The Republic of Cyprus is an island tax haven situated in the eastern part of the Mediterranean Sea.
Cyprus is a member of both the European Union and the Eurozone.
The capital of Cyprus: Nicosia (Lefkosia)
Official language in Cyprus: Greek, Turkish
Cyprus Currency: EUR
Tax optimization through offshore companies is not appropriate for EU residents and therefore we do not provide services related to tax optimization.
Description and advantages of the Cyprus offhore
- The basic type of an offshore company in Cyprus is called Private Company Limited by Shares - a combination between a limited liability company and a joint stock company.
- The director and shareholder can be any non-resident, natural person or legal entity, the company must have a secretary for contact with local authorities. In case you want to benefit from tax arrangements of Cyprus, it is recommended to have a local citizen as a company director because of the tax residence of the company.
- Only registered shares are allowed.
- Accounting is required - companies must submit financial statements.
- Mandatory audit.
- The business register is publicly available – therefore, other offshore companies from Seychelles, Belize, Saint Vincent, and other tax havens are used as shareholders of the company, where there is a non-public Commercial Register.
- Cyprus has concluded an agreement for the avoidance of double taxation with the Czech Republic - which is one of its biggest advantages for tax optimization options.
- One of the lowest tax burdens in the EU.
- 0% tax on capital gains - on interest, transfer of shares, dividends, etc.
International agreements
International Convention against money laundering and terrorist financing
Cyprus has signed such agreements. The practical importance of these agreements for the company owner is mainly in the fact that, in case of suspected money laundering or financing of terrorism by a Cyprus company, its registration agent may provide personal data of persons participating in the company (in case of nominee services, beneficiary owners of the offshore company) and the basic description of its operations to higher authorities that may forward the case even to the Czech Republic.
Avoidance of double taxation agreement (DTA) with the Czech Republic
This contract is concluded. Direct payments from Czech Republic to Cyprus are subject to withholding taxes unless this international treaty states otherwise. Cyprus offshore company shall be, in cases defined by the international treaty, suitable for direct selling of goods or services in the Czech Republic. Agreement for the avoidance of double taxation between Cyprus and the Czech Republic is a very broad and convenient option for tax optimization.
Under this agreement, tax-relevant information is exchanged between the two countries - Czech Republic and Cyprus.
Agreement on the exchange of tax information with the Czech Republic
This agreement is not concluded.
Convention on Mutual Administrative Assistance in Tax Matters
This agreement is not concluded.
Convention for the avoidance of double taxation with other tax havens
Cyprus is one of the few European countries which have concluded agreements on avoidance of double taxation with other tax havens such as the Seychelles. Due to this fact it is possible to transfer the tax duty from Cyprus to the Seychelles, where there is zero income tax.
Common uses of Cypriot companies
- Trade in goods and services.
- Tax optimization due to the possibility of trading with other tax havens without withholding taxes.
- Lending and borrowing.
- Holding and leasing of intellectual property (patents, software, know-how, etc.).
- Holding and parent companies - zero tax on dividends from the sale of shares etc.
Establishing an offshore company in Cyprus
