Withdraw money from a company bank account in Cyprus

[Semfiguras]

Hi all!


I'm thinking of opening a comapny in Cyprus with a local bank account.


Now, how is the withdrawal o money from a company account treated?


- do we need to have a justifications for it, or can i do whatever i want with the company money?


- Can i only spend money from the company with related activities of the company?


- Let's say i have 100.000€ in the bank account, and withdraw 15.000€ for my birthday party , will there occur any accountable/audit problem?


Tks

 

[lavel]

Well, I just withdraw the money I need with my debit card and make a invoice for the amount spend from another company I anonymous own. Never had a single issue what so ever.

 

[jaystefan]

Well' date=' I just withdraw the money I need with my debit card and make a invoice for the amount spend from another company I anonymous own. Never had a single issue what so ever.[/quote']
in some countries you pay tax for every payment you send to offshore company. Isn't it same with Cyprus company. otherwise it sound too easy say there is cyprus comapny who let's say renting cars it's coming end of year they see they will have profit of say EUR 30000 they invoice anonymous Seychelles, Belize etc company to perform seo services on their site for EUR 25000 and voila company have to pay now only taxes from 5K needless to say we already know who own seo company

 

[lavel]

Well, it depends very much how you structure in.. in a nutshell you can do exactly what you describe even though you own the Seychelles or Belize company! You can't just tell it to anyone of course!

 

[jaystefan]

so in Cyprus there is not any taxes for payments made to offshore jurisdictions???

 

[JohnLocke]

You can transfer money between a Seychelles company and a Cyprus company without to pay tax! considering to do the transaction the right way!

 

[jaystefan]

You can transfer money between a Seychelles company and a Cyprus company without to pay tax! considering to do the transaction the right way!

ok so if Cyprus company transfer money to Belize company for example for some services say EUR 5000 then cyprus company have to pay tax for that payment right? And if pay to Seychelles company then no tax, but since Cyprus and Seychelles have DTA then if some suspicions arise Cyprus government can easily get details of owner from Seychelles company?

 

[JohnLocke]

ok so if Cyprus company transfer money to Belize company for example for some services say EUR 5000 then cyprus company have to pay tax for that payment right?

True.

And if pay to Seychelles company then no tax, but since Cyprus and Seychelles have DTA then if some suspicions arise Cyprus government can easily get details of owner from Seychelles company?

That's true, no tax to be paid. Your mixing something up, DTA has nothing to do with the Exchange agreement some countries may have with each other. So. if you doing it this way you can avoid to pay corporate tax between the entities.

 

[lavel]

You can set it up like this.


Company 1 - Belize, Seychelles, BVI or other offshore company


Invoices company 2 for services, royalities or copyright's or some other SERVICES (not goods / products) once the payment has been received from the "onshore company" (company 2) you can move the funds to anywhere you want tax free. Company 1 does not pay any tax anyway and company 2's expenses may offset taxable income.


Company 2 - Cyprus company or even UK company

 

[riskprocessor]

I agree that the right way is to withdraw money using your credit card. All you need to do after every transaction is make an invoice and mention the total amount spent on it. This is a safe, hassle-free and less time consuming process.

 

[biskoffshore]

That's how I'm doing things for the last 8 months, no problems at all!

 

[JohnLocke]

That's how I'm doing things for the last 8 months' date=' no problems at all![/quote']
It still works for you? did you open any alternative accounts anywhere else?

 

[lavel]

It still works for you? did you open any alternative accounts anywhere else?

second that? We are doing something similar and that's working for more than 2 years by now.

 

[cyprusbanker]

It's working, nothing has changed since then..!

 

[alain]

so in Cyprus there is not any taxes for payments made to offshore jurisdictions???

If your going to invoice the Cyprus company from say a Belize or Seychelles company there will be no tax in Cyprus. Most often a company in an offshore jurisdiction does not pay any tax i.e. Belize or Seychelles for instant are such type of companies.

 

[vitomerchant]

Will bank ask for any documents when we withdraw Money from Cyprus Company to own account?

 

[buzzoffshore]

Usually they don't.. only if you receive payments for someone who the bank knows is suspicious or if the person or company is on some international black list, then you will be asked to provide some documents i.e. invoice, passport copy etc.

 

[alain]

Ddi you had any luck finding the banking and debit card that fit's what you were looking for?

 

[redeye]

Hi all!
I'm thinking of opening a comapny in Cyprus with a local bank account.


Now, how is the withdrawal o money from a company account treated?


- do we need to have a justifications for it, or can i do whatever i want with the company money?


- Can i only spend money from the company with related activities of the company?


- Let's say i have 100.000 in the bank account, and withdraw 15.000 for my birthday party , will there occur any accountable/audit problem?


Tks

Use a Seychelles or Cyprus company for your venture and you can withdraw money as you like without anyone to ask any questions. It's a pretty simple and straight forward process and unique for these two jurisdictions among other offshore jurisdictions like Belize, BVI, Panama and so on.

 

[JohnLocke]

Second that, Cyprus and Seychelles have a double tax treaty which comes into play and there are several other tax advantage with such a setup.