International Tax Planning Made Easy in Cyprus

Shaiya Ong
November 9, 2012

Cyprus belongs to the top three destinations in the world that offers the friendliest offshore tax rates. It shares similar features with the tax transparency in Ireland and Switzerland, but the strategic location of the country makes it a better choice in comparison to the two. Become one of the many businesses who are enjoying the low corporate tax rates of the land and learn how you can make your international tax planning easier.

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Progressive Country in the Mediterranean

Cyprus has its share of turbulent times. Amidst the current strain with Turkey, it managed to earn the trust and confidence of the European Union allowing it to seat on the presidency of the council. Unless members of the EU fail to see the potential in the Cypriot Government, the presidency would not be handed over to it. The Council in itself adheres to very strict rules and regulations in terms of allowing the protection of offshore financial sector, but Cyprus maintained its position in offering privacy and confidentiality to beneficial owners of IBC companies registered in its midst without violating any of the Council’s rules and regulations. Therefore, IBC companies can enjoy the numerous trading benefits offered by EU to its members as long as it fulfills registration in the country.

Impressive Tax Rates

Among all the members of EU, only Cyprus offers a corporate tax rate of 10%, which is also one of the lowest in the region. Shipping companies who prefers to register their company in the region benefits lower tax rates including exemption from wealth tax, dividend income, and capital gains, as long as the transaction falls under the provision allowed by law. You will most likely need the assistance and advice of a financial and legal firm Cyprus to gain better understanding of the rules pertaining to this matter.

Offshore Banking

This is one of the best things in Cyprus. The banking services swore an oath not to reveal information about its beneficial owners unless ordered by the court, only after careful scrutiny of the Cypriot Government. This is a benefit given by the Government in exchange for the trust and confidence given them by these investors and business persons. Establishing your offshore bank account can be done even while you are abroad through a legal or financial representative firm in Cyprus. Coordinate the requirements that have to be submitted for them to submit it in your behalf for the speedy processing of your documents. Once approved, you can enjoy the numerous benefits provided to offshore bank accounts including the ability to perform money transmissions in multiple currencies and conduct large financial transactions with minimal fees. Moreover, it allows you to fulfill tax-free investments and enhanced asset protection and wealth management.

Double Tax Treaties

An overview of International Tax Planning in Cyprus will be incomplete unless you mention its Double Tax Treaties including prominent trading countries like the US, France, Canada, Sweden, and Denmark. Registering an IBC in Cyprus permits you to enjoy no exchange control allowing huge transfer of fund to these countries without worries. Therefore, if you wish to expand your business to these territories then there is no better way to begin your quest than by registering your company in Cyprus. Consider it a strategic way to minimize the taxes you will be paying in the future and enjoy the many benefits the Cypriot Government has prepared for you.

About the Author:

Oxford Tax Solutions provides efficient and affordable Cyprus Taxation services including expert analysis on Cyprus Double Tax Treaties, Cyprus Tax, and variety of accounting and audit services to assist with your company’s growth.