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Cyprus Companies

January 15th, 2012 · No Comments

If you are considering ways to avoid the high taxation rates levied on businesses in the United Kingdom, offshore company formation provides a means to incorporate your new company. Cyprus companies, in particular, provide wide ranging double taxation treaties with a number of European and Eastern European countries. Although company records will be made available in the public domain, nominee director and shareholder services are available for use in the Cyprus companies’ formation procedure. Very favourable income and personal tax rates apply in Cyprus, and the corporate tax rate is only 10%.

Most people establish their business in offshore locations to benefit from the savings in tax liability. It is reasonable to assume that corporation taxation will be much lower than in the UK, with some jurisdictions offering complete immunity from corporation tax. Ensure that you register your business in a well known, experienced and reputable location, and you can benefit hugely from the legitimate savings in your chosen jurisdiction.

Incorporating in a Cyprus company provides you with the right to pay only 10% corporation tax. International Business Companies who operate outside the boundaries of the offshore location are entitled to complete tax exemption. Cyprus has become very desirable as a European tax haven because of the double taxation treaties with over 40 different countries all over Europe. Although the favourable corporation tax rates will save your company a lot of money, there are also other benefits from incorporating with Cyprus companies.

Owners and directors of Cyprus companies will also qualify for excellent personal taxation rates. Each person will be entitled to a €19,500 exemption rate. Pensioners pay 5% income tax and other people will be charged between 20% and 30%. Any dividends, share sales and 50% of the earned interest income via the company will be tax exempt. To qualify for these favourable advantages, you must hold your company meetings locally and have a local address. Cyprus is popular as it is only four hours by air from the UK, and its transport links are excellent.

When you form a Cyprus company, you can enjoy a lucrative means of incorporating an International Business Company. Cyprus companies have become more and more popular due to the double taxation treaties with many European countries, including Eastern Europe. Its robust reputation has attracted a key list of employers and businesses which have incorporated on the island. 

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