CYPRUS TAX PLANNING AND TAX OPTIMIZATION

CORPORATE TAX STRUCTURING

Corporate Tax Structuring and Cyprus Tax Planning

Our team of professionals can provide tax consultation on international tax issues and select the most effective vehicle(s) for our clients in order to achieve tax minimization. By identifying the relevant local law considerations we can assist in structuring cross border investments and acquisitions, establish holding corporate structures, repatriation and exit planning.

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CYPRUS TAX PLANNING

Cyprus has been highly advantageous as far as the corporate sector is concerned. It boasts of maintaining the lowest corporate taxation rate at 12.5% since its EU membership in 2004. It also prides itself in having double taxation agreements with 45 countries. Due to Cyprus’s low tax jurisdiction, it has received great recognition for offshore company formation.

Legal advice on corporate matters in Cyprus may also be provided by Oxford, since we maintain in house highly experienced corporate lawyers.

CYPRUS TAX SYSTEM KEY BENEFITS

  • very low corporation tax at a standard rate of 12.5%;
  • exemption from tax on dividends received from overseas (conditions apply);
  • payments of dividends, interest and royalties to non residents are not subject to any withholding tax;
  • profits from dealing in securities and also capital gains from the sale of movable asset is tax free;
  • Group relief is available;
  • Company redomiciliation is tax free;
  • No thin Capitalisation rules;
  • Extensive Double Tax Treaty network;
  • Applicability of EU Directives;
  • No capital duty of issuance of shares at a premium;
  • No Control Foreign Company (CFC) rules.

CYPRUS IS IDEAL AND COMMONLY USED FOR:

  • International Holding Structures;
  • IP / Royalty Companies;
  • Financing Companies;
  • International Trust Structures;
  • Investment Companies;
  • Trading Companies;
  • International Collective Investment Schemes (ICIS).

CYPRUS AS A BASE FOR INTERNATIONAL TAX PLANNING

Investors and professional advisors often use Cyprus as an investment vehicle in order to maximise after tax return on worldwide investments. Such income, deriving from investment activities through Cyprus, shall avail from the provisions of Cyprus tax system and treaty network. Some of the most favourable investment activities which are ideally suited to Cyprus tax environment is the use of holding companies, royalty companies, finance companies and investment funds.

For more information please visit: Cyprus Tax page.