In the recent past, Cyprus has become one of the most popular destinations to start LTF companies. Numerous binary options and forex brokerage companies saw the perfect opportunity to start a business on Cyprus, as benefits of this Mediterranean island go beyond pretty beaches and antique relics. Cyprus has become so popular that every year hundreds of new companies appear, and most popular form of entrepreneurship is an LTD or a limited company.
LTD’s are companies in which members are liable, but only in the amount that have invested or guaranteed to the LTD company.
In case you are still wondering whether or not should you invest on Cyprus as an EU citizen, keep in mind that Cyprus economy is booming. In 2010, there were over 250.000 companies registered on the island, including some popular forex and binary options brokers like Plus500 and BDSwiss. EU citizens will be happy to know that one additional benefit of starting an LTD on Cyprus is the fact that the country is practically bilingual, so besides Greek, everyone speaks English as well. Procedures and bureaucracy are minimal so that investors can expect quick and responsive service.
Benefits of Starting an LTD on Cyprus
Beneficial Tax System
Cyprus is known to have a favorable taxing system, which made it very interesting for foreign investors, both EU and offshore alike. One of the crucial things to know is that companies that are managed and controlled on the island, are taxed on income made locally and outside the country. Cyprus has one of the lowest income tax rates – only 12.5%, which is interesting for investors all over the world. There are also many other perks and benefits that include dividend income, interest income and profit from securities disposal are all free of tax. It is also possible to transfer assets and liabilities between companies without any additional taxation. This can be considered a rarity in the business world.
Double Taxation Treaty
Cyprus has signed a special form of agreement with many countries in order to avoid double taxation. This means that business doesn’t have to pay tax for the same thing twice. The best way to find out whether or not your country has signed this agreement make sure to contact your or Cypriot tax services. Some of the countries that have signed this document are Germany, France, Norway, Spain…
Low Operating Costs
The simple and straightforward process of application and registration of an LTD company guarantee that the costs will remain reasonable. Considering that many EU countries nurture complicated paperwork above everything else, it is easy to see why Cyprus is becoming more and more popular among EU investors.
Great British Heritage
Cyprus was a British colony for a long time, and this heritage is visible in their legislation as well. The legal system is effective and practical while providing a safe regulatory framework for day-to-day operations. Considering that finance and banking are in a significant increase on Cyprus it can be concluded that there is plentiful of options and solutions for everyone.
Amazing Location
Even though it is an island, Cyprus is not cut out for the rest of the world. It is positioned strategically, near Asia, Africa, and Europe. Their currency is Euro. Cyprus takes great pride in their heritage but is also open to new things and innovations. Cyprus develops each day more and more to become one of the most attractive business locations in the European Union.
High-Quality Workforce
Thanks to their entrepreneurial spirit, Cyprus is attracting many experts and specialists all over the world. As already mentioned, English is mandatory in most workplaces, and university level education is very common, if not obligatory. You can expect not only programmers from Eastern Europe but also, financial specialists from the United Kingdom and Germany.
Cyprus motivates foreigners to bring their investments to the island and 100% foreign ownership is no issue. LTDs are the most popular form of company in Cyprus, but there are other options as well. In case you are not sure if LTDs are the right for you, make sure to contact one of the specialized agencies on Cyprus.