Cyprus does not lose its popularity as a country for registering various types of companies – trading, IT, holdings and many others. What makes it possible, for whom it is interesting and what are the advantages of registering a company in Cyprus – you will find relevant answers to all these questions later in this article!
What are the benefits of registering companies in Cyprus?
Setting up a company in Cyprus has three main and indisputable advantages: low taxes, the possibility of opening a bank account (especially important in the context of deoffshorization and for CIS citizens), as well as ease of use.
Cyprus has one of Europe’s lowest income taxes—12.5% on net income—and no repatriation tax on dividends to beneficial owners. But the tax advantages of Cyprus do not end there – Cyprus has a number of different tax incentives, such as preferential taxation of income from intellectual property (IP-Box), a notional interest deduction on new capital (NID) and others. IT companies and is great for registering Holdings.
Other advantages of registering a company in Cyprus include:
- Many tax incentives for investment and holding companies.
- Cyprus does not tax companies, shares, or asset sales.
- Double tax treaties have been signed with 55 countries.
- Local account opening (company and account in the same jurisdiction).
- Quick registration of the company – within 10–15 days after the application is submitted.
- Cyprus benefits from all EU trade accords, including capital mobility, as a member of the EU.
- Relatively inexpensive content.
- Possibility of qualitative settlement of corporate relations between the owners of companies.
Why register a company in Cyprus?
Firstly, registering a company in Cyprus will be of interest to those who plan to work on the European market and cooperate with any European counterparties – through a company in Cyprus, you can transport goods duty-free throughout the EU.
Also, registering a company in Cyprus will be of interest to businessmen planning to receive income from any foreign branches and subsidiaries – i.e. to register a holding. Zero-taxed income explains this.
No less relevant will be the registration of a company in Cyprus for high-tech and IT companies. Such companies can receive preferential taxation of income from intellectual property – the general income tax rate can be reduced to 2.5%.
Ease of use of companies in Cyprus
Companies have always been important tools for doing business, so the convenience and ease of use of companies is an important component in choosing a country for doing business.
The development of outsourcing in the field of auditing, accounting, financial and other services, the good development of telecommunications, the availability of qualified personnel, and the knowledge and “perfection” of legislation on all issues – this is an incomplete list of the advantages of Cyprus in terms of business services. This allows not to keep additional employees on the staff, but, if necessary, to hire third-party specialists, which will provide an opportunity to significantly reduce the time and resources for maintaining companies.
Modern specialists know English, one of Cyprus’ official languages. Thus, registering a company in Cyprus will avoid the language barrier, as well as the cost of translations when applying for banking and other business transactions, since English is the business language of Cyprus and all documentation is also conducted in it.
Summing up, we see that registering a company in Cyprus has many advantages. Based on many years of experience with this country, Fintech Harbor Consulting is happy to help you register a business in this jurisdiction!
