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Why do they always choose Cyprus?

Mar 07, 2017

Many business founders who are thinking about starting their business offshore have been considering Cyprus. This country is a first thought for most people when hearing the word “offshore”. Offshorelicense Ltd is ready to help you understand why this island is so popular amongst company founders and whether you should choose it too. There is a thought that business in Cyprus is popular because of their taxation. We are not going to bust this myth but it still needs to be analyzed deeper. Let us look at the different reasons to choose Cyprus as an offshore country.

Basically, the biggest advantage of Cyprus is exactly its tax policy. It has become most popular after 2004th, when it joined the EU. After changing tax legislation, Cyprus became a country which is located the nearest from the Europe and, at the same time, has the lowest tax rates, especially for corporate incoming tax. Businesses connected with royalties, finance or trading are choosing this offshore jurisdiction more and more often. Main advantage of such taxation is business having opportunity to reduce operating costs. Lowering taxation, especially social insurance and other employee contributions, helps business to pay more attention to production of goods or services, therefore providing customers with more reasonable pricing.

In our previous article we have already mentioned treaty and non-treaty taxations for business that need to be taken into account when starting business offshore. Cyprus has an exceptional treaty network, which allows companies use it in its advantage. It also includes Permanent Establishment rules and provisions that are attractive and beneficial for business.

Talking about banking system, Cyprus jurisdiction also is on a high level. Offshorelicense Ltd specialists are ready to help you analyze banking facilities in Cyprus and select the one most suitable for your company. Depending on your needs you can use investment, financial, retail banking and choose between loan types, management variations and other services. This means that companies with different needs, specializations and requests can find the bank for their purpose.

When Offshorelicense Ltd customers want to start business in Cyprus or relocate existing company, they are always interested in human resource availability in that jurisdiction. And this brings us to the next advantage of the Cyprus as an offshore jurisdiction. First of all, Cyprus is a multilingual country and there is a strong community of professionals with whom you can communicate easily. Highly educated accountants, lawyers, bankers and other financial and legal specialists are ready to assist your business. Also, we help our customers find various platforms for hiring workers. Cyprus allows you to choose between professionals in different branches who are ready to work for international company.

When you are thinking on starting an investment company and locating it on Cyprus, there is a possibility to use advantages of special Cyprus investment firm license. It allows founders or CEOs of companies to use all taxation advantages for their business. For example, except for corporate income tax of 12,5% you will be able to avoid capital gains taxes on the disposal of securities, use double tax treaties for your company and also reduce to 0% (zero) tax on payments to international shareholders. These tax benefits are one more good reason to locate your investment company in Cyprus.

There are more reasons to choose Cyprus as a location for your international company. Offshorelicense Ltd specialists are ready to choose the most suitable jurisdiction for starting your business and, moreover, we are ready to share not only pros of the location but also the cons. This means, our customers can find best legal, financial, infrastructural and human resource support from our professionals.

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