Cyprus non-resident

[GrumpyMess]

Is a Cyprus non-resident company a good setup? The main purpose is to keep assets offshore. My country doesn't have a CFC law yet. What are pros and cons of this setup? Will there be any difficulties in opening a bank account in a trustworthy EU banks?

 

[undercover]

Pros, you don't have to pay tax in Cyprus! cons, you can't register the company for VAT, you can't make use of double tax treaties and you will have to pay taxes locally.

 

[realcat]

you can't register the company for VAT.

why is this bad?

 

[undercover]

It does not need to be bad! I just mentioned that it is not possible to register the company for VAT if it is non resident!

 

[user9823671]

Pros, you don't have to pay tax in Cyprus! cons, you can't register the company for VAT, you can't make use of double tax treaties and you will have to pay taxes locally.

Does Cyprus declare the ownership of the company to the owners home country? I believe this is the case for some countries due to some new laws. i.e. The US / EU knows the owner (or can find out) even with nominees?

But is this the case for 3rd world countries?

What about people who have double nationality?

If a non-resident cypruss corporation was created with EU details, but you live in Bolivia, South America where you also have citizenship.

From what I understand this would be illegal (tax evasion) in Bolivia, but they would never know and not be able to lean on Cyrpus so.

 

[JohnLocke]

Does Cyprus declare the ownership of the company to the owners home country? I believe this is the case for some countries due to some new laws. i.e. The US / EU knows the owner (or can find out) even with nominees?

The registry of companies does not report anything. Only if you open a bank account you will be reported. To avoid your name to show up on any public registry you appoint nominees.

 

[blockchain4ever]

The registry of companies does not report anything. Only if you open a bank account you will be reported. To avoid your name to show up on any public registry you appoint nominees.

Are you sure? EUs AMLD5 includes requirements that registers of beneficial ownership information created under the AMLD4 will be made accessible to the general public.

 

[myhand]

Are you sure? EUs AMLD5 includes requirements that registers of beneficial ownership information created under the AMLD4 will be made accessible to the general public.

I'm sure, I have checked several companies after your posting here and @Admin's - there is no way to see who the beneficial owner is of the company, nominees are possible but nothing else is available.

 

[JohnLocke]

OP where did you decide to setup your company after all?

 

[TurnedToRobot]

I have registered a Cyprus non resident company and don't pay tax - the tax report was filed dormant.