Redomiciling a foreign company and relocating persons to Cyprus
Cyprus is a jurisdiction that allows for company redomiciliation. This essentially involves moving a company’s registered seat from one jurisdiction to another.
As a result, ‘converting’ a foreign company to a Cyprus company allows it to continue operations uninterrupted – and to function from a fully compliant European base, having access to all of the advantages and benefits of an EU company.
While shifting a foreign company’s base and management and control to Cyprus, the company can operate with proper relevant substance under the very attractive, cost competitive and beneficial Cyprus corporate, tax and legal frameworks.
Some of the benefits include:
- Jurisdiction: Cyprus is a long established and tested International Business Centre with a straightforward, competitive, and appealing tax structure for international investors. When combined with the island’s strategic geographical location, excellent infrastructure and high quality of professional services, the use of Cyprus companies is efficient and practical not only for business activities within Cyprus, but also for international transactions.
- Relocation of persons: Relocating key personnel to Cyprus for employment by the Cyprus Company is very practical, efficient, and offers a variety of tax advantages. Cyprus tax residency is determined either through the 183 days rule or the newly introduced 60 days rule (subject to conditions). Furthermore, foreigners who become Cyprus tax residents are instantly treated as non-domiciled for Cyprus tax purposes, which is particularly advantageous and appealing to high-net-worth individuals.
- Tax: Attractive 12.5% uniform corporate income tax rate, with the effective tax significantly lower, or even zero, due to favourable tax laws that exempt certain incomes entirely or partially from tax. There is a large network of double tax treaties in place, as well as access to applicable EU Directives. Furthermore, there is no withholding tax on payments made to non-Cyprus resident corporations or people (dividends, interest, royalties).
For more information please contact us.
