Cyprus is an island in the Mediterranean Sea. Cyprus is a popular tourist destination which receives millions of visitors each year who flock to the white sand beaches to soak in the Mediterranean sun. Cyprus is one of several tax havens located in the European continent. An offshore jurisdiction Cyprus specializes in services such as the incorporation of offshore companies, offshore insurance, and the formation of Cyprus Trusts among other offshore services
Cyprus is a well developed country which is well sought after as an offshore tax haven. A member of the European Union Cyprus has strict laws in place to protect the offshore financial sector of the jurisdiction. Cyprus can be considered a low tax haven since the country has a low tax regime in place for offshore companies and resident companies. The tax haven of Cyprus is popular among European investors and businessmen.
A company incorporated in the tax haven of Cyprus can be called an International Business Company if all of its owners are foreigners to the country. Cyprus companies can be used for investment and as trading companies. The tax haven of Cyprus imposes the same tax rate for all companies incorporated in the jurisdiction. Companies in the low tax haven of Cyprus pay taxes worth 10% of their annual profits. There is no withholding tax applied to the payment of dividends in tax haven Cyprus. Cyprus also has no wealth tax.
The offshore tax haven of Cyprus is well known for offshore banking. The low tax environment of Cyprus allows for offshore bank accounts at many banking institutions on the island. There are no taxes applied to the interest earned by offshore bank accounts in the tax haven of Cyprus. Therefore offshore bank accounts in tax haven Cyprus is good for investments.
Cyprus International trusts have its advantages in tax haven Cyprus. The offshore tax haven allows for the formation of trusts; which will pay no taxes on income gained outside of the territory. Trust dividends and interest gained are tax free in the low tax haven Cyprus. Cyprus trusts are granted privacy. The names of the trust owners are not disclosed to the registrar and there is no need for Cyprus trusts to do financial reporting to any authority in tax haven Cyprus.
As a tax haven Cyprus is well regulated. Privacy is one of the features of all tax havens of the world. Cyprus has legislation in place to protect the privacy of offshore bank account holders, the owners of Cyprus trusts and Cyprus International Business Companies. Tax haven Cyprus has banking secrecy laws in place to protect the integrity of offshore bank accounts in the jurisdiction. The disclosure of information in Cyprus offshore bank accounts is prohibited and punishable by the law. Bank employees and other persons who are associated with Cyprus banks must take an oath of secrecy. This is a requirement of the Central bank of tax haven Cyprus.
Cyprus offshore companies or International Business companies are also awarded privacy per the companies’ legislation of offshore Cyprus. Company’s legislation allows for the registration of Cyprus offshore companies beneficial owners need not be filed with the Registrar of Companies. Company legislation allows for the incorporation of companies using nominee shareholders and directors. The names of the beneficial owners will remain private. In cases of criminal investigations into the operations of the offshore company then the names of beneficial owners might be released.
Offshore corporations in Cyprus are obligated to prepare annual accounting reports to the relevant authorities in the tax haven. Cyprus offshore companies are also expected to comply with the country’s laws an file its annual return which must be signed by the company secretary and director. It must be noted that tax haven Cyprus have signed double tax agreement with many foreign countries including the United States, France ,Sweden, China , Canada, and Demark among others. There is no exchange control in place for offshore trusts and offshore companies in the tax haven of Cyprus. This makes it easier to companies to engage in trade. The absence of exchange controls makes the tax haven of Cyprus favorable for the remittance of large sums of funds and also for the transfer of funds.
The low tax haven of Cyprus has favorable conditions which encourage the incorporation of offshore companies, trusts and the opening of offshore bank accounts in the jurisdiction. Offshore corporations and bank accounts can be established by persons of any nationality. The offshore jurisdiction laws of the tax haven are very strict but also allows for the formation of flexible offshore structures. One of the main factors which encourage people to go offshore is the tax savings from which they will benefit. Tax haven Cyprus provides clients with the opportunity to reduce on tax liabilities in a legal manner.