Republic of Cyprus is an island State of 1 300 000 inhabitants located at the eastern extremity of the Mediterranean Sea. Its politics are very complex, since it is divided into three blocks: the Republic of Cyprus, the Turkish Republic of Northern Cyprus and the British sector. Although located outside Europe, the country is part of the European Union.
Taxation in Cyprus by Fidusuisse
Cypriot companies are taxed at a rate of 10% and 20% for a company’s immovable property assets. Moreover, certain actions are not subject to tax, such as the sale of immovable property and income from interest and dividends.
There is also a 15% sales tax (VAT). This rate is reduced to 8% for hotel services, taxis and buses, and 5% for gas, newspapers, books and pharmaceutical products. More detailed information, provided by Fidusuisse Offshore, about taxation in this country.
The tax year in country extends from 1 January to 31 December, and European Union accounting standards apply, together with international accounting standards.
Cyprus is strongly discouraged for import-export operations in Europe because, given that the country is an island, products cannot pass through it in transit. Tax services still require transport documents. For any other activity, this country is a destination of choice.
Cyprus has signed the Basel Convention on hazardous waste and the International Coffee Agreement 2001. Since Cyprus is part of the European Union, the customs rules of the EU are applied on Cypriot territory.
Specific licenses are required to import goods into the country and the control of imports is stricter for some products, especially agricultural ones. If the merchandise arrives from a Member State of the European Union, Cypriot customs tariffs are void. On the other hand, products from foreign countries are taxed differently depending on their nature, but still at relatively low rates.
The rules of the Common Customs Tariff of the European Union apply. At the administrative level, an import declaration must be completed, as well as a goods exchange declaration or an Intrastat, for trade within the European Community. An Entry Summary Declaration may also be requested.
Minimum monthly salary - 700 Euros. The right to work in the country is based on the British standards in the Terminator Law (1967), which protects employees from unfair dismissal but which is, on the whole, more permissive than European law.
Creating a Company
Fidusuisse offshore company has many advantages: among other things, it enables assets to be protected by consolidating assets held in several countries under the name of an offshore holding company. The legislation of the country where the holding company is based will apply to all assets in the event of death. It is also possible to transfer assets to this offshore company to avoid problems (confiscation, commercial litigation, disputes, etc.): this is the principle of Asset Protection.
A Ready-Made Company or Shelf company is a pre-registered company that is ready to start operations. Choosing a Ready-Made at Fidusuisse company reduces the time it takes to setup a company in the country. A Ready Made company is a new company, whereas a Shelf company has existed for at least one year, which makes it possible to benefit from enhanced commercial credibility.
At Fidusuisse we handle your bank account opening in Cyprus, so there is nothing you can worry about. Whether for private account of offshore accounts within 15 days including the bank relationship, filing of forms and liaising with the bank.
Fidusuisse Offshore offers you a virtual office service allowing you to create real credibility and become a commercial reality. You will be able to conduct your offshore company’s business in the most effective way.
The importance of a virtual office
When you create an offshore company, it is essential to have a phone number in your destination country. It provides real credibility and promotes confidence in your business transactions with your clients. Fidusuisse Offshore can provide you with a telephone number for any country in the world and even offers you a telephone to manage your business.
Company Management is a service aimed at persons not wishing to have to manage their business on a daily basis and who wish to entirely delegate the management. Under a contract regulated by Swiss law, we manage the company on your instructions, maintaining commercial relationships, orders, regulations, accounting, audit and annual reports.
International contracting is frequently used by offshore companies to facilitate transactions with foreign partners. In fact, this method makes it possible to solve logistical and fiscal constraints applicable to transactions.
Trusts and foundations
The advantage of a Trust is that it optimises tax benefits for the Settlor’s assets, in accordance with the tax laws of the country in which the Trust is registered, while the Settlor can reside in another country. It is also useful for transferring assets while avoiding taxation, and in determining the assets owned by several companies.
Fidusuisse Offshore can provide you with the expertise necessary to set up your Foundation. A foundation makes it easier to manage your affairs. This structure can be created in most countries, and fully customized through the use of By-Laws.
Fidusuisse Offshore is putting its experience and expertise at your disposal so that you can successfully carry off your fiscal expatriation plans. Our main destinations are Belgium and Switzerland.
Contact Fidusuisse Contact
ServicesBanking Services Company Formation Corporate Services Trust Management
CoverageBelize British Virgin Islands Canada Cyprus Dubai Hong Kong Latvia Luxembourg Malta Ras Al Khaimah Switzerland United Kingdom
118, Rue du Rhône
1204 – Geneva, Switzerland
Tel: + 41 22 518 03 40
Fax: + 41 22 518 07 84
79, Avenue de la Toison d’Or
1050 – Brussels,
Tel: + 32 2 400 78 00
Fax: + 32 2 808 64 71
The Lee Gardens,
33 Hysan Avenue,
Causeway Bay, Hong Kong
Tel: + 852 580 80 599
Fax: + 852 580 80 582
Sterling Tower, 10th Floor,
14, Poudriere Street,
Port Louis, Mauritius
Tel: +41 22 518 20 19