Cyprus accounting offices and Cyprus non-Resident Companies

Cyprus accounting offices and Cyprus non-Resident Companies

A company incorporated in Cyprus is not considered to be a tax resident of Cyprus if it is not managed and controlled in Cyprus . A Cyprus company not managed and controlled in Cyprus is expected to have the majority of the directors to reside outside Cyprus and to hold Board Meetings outside Cyprus .

Companies incorporated in Cyprus but not tax residents of Cyprus are not subject to taxation in Cyprus unless they have a permanent establishment in Cyprus or they receive rental income from property in Cyprus or they make profits from the sale of Cyprus based real estate.

The advantages of a Cyprus non-resident Company are the following:

Trading Profits

The Cyprus non-resident company can buy and sell worldwide and the profits will be exempt from taxation in Cyprus i.e. zero tax in Cyprus .

Interest income

Interest income from deposits with Cyprus banks will be received without any deductions and with zero tax in Cyprus .

VAT registration

VAT registration in Cyprus , a European Union member country.

Dividends distributed

No withholding tax on dividends distributed to non-resident shareholders of Cyprus Companies.

Interest paid

No withholding tax on interest paid by a Cyprus Company to non-resident creditors.

A Cyprus non-resident company can not take advantage of the Double Tax Treaties concluded by Cyprus .


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