Cyprus is indeed included amongst the jurisdictions which allow re‐domiciliation in and out of Cyprus, therefore foreign corporate migration into Cyprus is being considered as a very beneficial solution for the company’s operations.
While shifting its base and its management and control to Cyprus, the company can operate with proper relevant substance under the very attractive, cost competitive and beneficial Cyprus corporate, tax and legal frameworks.
Some of the benefits of doing that are set out below:
Tax: Low 12.5% uniform corporate income tax rate, with the effective tax much lower, or even zero, because of favorable tax provisions that wholly or partly exempt from tax certain incomes. A wide double tax treaty network that includes most beneficial treaties with certain non-EU countries like Russia, Ukraine, India and South Africa. Access to benefits of relevant EU Directives. Unilateral tax relief for foreign tax suffered. No withholding tax on outgoing payments (dividends, interest, royalties) to non-Cyprus resident companies or individuals.
Jurisdiction: Cyprus is a long established and tested International Business Centre with a simple, competitive and attractive tax regime for foreign investors. Combined with the island’s strategic geographical location as well as its advanced infrastructure, business oriented environment and high level of professional services, the use of Cyprus companies is efficient and practical not only for business activities within Cyprus but also for international transactions.
Base: The company, upon redomiciliation, will have a European base, therefore it will enjoy all the advantages and benefits of an EU company.
Continuity: The migrated company can simply continue its operations in Cyprus without any interruptions.
You may see an outline visual review of the various efficient uses of a Cyprus company in international tax structuring by clicking here.
For further assistance and information on how to redomicile your company into Cyprus, please liaise with our Head of Corporate and Banking operations, Melina Dionysiou at [email protected].