Fast Company Formations in Cyprus - Interesting facts and general conditions
Why are company formations in Cyprus preferable? Cyprus has a lot to offer. Apart from fantastic weather (with 340 sunny days a year), the tax framework in Cyprus is highly competitive.
Furthermore, if living in a hot spot is not required, one can enjoy a reasonable cost of living and low housing costs. Hence, numerous international companies are already doing business in and from Cyprus, and more entrepreneurs are setting up branches and subsidiaries on the Mediterranean island.
After years of turmoil, the banking sector fully recovered, and newly formed companies are likely to obtain bank accounts at local banks or international banks, unlike in Malta.
Our experienced and highly qualified international tax and legal advisors will explain the benefits of setting up a new company in Cyprus, review your existing company structure and management, or review and advise on mandate contracts. We also offer a review of your contractual arrangements at home and abroad. Additionally, our tax and accounting department will be pleased to handle your bookkeeping and tax returns.
Why not work with us – we offer company formations in Cyprus at a fixed price of € 2,850.00 net, all-inclusive. Enjoy our fast, reliable, and competent approach in your native language (German, English, French, Italian, Spanish, Greek, Czech, and Slovak).
Ideal Tax Framework for Holding Companies and Businesses
Before the Republic of Cyprus joined the European Union, Cyprus abolished the former “offshore” regulations. Thus, the Cypriot legislation fulfills all relevant EU standards, EU regulations, OECD standards, the FATF, and the FSF.
Cypriot companies are recognized throughout the European Union as EU companies with an extensive Network of Tax Treaties. This circumstance is used mainly by holding companies. Cyprus currently has one of the most favorable Tax Regimes. It competes within the EU with Ireland, Malta, the Netherlands, and Luxembourg, offering a split of costs or a non-EU jurisdiction, such as the UK. A new company is ideal for starting a business in a highly competitive environment.
Why not speak to us about the advantages of a holding structure with a new company in Cyprus?
What you need to consider
A long-term stay in a country for more than 183 days will usually (and automatically lead to an unlimited tax liability for your worldwide income. Some countries go even further and already assign this tax liability if you can permanently use your apartment (this can even be the room in your parents’ house or a regularly visited hotel), which you can access with your keys – known as “Schlüsselgewalt” in German-speaking countries. This rule establishes or maintains an unlimited Tax liability for your worldwide income. If this subject interests you, you may learn more about it on our dedicated website for Taxation.
However, a tax residency in Cyprus is granted to non-domiciliaries if they stay in the country for at least 60 days each calendar year. This fact offers ample opportunities and is a significant advantage over other jurisdictions, whereas a minimum stay of 183 days is typically required.
Especially for Digital Nomads, Cyprus is a fantastic place to stay, offering a safe environment within the EU while keeping all doors open for extended travel. One can’t stay in any other (EU-) country for more than 183 days, as this would trigger a tax residency there. There are some exceptions we will discuss in a meeting.
Setting up a company in Cyprus is a straightforward process. The real challenge lies in establishing an unassailable tax residence for both the company and its founder. Relocation may sound simple, but it is by no means as easy as moving to a new country. German-speaking countries in particular are familiar with the taxation of hidden reserves and exit taxation.
Once you have overcome these problem areas, the next hurdle awaits you: opening a bank account. You probably cannot imagine how many founders in Cyprus, Malta, and Ireland are stuck with a useless company without a bank account. Please don’t listen to rumors; instead, contact us directly. We will tell you straight up whether it can work for you or not. That’s a promise.
If you have plans for company formations in Cyprus, be sure to speak with us first to avoid costly mistakes. We can help you determine if a relocation is a good fit. Our Tax Experts and corporate finance experts at TAXEDO LLP will find a sophisticated solution.
TOP Jurisdiction for EU-Residence
Cyprus, however, offers ideal conditions for a tax residence because, unlike Malta or Ireland, a stay of just 60 days is sufficient to obtain tax residence in Cyprus.
Of course, you cannot stay in any other country for more than 183 days, which would trigger an unlimited tax liability there. This concept is, therefore, ideal for everyone who can live and work flexibly (e.g., digital nomads). A different concept is required if you like extended travel, being broad for months.
You can rely on well-founded and legally sound advice if you come to us. Together, we will find your ideal life concept.
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