Cyprus Tax law
Cyprus tax law | The Cyprus tax environment and its multiple advantages
In Cyprus there is a beneficial system of double taxation treaties offered for use by non-resident companies and a very specialized infrastructure. The documentation for the companies’ registry must be in Greek and bank referenced. Copies of passports must also be forwarded to the central Bank of Cyprus before a company grants an offshore status.
The jurisdictions of Cyprus are one of the most preferential for those looking for a residency permit at competitive tariffs. Consequently, Cypriot legislation permits an investor founding either a genuine offshore branch or an local Cypriot company the ability to be granted an reliable Cypriot residency permit.
To meet the requirements, it is necessary to show management and control. Once office conveniences have been set-up it is then achievable to arrange residency permits for the favorable owner and his family within a short time period. The company itself will pay a 4.25% tax rate on its world-wide profits which will be charged at the end of the financial year based upon proposed audited accounts.
It is necessary to keep in mind that a Cypriot non-resident company must only manner trade outside of Cyprus and that at the same time as the company itself pays only a 4.25% tax rate any money reserved for the use of the advantageous owner will pay 50% of the normal individual tax rate, that if the beneficial owner plays an dynamic role in company affairs. This equates to a maximum tax rate of 20% but normally considerably lower.
Cyprus as a popular tax system for public and trading companies can find important advantages in the double taxation treaties system available to offshore companies.