A close neighbor to the UK, Cyprus is one of Europe's key tax havens and has become a popular location for those looking to avoid capital gains tax through offshore company structures, especially for holdings or investment companies. Although the nation does not have as many tax treaties as Ireland, Cyprus is a close second. The nation has DTAs with over 60 countries including most major Western, Central, and Eastern European States. Cyprus companies are an especially popular option for these countries, where increased investment interest has spurred businesses to take advantage of low withholding taxes abroad. Although Cyprus has the most benefits for companies willing to set down roots and engage in business within the nation's borders, its unique sparing provisions can also be a huge benefit.
Creating an offshore company and ensuring compliance can be confusing and hectic. At Mass Accounting, we work with a team of local agents in Cyprus as well as a number of banks such as FBME. This allows us to keep up to date with legal requirements and documentation for creating and maintaining legal and compliant offshore trusts and companies so you don't have to.
Whether you're looking to register your business, create an offshore trust, or need help with long-term compliance assistance, we can help! Our goal is to create comprehensive, all-in-one services for offshore company formation that makes the process as simple and easy as possible. To do so, we offer:
The standart pack includes all incorporation documentation and government fees
Registered Office Address
Registered Agent Services
Company Secretarial Maintenance
All Government fees due on incorporation
2250 EURO
In addition to all incorporation documentation and government fees, this pack contains the appointment of a Professional Director and Shareholder and a local offshore bank account
Registered Office Address
Registered Agent Services
Company Secretarial Maintenance
All Government fees due on incorporation
Professional Director Service
Professional Shareholder
Offshore Bank Account
3750 EURO
Includes the same as our Privacy pack including the services of Professional Directors, Shareholders and a bank account with a prestigious offshore bank account with the provision of Bank Signatories
Registered Office Address
Registered Agent Services
Company Secretarial Maintenance
All Government fees due on incorporation
Professional Director Service
Professional Shareholder
Provision of Bank Signatories
Prestigious Offshore Bank Account
6150 EURO
Although Cyprus tax rates are not the lowest, there are a number of benefits to having an offshore company in the nation, especially for those willing to set up operations there. Income tax rates range from 20-30%, although this does not apply to the profits or income of permanent establishments carrying on trade or employment services provided abroad to a non-residential employer. However, interest received by individuals or 50% of interest income received by the company, dividends, and profits from the sale of shares are all exempt from income tax. There is also a special 5% rate for pensioners and a €19,500 exemption per individual.
For example, a Cyprus company would only face a 5% withholding tax on dividends and royalties and be exempt from income tax on dividend income in comparison to the standard 15% of Russia. The Cyprus company may also be able to claim exemption from the15% defense fund contribution that is required for all resident shareholders. As for corporate tax, Cyprus has one of the lowest rates in Europe at just 10%, which applies to all companies that have an office in Cyprus or carry business there.
As part of the OECD's ‘white list,' Cyprus also has a number of agreements that allow for information exchanges between countries for tax purposes. In the last few years, Cyprus has also increased the number of DTAs it has with other countries, which now include new agreements with Saudi Arabia, the UK, and Barbados as well as: Austria, Belgium, Bulgaria, Canada, China, Czech Republic, Denmark, Finland, France, Germany, India, Iran, Ireland, Lebanon, Malta, Norway, Poland, Portugal, Russia, Singapore, South Africa, Spain, Sweden, Thailand, United Arab Emirates, US.
These agreements can have benefits such as reducing or eliminating certain taxes such as those on dividends, royalties, and capital gains in certain circumstances.
Perhaps the greatest benefit of companies in developed companies looking to create an offshore account is the opportunity for free tax credits. A number of Cyprus treaties include tax sparing provisions that allow companies to accrue tax credits in the country of the treaty without necessarily having had to pay taxes. For example, a company in a developed country such as the UK or Canada may be required to pay taxes but, because the offshore company is in Cyprus, end up paying a lower rate or not paying any taxes at all. Nevertheless, the developed country treats the taxes as if they have been paid and allocates tax credits for spending in Cyprus to help the nation's developing economy.