Extensive Tax Optimising Opportunities for Cypriot Companies
Cyprus offers substantial advantages for corporations established and managed there.
- In addition, establishing a company in Cyprus provides a number of residence and work permit options for non-EU individuals to move to Cyprus.
Cyprus is a very attractive proposition for non-EU individuals seeking to establish a personal and/or corporate base within the EU.
Attractive Tax Benefits
We are seeing an explosion of interest in the tax benefits available to Cyprus tax resident companies and individuals.
Sophisticated international financial centres such as Switzerland are amongst the countries with clients recognising the opportunities presented by Cypriot companies.
Corporate Tax Benefits Available in Cyprus
- Cyprus companies enjoy a 12.5% rate of tax on trading
- Cyprus companies enjoy a zero rate of capital gains tax (with one exception)
- Notional Interest Deduction can substantially reduce corporate tax further
- There is an attractive tax deduction for Research and Development expenses
Starting a Business in Cyprus as a Means of Relocation for Non-EU Nationals
Cyprus is an attractive jurisdiction for trading and holding companies and offers a number of tax incentives, as detailed above.
To encourage new business to the island, Cyprus offers two temporary visa routes as a means for individuals to live and work in Cyprus:
- Establishing a Cyprus Foreign Investment Company (FIC)
Individuals can establish an international company which can employ non-EU nationals in Cyprus. Such a company can obtain work permits for relevant employees, and residence permits for them and their family members. A key advantage is that after seven years, third country nationals can apply for Cyprus Citizenship.
- Establishment of a Small/Medium Size Innovative Enterprise (Start-up Visa)
This scheme allows entrepreneurs, individuals and/or teams of people, from countries outside the EU and outside the EEA, to enter, reside and work in Cyprus. They must establish, operate, and develop a start-up business, in Cyprus. This visa is available for one year, with the option to renew for another year.
Dixcart is experienced in providing advice regarding the tax benefits available to companies established in Cyprus and assisting with their establishment and management. We can also assist with the relocation of corporate owners and/or employees.