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Cyprus Offshore
Why do business through a Cyprus Offshore
Cyprus, through its remarkably beneficial tax system is proving itself to be one of the most popular jurisdictions from where to perform international business.
It is no wonder that the World Bank has described Cyprus as the "region's miracle".
Cyprus company advantages
There are significant reasons why a Cyprus offshore company is proven to be one of the most popular company vehicles to conduct business with.
- Significant tax savings
- Lowest corporate tax rate in EU at only 10% on net profits
- Non–disclosure and anonymity
- Excellent network of double taxation treaties
- Protection of private wealth
- No exchange control restriction
- Reduced operating expenses
- Significant degree of privacy and confidentiality
See also Why Cyprus is an ideal place to locate holding, trading and intermediary companies.
Cyprus company activities
There are a number of company activities, tax wise, that are most effectively operated through a Cyprus offshore company. The most common examples are outlined here; however the possibilities can be endless:
- International Trading
- International Property
- Investment Holding Companies
- E-Business
- Insurance and Re-Insurance
- Provision of Services
- Financing
- Property Ownership
- Leasing
- Employment
- Shipping and Ship Management Companies
The term "Cyprus Offshore"
The term Cyprus offshore company may be misleading today.
There used to be a clear distinction between a Cyprus offshore company and a Cyprus onshore company. Since joining the EU however, the island is no longer regarded as an offshore jurisdiction, and to reflect this, the commonly used term 'Cyprus offshore' was adjusted to 'International Business Company' or IBC. An IBC shares the same advantages of a Cyprus offshore company.
A Cyprus offshore company enjoys the EU's lowest corporate tax rate, a flat rate of only 10% on net profits. To fully appreciate the remarkable advantage of doing business through a Cyprus offshore company, one should compare the corporate tax rate of other EU country members such as the UK, Germany, Greece, France, Sweden, and so on. Comparisons with other offshore jurisdictions such as BVI, Marshall Islands, Panama or Seychelles should be avoided for the simple reason that these carry other objectives and cannot be used for the same purposes that a Cyprus company is used for.
Furthermore, beneficial owners of a Cyprus offshore company receive their dividends tax free and are not liable to any extra taxation on their income other than the 10% flat tax rate of the Cyprus offshore company.
Other offshore company formations
Useful information
See Cyprus offshore company registration requirements »
Things you might want to ask before registering a Cyprus offshore company »
Prices for Cyprus offshore company registration »
Prices for offshore company formation (BVI, Belize, Seychelles etc) »