Cyprus can prove an ideal location for investors to form a Holding Company because:
- Of the strategic geographic location Cyprus attracts investors from across the globe.
The international scenery of the island is so diverse that people from Asia, Russia and Ukraine, Middle East, Central Europe, the Balkans and USA to mention some are found together in one place. It offers one of the best opportunities to do business with investors from all over the world.
- The future of the oil and gas industry. Cyprus has the potential to became a center for energy supply in Europe. There is an anticipation of job opportunities, relocation of corporate headquarters and a lot of business opportunities within the energy industry.
- It has highly developed financial services industry
- Highly skilled and educated workforce
- Telecommunications network and infrastructure
- Direct flights to/from main capitals of Europe and Middle East with International Connections.
- Lower rates for services than most other European Destinations
- English is a well spoken business Language
- An amazing climate
Cyprus because of its Tax system is ideal for:
- Holding Companies
- Financing Companies
- Royalty Companies
- Regional Headquarters
- Shipping Companies
- Collective Investment Schemes
- European Company Head Office
Cyprus most beneficial Tax incentives are:
- 12.5% corporate tax on trading profits
- No Controlled foreign corporation (CFC) rules
- No thin cap rules
- Capital gains from the sale of immovable property situated outside Cyprus is tax exempt
- Capital gains on sale of securities: 100% exemption
- Taxable losses carried forward for 5 years
- No withholding tax on outward payments (dividends-interest-royalties)
- Group relief availability
- Tax free re-organizations (under EU merger directive a European company can transfer all its assets and liabilities to a new Cypriot company without any tax implications, the European company is then closed)
- Foreign PE profits exempt
- Tax free corporate re-domiciliation permitted (a European company can domicile in Cyprus from another European country as it is with very low costs)
- Applicability of all EU directives (especially important is parent-subsidiary directive and merger directive)
- Capital duty on issue of share capital 0.6% (no capital duty on share premium)
- Extensive double Tax Treaty network.
These tax incentives are ideal for investors who want to establish:
- A Cyprus investment fund
- A Cyprus holding Company
- Establish a Mutual fund Investment Scheme
- A trading Company
- Cyprus Royalties Company
- Cyprus Financing Company
- Beneficial use of the EU Directives enacted into the legislation of Cyprus
- Parents Subsidiary Directive
- Interest & Royalties Directive
- Merger Directive
- Tax Savings Directive
Multinational groups wish to establish a holding company in Cyprus to:
- To extract value by way of dividends or gains on disposal, FREE from or at reduced rate of withholding and capital gains tax
- Use the domestic law to exempt such dividends and capital gains tax from local tax
- To take dividends OUT of the holding company without raising the tax position
For us to able to advise and provide efficient tax structures for your clients we will need to:
- Have an idea what the existing group structure is.
- The nature of group business activities.
- The source of income (trading, dividends, interest, royalties)
- Are there any existing business entities that need to be relocated in Cyprus and where are they established?
- Remember it is our strong policy to abide to all law and relevant legislation towards money laundering or any other criminal activities. We always do Know Your Client procedure and must always work in spirit of trust and confidentiality.
We like to save tax but we like to do it legally.