So, Cyprus, is it offshore or tax paradise? Of course, before joining the EU, Cyprus was an official offshore. What did it lose after joining the European community? Cyprus no longer has the status of a classic offshore, however, it does not suffer from it. By registering a company in Cyprus with https://www.advancedconsulting.cy/ you get a profitable tax planning tool as the EU company with consistently favorable taxation.
Foreign investors continue to show continued interest in Cyprus. And the reason for the unfading trend is numerous favorable factors including a highly developed and fruitful business climate, combined with a low-income tax rate of 12.5%. The choice is well justified.
Starting your business in Cyprus you should be aware of numerous positive aspects of local legislation and tax laws. Among them are the following:
Taxes are levied on Cyprus tax residents on total income. A company is considered a resident if management and control over activities are carried out in the country. Individuals are considered residents if they spent more than 183 days in a country in a calendar year.
The corporate tax, as indicated above, is 12.5%, while corporate tax is not paid on dividends from other Cypriot companies. Except if more than 50% of the activity of the paying company is associated with passive (investment) income and the paying company is subject to taxation lower than in Cyprus.
Of course, 2013 hit hard on the reputation of both banks and local companies. But Cyprus has learned its mistakes and has been actively working in recent years to cover the damage.
If you decide to set up company in Cyprus, you will receive the following benefits:
Cyprus has introduced new legislation on the protection and use of an intellectual property (IP), which helps to develop the IP sector, both in terms of development and in terms of licensing.
Moreover, talking about a full-fledged business, with employees and permanent residence on the island, Cyprus offers high living standards and relatively low housing prices.