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Are the TAX values hight in Cyprus?

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richardm1964

Offshore Agent
If you have an offshore company in Cyprus, you can enjoy so many tax benefits.


Income tax ranges from 10 to 20%.


No tax on dividends.


No Capital gain tax.


No withholding tax on dividends.


Exemption from stamp duty on any contracts entered into by offshore entities.


No estate duty on the inheritance of the shares provided the deceased was not domiciled in Cyprus.
 

Admin

Forum Moderator
Staff member
No tax on dividends.
No Capital gain tax.


No withholding tax on dividends.


Exemption from stamp duty on any contracts entered into by offshore entities.


No estate duty on the inheritance of the shares provided the deceased was not domiciled in Cyprus.
This is correct, else only one small correction, the tax on net profits for a Cyprus company is 10% if it is registered as regular trading company. The exception is that if you have all your business activity outside of Cyprus then you have no tax on net profits.
 

Moh1

Corporate Services
The exception is that if you have all your business activity outside of Cyprus then you have no tax on net profits.
Does this really mean you dont have to pay any company tax / corporate tax ?


How cool is that.... will soon move on with a new business venture and will defiantly look into Cyprus.
 

Admin

Forum Moderator
Staff member
Yes if the Cyprus company don't have any business activity with other Cyprus companies or Cypriots in general and is registered with foreigners you don't have to pay any tax in Cyprus.


Please don't be confused, you still have to pay personal income tax in your home country once you take any money out there.


Some people make loans to their companies when they want to take some money out, this is often a way to avoid personal tax... but check this with your local tax advisors.
 

mneilson

Corporate Services
Business Angel
Admin said:
This is correct, else only one small correction, the tax on net profits for a Cyprus company is 10% if it is registered as regular trading company. The exception is that if you have all your business activity outside of Cyprus then you have no tax on net profits.
Thanks for clarifying. So one can easily set up a office in Cyprus and carry business overseas to save the 10% tax on net profits. Am I correct?
 

Moh1

Corporate Services
What you can try to do is to use a Belize or Seychelles company for AlertPay, have them transfer your funds to your cyprus bank account, this works pretty good for me so far...


You will also have to deal with the VAT as per this thread, /forum/f13/new-vat-regulations-2010-europe-9520/, which you can avoid doing it as above.
 
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TRX

Corporate Services
Mentor Group Gold
Elite Member
Thank you for the advice Moh1, nice will try this also with a few other payment processors and reply here...
 

zozexroninho

Offshore Agent
Need advice once again....


I m planning to start a Seychelles IBC, with a Cyprus Bank account for online B2C without physical presence (selling ebooks). Only downloadable material. I also plan to open a personal account


1.) With this strusture i cant use Moneybookers and Paypal, but i can use Clickbank and 2co. Correct?


2.) The corporate tax for this structure is 0%, with no VAT. Correct?


3.) There is no obligation to keep income-outcome books, althought the bank may require this information?? Do i have all the time to prove where i got the many?


Does anyone has experiance about this?


4.) Is there any obligation to send to my customers e-receipts? Can Seychelles company send e-receipts allover the world?


5.) I can withdraw the money from a credit or debit card but only for company use. If i use in an ATM with no surveillance camera the debit card to withdraw money, is this safe?? The debit card must be anonumous? Does cyprus banks offer anonumous debit cards?


6.) A person who is cypriot resident... Can he receive divident from a Seychelles IBC in his personal account? How much in this case is the personal tax he should pay?


7.) A person who is not cypriot resident (Greek resident)... Can he receive divident from a Seychelles IBC in his personal account (in the same Cyprus bank with the IBC comporation account)? How much in this case is the personal tax he should pay?


Please help... i m in the final steps to learn them all and start my own buissness :)
 

Admin

Forum Moderator
Staff member
1.) Yes, as far as we have been informed.


2.) Yes thats correct


3.) Thats correct, don't even the bank will ask for this!


4.) Yes they can do that, not required, but it would be to do.


5.) Correct, best is a Debit card not a credit card, because the latter requires security for the bank, you can get a anonymous debit card, contact us for more information.


6.) Yes that is possible, normal personal income tax apply.


7.) See answer to question 6


Hope it has been of help otherwise feel free to ask again...others are more than welcome to suggest other alternatives :)
 
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Sansa

Active Member
If you mean high rather than hight, as other people said, its not high. Sometimes there's no tax to pay at all. That's the best thing about Cyprus :D
 

SasxInc

Active Member
If you mean high rather than hight, as other people said, its not high. Sometimes there's no tax to pay at all. That's the best thing about Cyprus :D
Sorry to say but Cyprus don't have that golden time that had once. Now they implement tax in all sector and that above double digits :(
 

RamsayB

Active Member
Sorry to say but Cyprus don't have that golden time that had once. Now they implement tax in all sector and that above double digits :(
That's very bad news and sad as well. I've been thinking of Cyprus as one of the best but since its population has risen up lately, I think that's the reason why their taxes came up.
 

negon

hannibal the cannibal
BANNED MEMBER
If one is looking to setup a legal offshore structure in Europe Cyprus is one of the best destination to register a company in your total setup, so you need to hire CPA's and a tax lawyer to help structure the double tax treaty and to make use of other tax benefits.
 

suzy

Corporate Services
Mentor Group Gold
Business Angel
Right now I work with an local tax lawyer and CPA to setup my Cyprus company to hold shares in a Spanish company where dividend will be paid to the Cyprus Holding after one year and if the Spanish business will cast profits to it's owners. It seems to be a legit way to reduce tax.
 

I'mRobot

Offshore Agent
I will be speaking with an accountant in the beginning of January to find out what benefits I would have for my business when incorporating in Cyprus.! Will update this thread then.
 
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