Pros and Cons of Cyprus for your Offshore Business

The Republic of Cyprus is the third largest island in the Mediterranean and an attractive location for offshore business formation. It is a tourist destination with crystal blue waters and white sand beaches. But for the investor, it is ripe with opportunity.

Cyprus has an advanced economy and a legal system that is aimed at financial growth. The jurisdiction allows for a variety of offshore business vehicles including: sole proprietorships, general and limited partnerships, private companies limited by shares or guarantee, public companies limited by shares, exempt private companies, trusts, or foreign companies with branches in Cyprus. Private company limited by shares is the most popular choice of investors, due to the wish for unsurpassed tax-optimization. However, trusts are also quite prevalent because they can be beneficial by themselves or with an international business.

Many investors choose Cyprus because it has an English-based legal system and a wide range of high-tech services available for offshore business formation. Cyprus is quickly developing into the leader in low-tax offshore companies because of the investor’s ability to develop a corporate structure that meets his or her foreign company’s needs.

Cyprus has the lowest tax rate in the European Union and offers many incentives to attract new investors. For instance, stock trade profits are not taxed, and profits made outside of Cyprus are not taxed. The jurisdiction does not penalize companies that reorganize or restructure. Additionally, Cypress has signed Double Tax Treaties with many other countries to prevent offshore businesses from being over taxed.

Unlike many jurisdictions, Cyprus is not a safe haven for offshore businesses. However, Cyprus offers a unique blend of tax breaks and incentives, which enables it to offer companies better tax planning options. Its favorable tax regime has been backed by government policies and laws, ensuring no surprise changes in legislation.

Cyprus has sometimes been referred to as the “ultimate international business center,” which is backed up by over 120,000 businesses that call it home.

http://www.ukincorp.co.uk/s-O8-offshore-cyprus-company-formation.html

http://www.lawyers.com.cy/CyprusCompanies/tabid/68/articleType/ArticleView/articleId/17/Why-Cyprus-Benefits-of-the-Cyprus-Offshore-Company.aspx

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Filed under Offshore business, offshore business Cyprus, offshore business formation, offshore business jurisdictions

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