days your company has been registered. Simple, fast no fuss! Trust the experts.

 

Tax and Other Benefits 

A Cyprus Offshore Company can offer you terrific tax cuts on your tax bills. By setting up an offshore company you have two options. To create a tax resident company and pay 12.5% corporate tax in Cyprus or to create a non tax resident company and pay no taxes at all in Cyprus.  If your company is non tax resident you will have to declare your income in your country of residence.  You will thus pay taxes there, thus losing the benefit of paying low taxes in Cyprus. Cyprus has also an extensive network of Double Tax Avoidance Treaties. 

These are the benefits of a Cyprus tax resident company for 2021

  1. 12.5% corporate tax on its net profits.
  2. 0% tax on any revenues from trading in securities such as shares etc.
  3. 0% tax for all profits from the sale of real estate abroad.
  4. 0% tax on dividends paid out to the shareholders, as frequently as you like.
  5. 0% tax on any dividends paid to it by any other company in which it holds shares.
  6. 0% stamp duty in many occasions.
  7. 0% tax on profits of permanent establishments abroad, such as hotels, casinos, restaurants, factories etc.
  8. 0% tax on any income from selling its own shares.
  9. 2.5% tax on IP rights, revenue or rights.
  10. Cyprus has a network of more than 65 Double Taxation Avoidance Treaties
  11. You can get any documents you need for your Cyprus company very fast, in English and Apostil
  12. A Cyprus Company is an EU company. It is acceptable in every country of the world without any problem.
  13. With a proper tax optimization scheme we can reduce your corporate taxes even lower than the 12.5%!

When your company is a non tax resident you don`t pay any taxes in Cyprus. You do however have to declare your profits as income in your country of residence!  A company is tax resident in Cyprus when the management and control of the company is in Cyprus. For that to happen you need to have a Director who is permanently living in Cyprus, the so called Nominee Director! Email us or call for more details on the Nominee Director.

 

What Exactly is A Cyprus Offshore Company?

 

Cyprus Offshore Company:  A Cyprus offshore company is a common private limited liability company. There is no legal difference at all between the two. It is called offshore because it usually operates `offshore` Cyprus. It does not trade within the country because it would pay normal taxes if it did.

So an offshore company, an IBC, a holding company, a trading company and an investment company are all exactly the same legal entities. Only their activities differ.   You can have your Offshore Cyprus Company completed in about 5 working days. It offers you low fees and many other incentives such as 0% tax on dividends paid to the Shareholders and 0% tax on dividends paid to it for shares it owns in other companies.

A Cyprus Offshore Company is the goose with the golden eggs! If you realize its tremendous advantages that you can see above, that should be enough to put your instinct on alert. You can access the markets of 27 EU countries and around 300 mil. consumers but also the rest of the world, as it is acceptable everywhere without reservations. For more information for the formalities required and the formation fees, follow this link: Cyprus Company Formation.

 

Formalities For the Formation your Company

 

1. The name of the company must be submitted to the Registrar for approval.

2. The capital of the company. You must decide the currency for your capital and the size of it. There is no maximum limit and the minimum is one euro. It can be divided in as many special categories as you`d care to invent.  The capital does not have to be paid in the account of the company in cash.

3. The directors of the company have to be nominated and declared to the Registrar on the formation of the company. They can be a person or a company.

4. The shareholders are the owners of the shares of the offshore company and therefore the owners of the company. They can be persons or companies or other legal entities.

5. The Secretary of the company is the official who keeps the records and sign various documents for the Registrar , at the bank, call the meetings of the shareholders etc. He does not have any powers.

6. The company must have a permanent office at which the letters and notifications of the Registrar, the Inland Revenue Department, the Vat Authority and of any private claims can be notified or served. This is called the registered office of the company and it must be declared to the Registrar at the time of the formation of the offshore company.

7. When incorporated the company has a legal obligation to register with the Inland Revenue Department in one month. A TIC number will be issued which must be shown on all the documents of the company.

10. The activities of the company must be declared to the Registrar in the Memorandum. The activities must be legal and must not include activities requiring a license before the company can be incorporated like a lawyer company. Also some activities like banking, insurance, financial investments etc.. must have a license to operate in or out of the country.

Follow this link to see the numerous advantages of a Cyprus Offshore Company if it is used as a holding company: Cyprus Holding Company.

 An Offshore Cyprus Company   is another article which provides you with a lot of information. Follow the link to read it.

 

 

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