Cyprus: Interesting developments for International Tax Planning for both Companies and Individuals
For more information, please contact Charoula Mesaritis at firstname.lastname@example.org
Charoula Mesaritis discusses the latest developments that Cyprus can offer international business and high net worth individuals
At the UHY International Annual Meeting in Paris, France, Charoula Mesaritis, Manager of Tax & Corporate Services at UHY Cyprus (our local associated licensed audit firm, an independent member of UHY International), made a very useful contribution to the Tax Session in a presentation which illustrated both the long established benefits that Cyprus offers for international tax planning for corporate entities and groups, as well as introducing some very interesting recent developments which are of benefit to individuals.
Charoula explained that the tax system of Cyprus is in full compliance with EU requirements and also within the OECD requirements against harmful tax practices. The Cyprus Holding Company is a well established regime that has been around for the last 15 years and which has proved to be very popular and successful. Although there is no legal definition of a Cyprus Holding Company, liberal interpretation allows a combination of activities to be carried out by companies which also act as vehicles for holding investments in group and other companies.
“In a nutshell, the income from activities arising from the Role of a Cyprus holding company is essentially tax free in Cyprus” explains Charoula (pictured). “Furthermore, Cyprus has concluded over 60 double tax treaties with other jurisdictions worldwide, and with corporate income tax on other income at one of lowest in Europe at 12.5%, this makes for Interesting possibilities for international tax planning structures using Cyprus”
Charoula was also keen to emphasize two recent developments which make Cyprus very attractive for individuals :
– Non Domiciled Tax Residents
– 60 day rule for Tax Residents (alternative to 183 days – subject to conditions) making establishing tax residency in Cyprus much easier.
“It is also worth mentioning that other recently introduced schemes offering Permanent Immigration Permits (Residence) by Investment and Cypriot Citizenship by Investment, combined with the recent changes relating to non-domiciled tax residents, offer a fantastic opportunity to individuals seeking to reduce their tax on worldwide income”
The contents of this publication should be considered to be of a general nature only not referring to any particular business. Before proceeding with any action, please request further advice relating specifically to your business. We will be very pleased to be of assistance.