- What are the Companies Tax
rates and personal income tax rates in Cyprus?
Companies in Cyprus are taxed on their net profits i.e. sales less expenses at a rate of 12.5%
Individuals being tax residents in Cyprus are taxed as follows:
Income for the underlying tax year
EuroTax Rate
%From 0 to 19.500 0 From 19.501 to 28. 000 20 From 28.001 to 36.300 25 From 36.301 to 60.000 30 Over 60.000 35 - What is the time frame to
open a Company in Cyprus?
It needs to be noted that 3-5 days are needed for the name application approval.
Upon that the Registrar of Companies will need another 5-6 working days to incorporate the Cyprus Company. - Do the beneficial owners need
to visit Cyprus for the incorporation of the Cyprus
Company?
No it is not necessary for the beneficial shareholder to visit Cyprus at any stage of the Company incorporation unless they want to do so themselves. - What is a "nominee
Director"?
Nominee Directors can be either legal or natural persons who are used when clients want to keep their anonymity since all Company documents are open to the public via the Registrar of Companies. - What is a "nominee
Shareholder"?
Same with nominee Directors, nominee Shareholders can be either legal or natural persons who are used when clients want to keep their anonymity since all Company documents are open to the public via the Registrar of Companies. - What is a registered
office?
As per law requirement a Cyprus Company needs to have its Registered Address in Cyprus. Our firm shall provide you with the above. - Do you need licenses in
Cyprus for your Company's activities?
Yes. There are certain activities like banking and financial institutions. Furthermore, hotels and restaurants who intent to operate in the Republic of Cyprus will also require special licenses to be obtained. - What are the annual
requirements of a Cyprus Company?
A Cyprus Company is subject to an Annual Levy of Euro 350 payable to the Registrar of Companies, and is obliged to submit on a yearly basis Audited Financial Statements to the Income Tax Office. Moreover, an Annual Return with the audited financial statements must be submitted with the Registrar of Companies. - What is the procedure of
opening a bank account in Cyprus?
There is no fixed procedure when opening a bank account. Each banking institution has its own procedures and requirements regarding the know-your-client and documentation requested. - How many days are needed to
open a bank account in Cyprus?
It will take between 2-3 weeks to open e a bank account in Cyprus as long as all documents requested are in place as per bank requirements. - Upon completion of the
Company incorporation what other factors should I
consider?
The Company should upon incorporation:
- Obtain a Tax Number by the Cyprus Tax Authorities
- Assess whether is needed to register for a V.A.T. number
- Assess if Company will be required to register with the Social Insurance authorities in Cyprus
- When incorporating a Cyprus
Company should someone opt for the Cyprus Resident
Company?
Yes. The Company will benefit from the low tax rate of 12.5% and at the same time via the numerous Double Tax Treaties and unilateral Tax credits allowing it for a successful tax plan implementation. - If someone opts for a
non-resident Cyprus Company what will be the impact on the
Company?
The Company will not be subject to Tax in the Republic of Cyprus and as a natural course of effect it will not be able to benefit from the numerous tax treaties Cyprus has entered with various countries.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.