Kyriakos Tramountanellis x / Monday, December 16, 2024 / Categories: Cyprus Company Tax, Articles Cyprus is the most attractive jurisdiction for Company shareholders. We analyse why? Cyprus is for the Owners. Shareholders that is! Over the last few years Cyprus has transformed itself to a fully fledged EU member fully compliant with AML regulations and EU directives to such an extent that it is one of the most attractive EU Countries for Company / Branch or Headquarter relocation. But besides the Common law (our law here is the Anglo Saxon - the one used in the United Kingdom), the EU family and law protection, what business owners tend to like is the actual Low Relocation Costs and of course almost luck of any Taxation Cyprus Tax System is for the Shareholders + Owners of Groups / Companies / Branches. What Cyprus Offers to the Company Owners? 1. Low relocation and ongoing operational costs ---> Bigger profits for the shareholders - lowest payroll costs in the EU. Read more here - existence of continuance funding for new recruits - up to 50% tax waived for overseas employees. Read more here - existence of continuous funding schemes and subsidies for new business set ups.Read more here - living expenses extremely low when compared to main EU countries (but vary from city to city) 2. Low effective Corporation Tax (less than 12.5%) ----> Bigger profits for the shareholders - relaxed company expenses culture by the Cyprus Income Tax Office results to an effective tax rate usually to 8% or 9% (not 12.5%) - certain categories of income are entirely tax free (disposal of shares / securities not crypto assets - certain rules apply) - certain categories of companies are taxed differently avoiding even further the 12.5% corporation tax Read about Corporate Cyprus here. 3. Tax Free Dividends ---> shareholders take home more! - between group companies - between Cyprus Company and its shareholder (if not Cyptiot living in Cyprus). Read more here - no withholding taxes - bilateral agreements with almost every country (up to 65 double tax treaties existi) ensuring avoidance of double taxation and / or a ceiling to it. Watch the video here. Learn more on Cyprus tax benefits. 4. You can not ask for more. Rather you can if you fall into one of the below categories: Feel free to send me the enquiry anytime at kt@cyprusaccountanta.com.cy and we will explain in more detail the below tax benefits. Alternatively, search for them (hit the search button) on our website and articles explaining them will pop up. - Shipping - Option to be taxed based on the tonnage system instead of the 12.5% corporation tax --> much cheaper than then 12.5% - IT companies - IP Box - effective tax 2.25% instead of 12.5% - Investment Firms - trading of securities is tax free, only passive income is taxed at Corporation Tax level if such passive interest exceeds operating expenses of the company--> usually entirely tax free - Movie Companies - rebates of costs incurred can be returned up to 35%. Read explanatory article 5. Which Companies Trusted Cyprus so far? Viber Revolut 3CX Microsoft, ASP, Oracle, Branches Wargaming Exness IRONFX Point 9 Whippe CR Kardex eToro TSYS Amdocs Want to read more? Click here. Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as legal or tax advice. Please consult with a professional tax advisor for advice on your specific situation. CYAUSE Audit Services Ltd is a dedicated firm committed to providing SMEs and individuals with unwavering levels of tax and accounting services. Our knowledgeable staff work tirelessly to ensure clients' needs are met at the highest level. We provide a full spectrum of services with an emphasis on Company Incorporation offshore & onshore, Audit & Assurance services, Accounting and International Tax Planning to our local and international clientele. Contact us If you would like us to assist you with your investment firm or fund please contact us at enquiries@cyprusaccountants.com.cy or call us at +357 22 336 309. Previous Article 6 Tips for a Successful Cyprus Bank Account Opening Application Next Article Cyprus Company Director Responsibilities & Misconceptions (must know!) 1263 Rate this article: No rating Tags: dividend taxcypruscryptoInvestment firmsShareholdersCorporation taxTaxationRelocationTax free dividendsDeemed DividendsFunding schemesSubsidiesEU relocationcypruslifecyprus workcyprus moneymove to cypruscyprus limited companycyprus fundsCyprus Income Tax Officerelocation to cyprusincorporation of cyprus companycyprus bankdouble tax treatycyprus limited companiesrevolutDividendAML regulationsEU directivesEU CountriesCommon lawbusiness ownersLow Relocation CostsCyprus Tax Systempayroll costsoverseas employeesCyprus Holding Companiescyprus hirecyprus rentstax on dividendscyprus vatcyprus shareholdersdividend taxationtaxing cyprus dividendsattractive cyprusadvantages for setting up in cyprusonshore set upeu set upeu cheap companyeu attractive companychoose eu jurisdictioncaspcrypto assetsCyprus holding company tax benefitsTax-free dividends Cyprus Please login or register to post comments.