As such, ‘converting’ a foreign company to a Cyprus company, allows it to continue its operations without any interruptions - and to operate from a fully compliant European base, thus having access to all the advantages and benefits of an EU company.
While shifting a foreign company’s base and management and control to Cyprus (or even by incorporating a new Cyprus company), the company can operate with proper relevant substance under the very attractive, cost competitive and beneficial Cyprus corporate, tax and legal frameworks.
Further, relocating key staff or other persons (both EU and non-EU) to the island is possible and very beneficial.
Some of the benefits include:
- 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, 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.
- Relocation of persons: Relocation of key staff (with or without their families) to Cyprus for employment by the Cyprus company is very practical, efficient and with various tax attractive benefits. Cyprus tax residency is determined either through the standard 183 days test or the newly introduced 60 days route (subject to conditions). Further, foreigners who become Cyprus tax residents are automatically considered as non-domicile (non-doms) for Cyprus tax purposes, with this being very beneficial and attractive for high net worth individuals.
- Tax: Attractive 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 certain incomes from tax. There is a wide double tax treaty network and access to relevant EU Directives. Further, there is no withholding tax on outgoing payments (dividends, interest, royalties) to non-Cyprus resident companies or individuals.
Totalserve Group can fully assist with all of the above and other related services.
For further assistance and information, please liaise with our CEO, Petros Rialas at [email protected]