Cyprus Companies

Cyprus has fast become one of the more popular places for offshore company formation.

Cyprus was occupied by the United Kingdom from 1878 until they relinquished it back in 1960, however this has left a positive mark on the Island, in particular that it follows British Common law especially when it comes to corporate law. The majority of the Island is English speaking making it a more friendly option for English speaking business to be transacted.

The Island relies heavily on tourism for its economy, but light manufacturing contribute along with its good location and advanced physical and social infrastructure making Cyprus one of the most prosperous Islands in the Mediterranean region.

Cyprus joined the European Union in 2004 and adopted the Euro in 2008 replacing the Cyprus pound.

Corporate Advantages of Cyprus:

Cyprus has many other attractive qualities which make it one of the more appealing choices for International Business, such as it’s low corporation tax rate of just 10%, the lowest in the EU as well as numerous other tax benefits specifically designed to promote foreign investment in Cyprus. – Click here for more information on Cyprus Taxation.

Cyprus has full exemption from Capital Gains Tax on any profit from the disposal of securities of companies barring immovable property in Cyprus – Click here to find more information on Capital Gains in Cyprus
In addition to the numerous tax benefits Cyprus also has double taxation treaties with over 40 other countries including most of the high tax countries in Western Europe and are continuing negotiations to further extend their network of treaties. Check this article for a full list of Cyprus double taxation treaties.

Cyprus is a full member of the EU and its central location make it ideal for interaction with Europe. Cyprus has a modern and competitive infrastructure along with an efficient and sophisticated business environment.

Cyprus Registry and Laws

The Cyprus registrar of companies has been in existence for over one hundred years and has developed a modern and sophisticated system including electronic filing on forms. Cyprus Company Registration can be done quickly. Cyprus does have a publicly accessible records, but this is only on the named Directors, Secretary and Shareholders of the company. Chesterfield’s common practice is to use in house nominee Directors, Secretary and Shareholders on our companies. There is no requirement to disclose the ultimate beneficial.

Cyprus has been implementing laws and regulatory requirements in connection with our industry which are now on par with many other EU states and has now announced that any company wishing to provide fiduciary services in Cyprus must be regulated which furthers adds to its reputation as being a respected jurisdiction – Check the following article for  Cyprus to become regulated


Cyprus Banking

Cyprus is home to many reputable Banks as well as numerous International Banks with a permanent base so there is a lot of choice. The National currency has been the Euro since 2008 following Cyprus’s inclusion in the EU, but banking may be done in various currencies. Cyprus banks have modern sophisticated international systems and are able to transact with Europe efficiently. Chesterfield can liaise with several banks in Cyprus to fast track accounts in order that they may be opened within a few days. – Check this article for more information on Cyprus banks

Cyprus VAT

Cyprus first introduced VAT in 1992 and largely based this on the British VAT legislation of 1983. This has been amended several times since this date to comply with the EU VAT directive. It has a modern and respected tax regime and as it is a full member of the EU so is a good choice when looking for a reputable jurisdiction for your VAT Registration. It has a competitive VAT rate when compared to other EU Countries and registration and credits can be processed quickly. Chesterfield can assist you in every aspect of Cyprus VAT Registration.

Cyprus Structures

Cyprus has various typical types of Companies and structures each with their own advantages. Chesterfield are experts at Cyprus Company Incorporation and administration of Cyprus companies and Trusts and can assist in Structuring a Cyprus Offshore Company to best suit your business needs whether it be a simple one company structure or something more complex.
For more information on some of the more popular company types please follow the links below;


Intellectual Property Law or IP law as it is more often referred to is the Legal entitlement in connection with creative ideas and works such as literary works, artistic works, designs and inventions. Cyprus Intellectual Property Law is in line with the European Union and Cyprus is a member of the Office for Harmonization in the Internal Market for the registration and protection of Trade Marks and Industrial Designs within the European Union. Cyprus is also a member of the World Intellectual Property Organization and is party to numerous International Conventions and Treaties – Check this article for more information regarding Cyprus Intellectual Property

Permanent Residency in Cyprus

Cyprus has made clear terms and conditions for permanent residency with numerous benefits and flexibility to encourage investment from third country nationals.
This has led to an influx in of wealthy families and businessmen, predominantly Chinese, Russian, Middle Eastern and beyond buying property or investing in Cyprus in order to gain permanent residency so that they can travel visa-free throughout the European Union. Permanent Residence holders can also apply for a Cypriot passport after seven years – Check this article for more information regarding permanent Residency in Cyprus

Chesterfield and Cyprus

Chesterfield established an office in Cyprus ten years ago. The number of staff quickly increased and a new office location had to be located within the first year. Chesterfield has expanded significantly in Cyprus and is at the forefront of the industry. A new purpose built office, was completed in early 2013 to accommodate our ever increasing business . Our base in Cyprus has been a significant factor in Chesterfield’s success.

Chesterfield can help you every step of the way from initial structuring including tax structuring and Asset Protection. To Incorporating a Cyprus Offshore Company, Opening a Bank Account, Providing corporate Services including dealing with the Cyprus Registrar of Companies and any Cyprus VAT Registration.
 

Cyprus Double Tax Treaties Double Tax Treaties are aimed to avoid...

Below is a list of the current treaties...

 

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Cyprus to become Regulated Cyprus to become Regulated

Benefits of a BVI Company Benefits of a BVI Company Benefits of a BVI Company Benefits of a BVI Company

Cyprus Bank Accounts

Chesterfield has a strong relationship with various banks worldwide.

One such country, for clients who have administration services there and therefore is convenient is Cyprus. There may be various logistical and commercial reasons for this, however our base in Cyprus allows us to interact personally with the banks therefore resolving any issues quickly.

Cyprus has national banks such as Bank of Cyprus and Marfin Laiki Bank, but also has internationally known banks such as Barclays Bank which whilst being situated in Cyprus has a London base.

The following are advantages to choosing to bank in Cyprus:

  • Our strong relationship and close proximity with several reputable banks in Cyprus
  • There is no need for a personal appointment at the bank. Unlike other jurisdictions banks, Cyprus do not require to meet beneficial owners in person and so they are not expected to travel to Cyprus for an appointment
  • Cyprus banks are well known and respected in the European Union and Internationally
  • The banks can trade in various currencies
  • Bank accounts can be fast tracked to be opened within a couple of days (providing all information and compliance are supplied)

For more information regarding opening a bank account in Cyprus or anywhere else worldwide please follow the link below or call us on our offices

Telephone Number: 44 20 7097 1385

Capital Gains in Cyprus

Capital Gains on Shares

In Cyprus there is a full exemption from Capital Gains Tax on any profit from the disposal of securities. Securities can be shares, debentures, government bonds or other securities of companies or other legal persons which have been incorporated in Cyprus. This is a distinct advantage when incorporating a Holding Company in Cyprus.

This rule does not apply to immovable property in Cyprus.

Capital Gains On Property

Capital Gains is a tax arising when you sell real property at a profit. In Cyprus this tax rate is 20% and whilst this is not the lowest in Europe it is very competitive when compared to countries such as France and Denmark that have a high Capital Gains Tax rate. This tax does not apply to profits resulting from the sale of overseas property by residents who were not resident in Cyprus at the time of the purchase, therefore you can by a property in Cyprus and then become resident and sell this abroad without becoming liable for this tax in Cyprus, although you may be liable for capital gains tax in the country where the sale took place depending on that countries rules. This may be further enhanced by the transfer of the property into a company or trust

There are several exemptions under the law as follows;

  • Transfers arising upon death
  • Gifts made to relatives (this is only up to third degree relatives being great grandparents and first cousins)
  • Gifts to companies where the shareholders are family members.
  • Gifts to Charities or Government
  • Transfers resulting from re-organisation
  • Exchange of property under the agricultural land laws
  • If the property is compulsory purchase
  • Exchange of properties (subject to conditions, although this is very complex and it is recommended not to attempt without professional assistance)

There is a deduction of €17,086 which can rise as high as €85,430 if the property has been the main residence of the person to whom the tax is applicable for at least five years. These are personal deductions so if the property is in more than one person’s name then each person is entitled to the deduction. These allowances are granted once in the lifetime of the individual, until fully exhausted, so whilst you can claim a combination of them you can never exceed an overall deduction of €85,430. There are certain conditions regarding these deductions concerning the size of the property and again professional assistance should be sought. Further allowances can be sought in connection with expenses as long as invoices and receipts are submitted.

The amount of Capital Gains tax you have to pay in Cyprus can be reduced in a couple of ways. Any Capital losses may be used to offset the gain. If there is furniture being sold with the property this can be sold separately using a separate agreement so will not be liable for Cyprus Capital Gains tax.

For more information on Capital Gains Tax in Cyprus or any other jurisdiction please follow the link below or call us on our offices Telephone Number: 44 20 7097 1385