CYPRUS
16590
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CYPRUS

CYPRUS

TAX PLANNING JURISDICTION

The Republic of Cyprus is an island located in the eastern Mediterranean Sea located off the coast of Turkey but ethnically and culturally predominantly Greek. It should be noted that there is also North Cyprus which is not internationally recognised and is predominantly ethnically and culturally Turkish. The legal system is a hybrid of civil and common law but for business and company purposes, it is the common law system that is paramount. Unlike Greece, for historical reasons English is widely spoken and used in business. Most importantly, Cyprus is a full member of the EU, uses the Euro, has an extensive tax treaty network and enjoys the lowest OECD permissible corporate tax rate of 15%.

 

Population: 1,358,000 (2024)

 

Size: 9,251 sq.km (combined)

 

Capital: Nicosia

 

Economy: Although located in a volatile region, Cyprus itself is a stable jurisdiction expecting growth of 2.4% in 2026. Apart from tourism and agriculture the services sector is a vital part of the economy and is supported by a large number of specialist firms offering company registration and management/accountancy services.

TAXATION – WHY & FOR WHOM?

Why? Notwithstanding the banking and financial crises that hit Cyprus after the 2008 Economic Crash, it has successfully rebounded and now enjoys a much more stable economic environment. Unlike Ireland, it is not anticipated that Cyprus will specifically gain from the UK’s departure from the EU but nonetheless it’s liberal corporate and capital gains tax policies together with its continued full membership of the EU will offer many attractions especially for the smaller more cost sensitive client.

The advantages of using a Cypriot company are many but include:

  • Lack of bureaucracy – Its historic connection with the UK has ensured that Cyprus has far less bureaucracy than that of most continental countries.
  • Ready Made Companies are available quickly or Own Name Companies in around 8-12 weeks.
  • English is the main business language of Cyprus.
  • The Cypriot common law system is almost the same as that of the UK and is therefore considered to be much more business friendly than the slow and codified civil law system in Continental Europe.
  • Cyprus, like Ireland fully benefits from EU Directives and Regulations.
  • The Corporate Tax rate is 15 %.
  • Capital Gains Tax generally only applies to Cyprus property and assets and not on the sale of international assets and/or shares.
  • Individual taxation can be very advantageous for foreign residents.

For Whom? Cyprus is ideal as a holding/investing and/or trading location especially for smaller and online business activities. Where required SCF can provide a full range of management and control services without the inherent costs associated with opening up an office in Cyprus.

CYPRUS MANAGED COMPANIES

Synopsis

Cyprus is divided into two parts; the first is the internationally recognized southern half of the island, which is ethnically Greek dominated whilst both native Turkish Cypriots and immigrants from mainland Turkey populate the northern second half of the Island. This information refers to the Greek part of the Island. The benefit of Cypriot managed companies is that they provide both protection against other countries anti- avoidance provisions and still benefit from the 15% corporate tax rate. Due to its size and location, Cyprus is not a realistic competitor to the Republic of Ireland but in its specialist fields of exploiting its unique double taxation treaty network with Eastern Europe and its tax treaty with Ireland it is second to none. Cyprus is also one of the World’s major shipping registries not only for commercial vessels but now also for luxury yachts.

Ratings

Corporate registration efficiency
$3
Cost
$5
Confidentiality
$4
Local Banking facilities
$4
Legal system
$5
Political stability
$4
Reputation
$4

MANAGED CYPRIOT COMPANIES – The key benefit of Cypriot limited companies is that once they are properly managed and controlled in Cyprus, they will benefit from the indigenous corporate tax rates of only 15% plus an excellent double taxation treaty network with Eastern Europe inherited from their pre-European Union membership days. In addition, Cyprus offers excellent merchant naval registration facilities and in fact has one of the largest merchant navies in Europe.

WHY REGISTER A CYPRIOT MANAGED COMPANY?

Benefits:

  • Pro-business environment
  • EU Member State benefiting from all EU Directives
  • Standard VAT Rate of 19% (There are however lower rates for certain services and goods)
  • Highly developed corporate and general law.
  • Good communications.
  • Active and positive member of the European Union.
  • The Euro is the local currency
  • Partnerships can be used to further mitigate tax
  • Excellent double taxation treaty network.
  • Highly educated population
  • Major merchant naval jurisdiction

ADMINISTRATION & ACCOUNTANCY SERVICES

Managed Cypriot Companies

SCF and its agents can act as the daily legal and accountancy administrators, liaise on your behalf with the Revenue, Cypriot Company House, maintain the registered office, company minutes and in fact do everything necessary to provide you with a fully functional VAT registered Cypriot company including quarterly VAT returns, online banking, management and meeting rooms etc. – In fact, our Cypriot services are totally bespoke according to your needs.

Our Range of Fully Managed Company Services

  • The appointment of a qualified accountant to act as Company Secretary
  • The opening up of a bank account for your company with access provisions agreed by SCF, the bank and of course the beneficial owners
  • A Full Management Agreement setting out the rights and obligations of all parties
  • The provision of a Cypriot registered office address for service of process and official mail
  • The application and obtaining of a Cypriot VAT number for your company
  • The maintenance of all requisite company minutes, ongoing companies’ registration office submissions, annual returns and AGM preparation
  • The annual submission of the Annual Assessment of Tax Form
  • The management of the company’s VAT submissions, payments and VAT reclamations on a monthly or quarterly basis
  • The maintenance of the company’s accounts supported by a quarterly ready for the submission to the Revenue Commissioners including the corporate tax calculation.
  • Accountancy will be maintained in either SAGE or Quick Books format
  • The appointment, if required or appropriate, of auditors
  • Advice on general Cypriot tax mitigation and the company’s maintenance by a dedicated company accountant