Surely you have often heard that business in Cyprus is extremely profitable. The advantages include ease of administration, low taxes, lack of pressure from government, etc.
But is it really? What myths exist about Cyprus business life, what are the actual taxes in Cyprus, which business is considered profitable there? We will answer these and other relevant questions in this article.
Who benefits from starting a business in Cyprus?
The proposals of the Cypriot government can open up opportunities for wealthy people:
wishing to keep assets in an economically stable country;
aspiring to do business in a corruption-free space;
planning to launch their company in the European and world markets;
caring for personal safety;
needing alternative accommodation;
wishing to travel without a visa in 150 countries, including the United States.
Incentive taxation and the ability to optimize tax payments.
Free transfer of currency between accounts in Cyprus and abroad, there are no restrictions on currency exchange.
Additional tax benefits: 0% income tax rate for companies specializing in the sale of securities, etc.
In some cases, losses can be carried forward and offset against future profits.
Taxes are not subject to mergers, reorganization procedures, transfer and exchange of shares, assets.
What does a business registration in Cyprus give?
Registering a company in Cyprus provides an opportunity not only to bring business assets to the European zone, but also to receive a passport of a country belonging to the European Union. Cyprus recognizes a second citizenship, and the government of this state is not obliged to inform other countries about the issuance of their passport.
What are the conditions for obtaining Cypriot citizenship?
To do this, you will need direct investment in the economy of Cyprus in the amount of not less than 5 million euros.
A combined option is also provided: investment plus cash donation to the state fund.
It is possible and collective investment. The number of investors must be at least 13, and each of them must invest at least 2.5 million euros.
We should also dwell on the collective version. You want to take part in the Cyprus investment program and get a second citizenship, but you do not have the necessary number of partners? It is better to turn to a specialized company that selects groups of investors and can vouch for the business reputation of each of them.
It is worth knowing
It is necessary to apply annually for the renewal of the company. The process includes the payment of services of nominal directors and shareholders, secretaries, fees for filing an annual report.
The partnership is obliged to keep accounting logs, which are presented for verification upon the request of the participants. If the annual turnover exceeds 70 thousand euros for each partner, the reporting is audited.
The Law “On Companies” requires that the financial statements of all limited companies be audited by an authorized independent auditor.
If you want to open a branch in Cyprus, you should know that banks and customers often prefer Cypriot companies, ignoring the foreign branch.
With certain categories of income (dividends, interest, rent payments), a defense tax is paid. Cyprus in 2015 decided to cancel it. Now it is 17% (dividends) and 30% (interest).