Our valued sponsor

About Cyprus and Malta as Offshore Jurisdictions


Corporate Services
Mentor Group Lifetime
Jan 2, 2009
Visit site
In 2004, Malta and Cyprus join the EU. Both countries have very low taxation, which Danish companies can benefit by creating a holding company based in one of the two countries.

A decision by the EC Court has held that free movement of capital within the EU is more important than individual countries, between local laws and regulations.

It has opened up entirely new tax-free savings opportunities in EU-low taxing, such as Cyprus and Malta, where corporation tax on capital gains are around 0 and where the corporation is just 10 percent.

- If you have a property or a large financial rewards, it can be legally done by tax-free to distribute assets or tax returns to the holding company in Cyprus, where it will be taxed at zero or with a maximum of 10 percent.

- You can use an offshore company to reduce taxes on current employment income, or to obtain a tax-free financial returns. - And it is totally legal manner!

Local leadership essential

The prerequisite for obtaining a tax advantage by creating a holding company in Cyprus is that it will be managed from Cyprus and that it must be a genuine leadership.

- The pro-management are not accepted, stresses Michael Suramondy and deepens that it need not be as difficult as it sounds, getting a Cypriot leadership to its holding company.

- There are a number of local accounting firms, banks and lawyers who specialize in directing the so-called zero-tax companies.

- And did not trust some of them, one can hire a management team with one of the many international firms specializing in corporate services, which direction of the zero-tax companies also called.

Michael Suramondy recommends that, although the director of his company until you start to earn money. When this happens, you can contact your offshore agency service who can handle the practical in setting up a holding in a low tax country.

Prejudice without team really

We often face the prejudice that the constellation with a foreign holding company is troublesome, but it is a prejudice which has no hold in reality.

- It's not particularly difficult with a foreign company, says Michael Suramondy

- You must submit accounts to the authorities of the country where you are holding and to the "local" tax authorities, but we do not produce records to the local Commerce and Companies Agency.

Increase profits when you retire

If you want to raise proceeds from the Cypriot holding company must pay Local dividend tax if you reside in high tax countries.

Awaiting the other hand, with increasing yields, there is no current taxation and dividends will grow year by year until they choose to get it paid.

- Waiting For example, to receive the proceeds going to retire and close the company, you are taxed a high percent, if you are resident in many of the European countries, says Michael Suramondy.

- If you do as more and more and move to another country when you retire, you can hike up the proceeds back to a relatively low tax depending on where you choose to live.

- Moves For example, in Cyprus you are taxed by 15 percent, takes into Spain dividend tax is 18 percent, and chooses to move to England will be between 0 and 30 percent.

- It is a free to settle in any country as long as it is within EU limits.
Last edited by a moderator:

Latest Threads