The Role of Cyprus Offshore Company: What is it all about?

Although the term Cyprus Offshore Company has been the popular phrase to refer to IBC company registered in Cyprus, this does not imply that its trading power is limited offshore. IBC has power to trade inland and it is greatly encouraged by the country; however, many business owners find it more appealing to proceed with offshore trading opportunities because of the huge tax benefits the Government has laid for them. It is too tempting not to expand business especially if there is a promise of no more than 10% on corporate tax and zero capital gains tax on properties purchased and sold outside of the region. Nevertheless, these are only some of the reasons why more companies have gained interest in establishing and registering a company in Cyprus.

Distinguishing a Tax Resident Cyprus Offshore Company from a Non Tax Resident Cyprus Offshore Company

Any IBC company that has a Cypriot Secretary and Director that are mostly Cyprus Tax Residents, Registered Office in Cyprus, with the addition that all major decisions are taken in Cyprus is to be considered a Tax Resident Cyprus Offshore Company. As part of its benefit, it will enjoy the low corporate tax rate of 10% including the benefits it will gain from its Double Tax Treatis. On the other hand, if a company registered in Cyprus has list of Directors that are mostly non-Cypriots and its board meetings are held outside of the country’s jurisdiction then it is classified as a Non-Resident Cyprus Offshore Company. It is not required to pay the Cyprus Corporate Tax, but will be required to pay rental income for any permanent establishment in the region. It is the perfect choice for those who wish to buy and sell in a worldwide market because all of these profits will be exempt from taxation in Cyprus. Any interests that will be received through its affiliate Cyprus bank will not suffer from any deductions and automatic VAT registration, as part of the European Union Council. The only disadvantage is its inability to take benefit in the Double Tax Treaties entered upon by the Cypriot Government.


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Trading Advantages of Cyprus Offshore Put Into the Scenario

If you fail to picture the benefits a Cyprus Offshore Company will do to your business, then putting it into the scenario will help you understand its advantages. Once you register an IBC in Cyprus, the profits you gain from existing countries wherein Cyprus entered Double Tax Treaties can be repatriated back to your country without the need to pay additional taxes. Special Defense Tax is waived and dividend income tax is exempted, leaving you with only 10% of corporate tax to pay to the government. Incidentally, if you gain profit from trading securities the Government implements 0% corporate tax with no other Cyprus tax imposed.

Use of terminologies is only for technical considerations. Your legal and financial advisers can assist you in clarifying these terms. They are also helpful in assisting you with the registration process. Be sure to sit with them prior to fulfilling the requirements of the Cypriot Government. Choose the best type of IBC for your purpose and enjoy the benefits it will bring your company’s future growth and development.

Oxford Tax Solutions has been offering Cyprus Offshore Solutions to a many businesses in the past years. These companies placed their trust and confidence in the company because of the high quality of service and professionalism it provides.

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