Why Cyprus is the perfect destination to establish your business?
One of the major benefits of Cyprus is the Corporate Tax Rate. Cyprus has one of the lowest tax rates in the EU with only 12.5% Corporate Tax.
Holding companies in Cyprus benefit from no withholding taxes on the distribution of profits and no capital gains or income tax is applicable upon the liquidation of the participations or the liquidation of the company itself. Company mergers, takeovers and reorganizations are tax exempt.
Cyprus offers a favourable tax regime for holding companies, where no tax on consolidation is due and no controlled foreign company (CFC) rules exist. Holding companies in Cyprus benefit from the provisions of the EU Parent-Subsidiary directive and the Interest and Royalties Directive, meaning that there is no withholding tax for these companies.
A Cyprus company can be incorporated with only one Director and Shareholder. Every person can be a director or a shareholder, regardless of their nationality.
Filing in English is permitted. This makes it much easier for foreigners to get acquainted with all documents and rules when incorporating a company.
The Cypriot holding company must not register for VAT if the main business activity is the acquisition and holding of shares in other companies and the holding company does not take part in the management or administration of its client companies.
A bank account for a Cyprus company can be open quickly and efficiently without the directors of the company being present.