A few questions about Cyprus

Dapdap

New Member
Hello everyone,

I have read the forum a bit but couldn't find some of the answers to my questions:

I am planning into creating a new company for my internet business, and I am currently looking at Cyprus as my #1 choice.

A quick background of the activities:

I will be the only shareholder of the company.

Income for my company will come from:

- Affiliate marketing payments from EU companies
- Getting royalties on products sold on the US market (so the double tax treaty comes in handy, and it's also the reason why i can't create a US LLC in Delaware or Wyoming for example)

1) As i will not live in Cyprus, would having a non resident company in Cyprus be a good idea? What are the drawbacks compared to a resident company?

2) How hard is it to get a bank account with Iban for your company?

3) About paypal, it seems to be pretty hard to get a business account, but I don't really understand why? Is it just hard for non-resident companies and resident companies are ok? Is it a question of VAT number or something?

4) I have read that accounting was the expensive part of maintaining the company. Is it possible that I take care of it myself ? Or is it mandatory that a 3rd party accountant takes care of it?

5) As a EU resident/citizen but non Cyprus citizen, can I create a Cyprus personnal bank account and pay myself dividends on it? Where would theses be taxed, in Cyprus, or in the country I live in?

Thanks in advance for your help!
 

bountymounty

Trusted Member
Business Angel
Mentor Group
you never got an answer to your questions it seems :(

1) As i will not live in Cyprus, would having a non resident company in Cyprus be a good idea? What are the drawbacks compared to a resident company?
yes, if you don't want the company to be registrered for VAT at any point or need a resident certificate it's good and you don't have to pay corporate tax.
2) How hard is it to get a bank account with Iban for your company?
it's easy if you don't have any restricted business activity.
3) About paypal, it seems to be pretty hard to get a business account, but I don't really understand why? Is it just hard for non-resident companies and resident companies are ok? Is it a question of VAT number or something?
you need full cyprus nominees if this shall work.

4) I have read that accounting was the expensive part of maintaining the company. Is it possible that I take care of it myself ? Or is it mandatory that a 3rd party accountant takes care of it?
You can take care of it yourself however you will need to have somone with Greek skills to submit it for you.
5) As a EU resident/citizen but non Cyprus citizen, can I create a Cyprus personnal bank account and pay myself dividends on it? Where would theses be taxed, in Cyprus, or in the country I live in?
In the country where you live.. it is always the receivers country where you get taxed.
 

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