Having a legal company in cyprus

wachu

Member
Hello,

I want to incorporate a legal company in cyprus for my web business.

So according to this :
Cyprus

I will have the 12.5 company tax rate and my personnal tax in my country.

Is that correct ?
 

negon

hannibal the cannibal
BANNED MEMBER
Entrepreneur
Seems you never got a reply to your thread :)

Yes that is correct you pay 12,5% tax. You can also register the company non resident so there is no tax to be paid! This is sometimes a better solution depending on what business you are into.
 

Starlights

Building Trust
Entrepreneur
where can i find cheap and good accounting service for my cyprus company i try search internet but not find any good someone could recommend any?
 

clemens

Corporate Services
Business Angel
Mentor Group
You typically find it with the service provider that register the company for you!
 

Admin

Forum Moderator
Staff member
Hello,

I want to incorporate a legal company in cyprus for my web business.

So according to this :
Cyprus

I will have the 12.5 company tax rate and my personnal tax in my country.

Is that correct ?
That's correct. You can register the company non-resident and avoid to pay tax at all! You can also register the company simply onshore and pay the 12,5% tax on profits but ask your CPA to help you to reduce the profits legally! So you can register the Cyprus company for VAT and comply to the European VAT regulations.
 

bountymounty

Trusted Member
Business Angel
Mentor Group
Hello,

I want to incorporate a legal company in cyprus for my web business.

So according to this :
Cyprus

I will have the 12.5 company tax rate and my personnal tax in my country.

Is that correct ?
where did you get your company setup?
 
That's correct. You can register the company non-resident and avoid to pay tax at all! You can also register the company simply onshore and pay the 12,5% tax on profits but ask your CPA to help you to reduce the profits legally! So you can register the Cyprus company for VAT and comply to the European VAT regulations.
If you register your company as a non-tax resident, then you'd have to pay taxes in your home country.
 

Admin

Forum Moderator
Staff member
That's correct, the question is about corporate tax and not personal tax. There are hundred of threads on this forum alone that outline it clearly that you have to pay personal tax from your personal income i.e. when you transfer money from the company to your self.
 

diablo

Banned User
BANNED MEMBER
Business Angel
If you register your company as a non-tax resident, then you'd have to pay taxes in your home country.
Agree, if one is looking for 0% corporate tax you simply register the Cyprus company non resident! You can't get a certificate of residency nor can't you get VAT registration for this company if you do so. For most it will work just fine.
 

GrumpyMess

Building Trust
Entrepreneur
Agree, if one is looking for 0% corporate tax you simply register the Cyprus company non resident! You can't get a certificate of residency nor can't you get VAT registration for this company if you do so. For most it will work just fine.
Doing this way will be any corporation tax in my home country(no cfc law)?
 

negon

hannibal the cannibal
BANNED MEMBER
Entrepreneur
you can't make use of double tax treaty if you don't pay tax somewhere.
 

extremedox101

Trusted Member
Business Angel
i'm so glad and thankful i don't have to pay taxes/vat on my income , the taxation sound so taxable .hi%#
 

GrumpyMess

Building Trust
Entrepreneur
that is how it works normally! But this only apply if you want to make use of double tax treaties.
By double tax treaties you mean witholding tax? I don't care of it. I just don't want to pay the corporation tax for Cyprus company in my home country.
 

GrumpyMess

Building Trust
Entrepreneur
No, double tax treaty means if you pay tax in country A you don't have to pay in country B where you live! This is only available for corporate tax in the situation where you can proof the company has paid tax in country A.
So owning a Cyprus non resident company has no benefits if I am still liable to a corporation tax in my country
 

diablo

Banned User
BANNED MEMBER
Business Angel
it is the exact same thing with any offshore company. The question is if you pay tax or not that's why people setup anonymous corps from time to time.
 

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