Did you ever wonder if it was possible to lower your business taxes? Did you ever ponder over how to secure your assets?
To some extent it’s something every business owner strives for. As entrepreneurs, we all think about getting the most out of the efforts and resources we commit to a business.
How far would you go to make it possible and how could you do it?
By setting up an offshore company, a Cyprus company to be exact.
But before I explain why I am sending you all the way to Cyprus, of all offshore jurisdictions, let me tell you what an offshore company is and why you would need one.
Simply put, an offshore company is an entity, established outside of the country where you are residing and paying taxes. Depending on your business activities, this offshore company may conduct business in just one country or a selection of countries all over the world. The two main reasons for setting up an offshore company are to protect assets and reduce taxes.
Every business needs to pay taxes, and the better your business is doing, the greater chunk of its profits goes towards paying taxes. In the end, taxes can reduce your profits by a significant amount – up to 60% in some countries! By setting up an offshore company, incorporating it into your business funnel and ensuring that this offshore company is a tax resident of a country with low tax rates, you pay much less in tax and save on the overhead of your business.
Then the next question arises – what country (or “jurisdiction” – another widely used term), offering low tax rates, should you pick?
Actually, finding an ideal jurisdiction for your business is a very individual decision based on the nature of your business and the countries you are/planning on conducting business with. The best way to approach this question is to receive a professional consultation. We at Christophi & Associates LLC offer free consultations, so drop us a note and ask for advice.
In general, though, Cyprus is your best choice when you are looking for the perfect gateway to penetrate new markets in Europe, Asia or Africa. Cyprus is also your best choice if besides the strategic location you are looking for the sophisticated infrastructure, fast telecommunications, modern banking network and favorable tax system.
Cyprus tax benefits include:
- the lowest within EU Corporate Income Tax of 10%
- double taxation agreements with over 45 countries
- tax exemption for incoming dividends
- zero withholding tax for payments to non-resident shareholders, creditors and licensors
tax exemption for incoming dividends
- tax exemption for capital gains on the disposal of either shares or property situated outside Cyprus unless the company holds immovable property situated in Cyprus
- possibility to establish Trusts for inheritance, wealth protection, financial planning, unanimity and other purposes
As you can see, in many respects Cyprus is your best choice when you want to structure your business in the most tax-effective manner.
To learn how YOU can benefit from establishing a Cyprus company, call us at +357 22 45 62 50 , or e-mail us at firstname.lastname@example.org