Although Cyprus is no longer the offshore tax haven that it used to be before the EU came calling, it remains a dream destination for many foreign investors. An efficient and sophisticated business environment, coupled with corporate income tax of just 10%, help to explain the pull. If you’re thinking of opening a European company, think of Cyprus.
The island has double-taxation treaties with 27 other countries, including most of the high-tax countries in Western Europe, and many states in Central and Eastern Europe. As a low-tax centre, this makes Cyprus a particularly effective location for companies aimed at emerging markets. On top of this, the economy is strong and stable, and business costs are generally low.
Most investors choose one of the following corporate formats:
- limited company;
Any private company based in Cyprus that is 100% foreign-owned is regarded as an offshore company, although the term
International Business Company (IBC) is also used. But there is no longer any difference in tax treatment between an offshore company and a regular Cypriot company. Cyprus is an important regional investment centre and has developed sophisticated international banking facilities to support it. Many major international banks have branches here, together with local commercial banks, and the financial system, supervised by the Bank of Cyprus, is robust.
For assistance in opening a bank account in Cyprus, please contact us for further details.