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Creating an offshore company in Cyprus

Despite various changes to the law, companies in Cyprus remains a suitable choice for offshore outsourcing.

Cyprus is situated to the south of Turkey, and around 300 km west of Israel. The island has a population of just over 800,000 inhabitants. Cyprus has been a full member state of the European Union since 2004, and its official currency has been the EURO since 2008. Greek and English are the most commonly spoken languages.

The Cypriot government strongly encourages economic growth, and the country is continuing to enjoy positive levels of growth thanks to its desire to maintain attractive rates of taxation. The number of newly created companies is growing at an exceptionally high rate.

Because of its numerous treaties and tax savings (dividends, royalties, interest…), Cyprus is also widely used as an area of jurisdiction for overseas finance and investment. For example, the largest overseas investor in Cyprus is Russia.

 

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Creating a company in Cyprus will offer you the following advantages:

Creating an offshore holding company: intermediate holding companies provide a good way to optimise taxes

A company may wish to invest in a country without a tax treaty within its own country of residence. Taxes on this investment can have a detrimental effect.

Under these circumstances, the intermediary offshore holding company may be perfectly well established in an area of jurisdiction which has favourable bilateral tax treaties and has been incorporated between the two countries in question.

For example, Cyprus has signed a series of bilateral agreements with countries in Eastern Europe, and countries belonging to the former USSR. This is why the Cypriot jurisdiction is frequently used by entrepreneurs who wish to invest in these countries as a result of their favourable tax systems.

The cost: