Many company owners are not happy about the tax level in their home countries and they are more than ever looking for alternative structures in order to minimize the tax burden. Inwema has therefore recently established a subsidiary company in Limassol (Cyprus) and can now assist the clients setting up tax efficient companies in Cyprus.
Lately Cyprus has won interest by many people because it has become the lowest corporate tax country in the EU. The many advantages can be obtained by trading companies as well as by holding companies. The low corporate tax has led to more than 30.000 incorporations of companies over a short period.
Cyprus is an EU country
From May 1, 2004, Cyprus has become official member of the EU and has from 2008 decided to change currency into EUR. Because the island has once been controlled by England, traffic regulations and judicial system etc. are similar. In the southern part of Cyprus (Republic of Cyprus), the language is Greek, the business language though is in many places English.
No boundaries on capital
A recent decision from the EU law court has ruled that there must be no bounda-ries on capital inside the EU. Any capital can now inside the EU be transferred without problems to another country. This court decision has opened up great pos-sibilities and a new universe of tax-free saving inside the EU especially in Cyprus.
The greatest advantages with Cypriot companies are obtained with a holding structure, if it is done correctly. If you possess a respectable wealth or a large capital gain, Inwema can advise you to a
structure where taxation will be consi-derably lower than in your home country. Even though there are some obstacles as CFC (controlled foreign companies) tax that has to be respected.
Some corner stones in Cyprus are:
- All the EU advantages on cross border activities
- The lowest corporate tax inside the EU
- Profit from trading shares is exempt from corporate tax
- No Cypriot tax on dividends from shares paid out from a Cypriot company to abroad
One of the important conditions that have to be fulfilled in order to get the tax advantages in Cyprus, is that management of the company must be done from the island. If you do not have a director in Cyprus, Inwema can help you find an English speaking one with a trustworthy CV. Furthermore, Inwema can be of assistance in preparing all the necessary documents, including employment contracts on your behalf, in order to make your company tax compliant with regulations in your home country.
When a company is incorporated in Cyprus, you need a lawyer, an accounttant, and a secretary and of course a director that you can trust. It is only approved advisers that are allowed to set up companies in Cyprus. Inwema Cyprus can help you setting up your company and to find the right people to support you in the future.
Price and contact
If you are interested in knowing more about the advantages with a offshore company from Cyprus, please do not hesitate to call Inwema.