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:
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 from deposits with Cyprus banks will be received without any deductions and with zero tax in Cyprus .
VAT registration in Cyprus , a European Union member country.
No withholding tax on dividends distributed to non-resident shareholders of Cyprus Companies.
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 .