Cyprus

Republic of Cyprus is a state situated on a Cyprus island in the Mediterranean sea, south of Turkey. Greek and Turkish  are the official languages but English is also widespread. Cyprus is mainly used as a seat of holding companies, especially due to the need to minimize tax liability of companies operating within the European Union.

Basic information about business in Cyprus

Cyprus is not a classic offshore country because VAT represents 10 % (the lowest in EU) and companies have to submit tax return. One of the biggest advantages of business in Cyprus is the number of agreements prohibiting double taxation which garant an offshore company in Cyprus low or even zero tax from dividends, interests and license fees. Republic of Cyprus is
used as an offshore destination especially due to these reasons:

• income tax for companies is 10%
• free movement of goods and services within the European Union
• wide network of treaties prohibiting double taxation

We commonly register IBC companies in Cyprus.

IBC (International Business Company) companies

IBC is a common Cypriot company owned by nonresidents. Income tax is 10 %. Companies have to be owned by foreign entities (directly or indirectly) and have no revenue from operations in the territory of Cyprus. Companies have to annually pass final accounts verified by a local auditor to the companies register and the tax authorities.

• Price for the establishment of Cyprus IBC company (Ltd) is € 2400
• renewal fee (renewal fee) over the next few years € 1150 , iincluding all fees to the state and charges for the seat of your company (other costs are not included, e.g. accounting, auditing and preparation of tax return)