The British Virgin Islands are one of the most famous tax heavens in the world, but often BVI companies have business dealings in the famous tax haven Cyprus, as well. BVI benefits include freedom from capital gains and corporate taxes, as well as inheritance and sales taxes, and incorporation can be complete in as little as two days. Furthermore, BVI offers maximum asset security with the ability to transfer domicile. Directors can protect an International Business Company’s (IBC) assets by transferring them to another company, merge or consolidate them with a foreign company or corporation in another jurisdiction.
BVI businesses with merchant accounts might face higher bank fees on the islands, and owners are sometimes turned away from banking institutions, unable to open an account. But BVI companies can easily open business bank accounts and merchant accounts in Cyprus, which is attractive to companies, as Cyprus is a part of the European Union. To set up a Cyprus bank account, register your BVI as a holding company and international business company, and have your incorporation documents available.
BVI companies with Cyprus bank accounts enjoy secrecy, privacy and assets protection. Authorities do not have access to bank account information, and a court order is required to gain access. Dividends on profits can be moved tax free to your company in BVI. Additionally, Cyprus has double tax treaties with 45 countries including Canada, the United Kingdom, the United States and most European Union countries. And finally, you can manage your Cyprus accounts easily through phone calls and fax.
In another matter of business, BVI companies sometimes step in for Cyprus companies as shareholders. This is done to disguise the real owner of a Cyprus company, even when the Cyprus company is run by nominees. Shares are only held on behalf of the beneficial owner. The beneficial owner is the only one who has the right to dispose of those shares, and is entitled to all benefits and profits deriving from those shares.