ClevverBlog

Highlights
19th Oct 2021

Taxation Documents to File if You Own a Small Business in the USA

15th Oct 2021

THE BRAND NEW CLEVVER COMPLIANCE CENTER

11th Oct 2021

Tokenization of Real Estate

16th Apr 2021

Set up a Business in Cyprus

-REMOTELY WITH CLEVVER'S SUPPORT-

Overview:

  • Cyprus is a full member of the European Union which provides for the possibility of cooperation with any European business partners on beneficial conditions; 
  • The country has one of the lowest corporate tax rates in Europe — only 12.5% on net profit;
  • The jurisdiction of Cyprus has signed a large number of double taxation treaties, more than 50 with other countries; 
  • Cyprus is one of the most profitable EU jurisdictions for ICOs, thanks to its legal framework and flexible tax laws; 
  • There are no exchange controls in Cyprus; 
  • Clevver offers support for the remote company registration in Cyprus. All documentation on incorporation is available in digital format.

The Republic of Cyprus, an island member state of the European Union, is located at the eastern end of the Mediterranean Sea. It has an open market economy with positive growth dynamics dominated by the services sector, mainly including financial services, tourism, and real estate. 

Cyprus is one of the most popular places in Europe for company registration. The combination of favorable tax laws, simple corporate legislation, and the country's stable tax policies has resulted in Cyprus becoming an attractive jurisdiction where thousands of new companies are incorporated every year, making the country a significant international market player. 

Cyprus has an efficient and well-developed legal system and, as a former British colony, is a common law country with business legislation similar to that of the United Kingdom. Since Cyprus is a member of the European Union, a company registered in the country enjoys all the benefits of operating in the EU. 

For all entrepreneurs who have firmly decided to form a company in Cyprus, Clevver offers professional assistance in remote LTD company registration in this promising jurisdiction. Upon request, our experts can also provide many additional services. To find out more, click here

Taxation in Cyprus 

  • The income tax rate (corporation tax) is 12.5%. Income tax is withheld from resident companies on profits from any commercial activity, whether derived from sources within or outside Cyprus. Non-resident companies are subject to income tax on income, the source of which is Cyprus. Income from securities transactions, dividends, and interest from non-core activities is not subject to income tax. 
  • Defense Tax (Special Contribution for the Defense) - from 3% to 30%. It is payable only by tax residents of Cyprus. Interest income earned by a Cypriot company in the course of non-core activities, such as the rental of real estate, is subject to defense tax at the rate of - 30%. 
  • Annual Levy. It is mandatory for all companies (even those not operating) from the first year of registration and is 350 Euros. Payment must be made by June 30 of each year. 
  • Capital Gains Tax - 20%.  
  • VAT (Value Added Tax). The standard rate is 19%, a reduced rate is 9% and 5%. If the company exports goods, the rate is 0%. It depends on the type of activity of the company. 

Benefits of Incorporating in Cyprus 

  1. Cyprus is on the "white list" of the OECD, which includes countries that have implemented international tax standards; 
  2. Dividends are not taxed in this jurisdiction; 
  3. Cyprus has a particularly favorable tax climate for companies whose activities are related to intellectual property (IP). Of the 100% of profits derived from IP, only 20% are taxable, the remaining 80% are tax-free; 
  4. Cyprus is strategically positioned between the emerging markets of the Far East and Africa and the developed economies of Western Europe; 
  5. The country has well-developed communication and transportation infrastructure; 
  6. Cyprus has a sound legal system based on English law; 
  7. The jurisdiction is one of the most profitable EU jurisdictions for ICOs, thanks to its legal framework and flexible tax laws; 
  8. Cyprus has signed DTAs with more than 50 countries, including the United Kingdom, the United States, China, Russia, India, Germany, France, Switzerland, South Africa, Singapore, etc. 

Remote Company Registration 

Company registration in Cyprus with Clevver hand is a step-by-step and clearly structured procedure. We are professionals and everyone who turns to us for help can be confident in the highest quality of services provided and the best timing of the task. Formation of your company in Cyprus does not require personal presence, Clevver experts will do everything remotely and provide the necessary documentation in digital access. 

APPLY TO US TO RECEIVE: 

  • The assistance of the specialists of the highest level;  
  • The remote support from Clevver;  
  • A comprehensive package of documents on the company formation that can be assessed digitally;  
  • Possibility to receive many extra to business incorporation services in Cyprus (registered address, mail-handling service, a local phone number, and many more);
  • Quick processing for the business incorporation service;  
  • Consistent customer support and individual approach to each client. 

Bottom Line 

Cyprus is an attractive place to do business. One of the decisive factors that have played a role in this is Cyprus' business-friendly tax system, which offers many advantages to companies located in the country. 

With Clevver's assistance, an established company in Cyprus will start working faster and become an effective tool for international business. Contact us today!

DISCLOSURE NOTICE: Any legal or tax information in this communication (including any attachments) is for information purposes only and not intended to be used as tax or legal advice. The author is neither an Accountant nor a Lawyer and cannot be made liable. Please, contact your tax accountant or ClevverLegalServices LLP for individual consultation.