The Cyprus Company: Corporations and Individuals
A Cyprus company can be used for almost anything by corporations, individuals, and for non tax uses. The possibilities are endless. Cyprus is an EU member state with an exceptionally advantageous tax system.
Corporations can use a Cyprus company for the following purposes:
- Financial Services
- Shipping and Ship management
- International trading commission agent & service companies
- Holding Companies
- Group Finance Companies
- Royalty, Payment & Trademark Companies
- Internet & E Commerce
- Construction and Engineering
- Printing & Publishing
- Real Estate
- Headquarter Companies
- Employment Companies
- Administration& Treasury Management
- Executive Recruitment & Employment
- International banking units
- Captive & General Insurance
Uses by individuals are the following:
- Entrepreneurs & Professionals
- Entertainers, Authors & Athletes
- Intellectual Property Owners
- International Investors
- Wealth Inheritors- Individuals
- Pension Receipt
Non – Tax Uses benefits through Cyprus structures are the following:
Using EU Status of Cyprus Entities in order to transact internationally. For example taking advantage of less stringent due diligence requirements by banks and other institutions and entities, and EU VAT Registration on the EU VIES is considered as a criterion of added commercial credibility.
- Easier repatriation of funds
- Reduction in employee costs
- Improved investment returns
- Creation of an International Equity base
- Access to new sources of finance
- Estate Planning
- Confidentiality in Business and Financial affairs (anonymity)
- Asset protection and shielding strategies
- Deployment of expansion strategies
- Exemption from exchange controls
- Reduction in securities transaction costs
- Hedging against currency Fluctuations
- Pre-immigration planning
Lets take a couple of these and look at them in more detail.
With regards to Corporations:
Investments: an investment structure that includes Cyprus, has a very minimal tax leakage. A Cyprus investment vehicle can collect income (with reduced tax), has limited or non existent withholding tax under double tax treaties or EU Directives. With regards to foreign dividends that are exempt, and capital gains (subject to conditions) tax in Cyprus is low or at 0%. Another benefit is that income can be repatriated in any form the investor chooses without withholding tax using income conversion or transformation methods).
Cyprus investment companies are great for finance companies royalties, head office operations for Southern Europe, Russia, Middle East, and central Europe.
With regards to Individuals:
Wealth Inheritors: here people who inherit wealth can use a Cyprus Entity to reduce their inheritance taxes by converting the inheritance into low or no tax jurisdictions. Another option is to restructure the income the inheritance generates to protect their assets to be tax free.
These are just a couple of many uses a Cyprus company has.