Cyprus – A key International (offshore) business center
Cyprus enjoys a strategic location in the northeastern part of the Mediterranean, standing in the crossroads of Europe, Asia and Africa, something that turned the island into a major shipping, financial and International (offshore) business center . Cyprus is also a full member of the European Union and has adopted a favorable international tax planning regime for non-residents, which partly explains why it’s so popular among foreign investors and entrepreneurs.
When choosing a foreign jurisdiction for a company set up, there are various factors that need to be taken under consideration, such as the reputation, political and economic stability of the country, the trustworthiness of its accounting and governmental mechanisms, the company formation bureaucratic requirements, its tax regime and, of course, its telecommunication and IT infrastructure. Cyprus surely enjoys all that and this is why thousands of international companies are using this key International (offshore) business center –as opposed to other jurisdictions- as a vehicle to maximize their profit and expand their corporate activities.
Advantageous international (International (offshore)) company formation
Cyprus resides among the top destinations for international company set ups and is one of Europe’s most advantageous tax planning locations. Apart from being part of the Double Tax Treaties network, along with 41 more countries, Cyprus also boasts –among others- the following benefits:
- Full tax exemption on profits of international businesses that are managed and controlled outside the country
- Foreign investor’s full anonymity through nominee services
- Tax free dividends
- Full tax exemption on capital gains
- Full income tax exemption for foreign employees of international business companies living and working outside Cyprus, if they are paid through a bank operating in Cyprus
- Duty free shopping for International (offshore) companies situated in Cyprus
- Registration of ships under the Cypriot flag
- Creation of International (offshore) banking units and establishment of trusts
- No time restriction on carrying forward tax losses
- Full tax exemption for profits from disposal of securities