About Cyprus
Cyprus, an EU member state located in the Mediterranean is considered one of the most attractive jurisdictions in Europe to form a limited liability company due to its advantageous tax system. The Corporate tax rate is 12,5%, one of the lowest in the European Union. Cyprus is fully compliant with all EU Directives as well as the Organization for Economic Co-operation and Development (OECD) requirements against harmful tax practices, hence you can rest assured that you can significantly lower your tax burden without any risk.
Benefits of Incorporating in Cyprus
Tax rate is one of the lowest in Europe
At just 12.5%, the corporate income tax rate in Cyprus is one of the lowest in the EU, as well as having a number of double tax treaties in place.
Respectful Jurisdiction
Unlike offshore jurisdictions, Cyprus is a credible member of the European Union that is business-friendly with easily accessible banking solutions.
Remote Incorporation
It is possible to incorporate a Cyprus company remotely without the need to physically visit Cyprus to complete the process.
0% Tax on dividend payments
Dividend payments are exempt from any tax in Cyprus when paid out to foreign shareholders who are not residents of Cyprus.
... as well as
- 0% Tax on dividends received from foreign subsidiary company(ies)
- 0% Tax on dividends received by another Cyprus company (terms apply)
- 0% Tax on gains from the disposal of securities i.e. shares and bonds
- Wide Network of Double Taxation Treaties – Over 60
- Intellectual Property “IP” Box regime tax benefits (tax exceptions on qualifying IP assets developed in Cyprus)
- Further tax benefits apply on a personal level if you relocate to Cyprus and become a tax resident (non-Domicile) either under the 60-day rule or the 183-day rule (subject to satisfying certain criteria)
Interested in setting up a Cyprus Company?
Contact us today by filling in the form below for a complimentary consultation
Cyprus Company Formation with iGB360
Walkthrough of the Process
1Name Approval
A name needs to be sent to the Cyprus Companies registrar for approval, which could take up to 6 days to be approved.
2Know Your Client (KYC)
Prior to registration, applicants are required to provide the registrar of Cyprus Companies completed forms with information and documentation, such as a copy of the shareholders’ passports and a residential address, amongst other information.
3Memorandum & Articles of Association (M&AA)
Adoption of the Memorandum & Articles of Association (M&AA), preparation and certification of the company’s documents.
4M&AA Drafting
Prepare and draft all relevant documents, including the Articles of Association, specifying the purpose of the company incorporation as well as terms regarding share capital.
5Banking Assistance
Opening a corporate bank account can take up to four weeks, and in most cases the company shareholders and directors are not required to be present.
What are the legal requirements and considerations for incorporating a Cyprus company?
SPOTLIGHT
What are Cyprus companies popular for?
Cyprus is considered an excellent location for international operations due to its business-friendly nature towards foreign investors, efficient tax system and ideal geographic position between Europe and the Middle East.
Cyprus offers one of the lowest tax rates in Europe at just 12.5% corporate tax on profit, as well as other tax exemptions.
Cyprus offers more than 60 double tax treaties as well as non-withholding tax on dividends paid out to foreign shareholders.
Shareholders of a Cyprus Company can choose to remain anonymous if they wish, as Cyprus offers foreign shareholder asset protection through nominee services, allowing shareholder anonymity under Cyprus Law.
It is relatively simple and straightforward to incorporate a Cyprus Company, and in some cases, can be incorporated within 10 working days, and without the need for the owner to be physically in Cyprus.
Cyprus offers a highly efficient IP tax regime of 80% exemption on income tax when intellectual property is owned by a Cyprus Company.
