Cyprus gaining popularity for low-tax business formation

24/08/2010

Cyprus has emerged as a leading destination for people who want a low-tax domain in which to register their businesses but who do not want to take them offshore.

The favourable rates of business tax and low-tax European company formation on the island nation mean that investors are able to gain good value for their money, while retaining the respectability and legitimacy of a European registered company.

Cyprus is the lowest-tax non-offshore jurisdiction in Europe - the standard corporate rate of tax for companies is just 10 per cent, which goes down to 0 per cent for shipping companies and 4.25 per cent for maritime management companies.

These make it an ideal venue for people who are limited from keeping their businesses in popular European offshore centres – including Lichtenstein, Luxembourg, Switzerland, Jersey and Guernsey – due to their other interests.

The process of registering a company in Cyprus is also attractively fast, with just a week needed for most companies and accounts to be in place. Special circumstances can even see some companies set up in as little as a day. International regard for Cyprus shapes it as a secure, investor-friendly, open, well-regulated and respected location for company registration.