Review of company formation in Cyprus

Advantages

  • Profits are taxable at 12,5% only
  • No Withholding tax on dividends and interests by default
  • Euro currency
  • Access to SEPA transfer
  • Few administrative procedure

Disadvantages

  • Annual tax audit by chartered accountant is mandatory from the 1 euro of profit
  • Cypriot Banks all require a bank reference letter
  • 3 banks in Cyprus have bad credit ratings (Fitch, Moody’s): Hellenic bank, Piraeus, Eurobank because they are exposed to the Greek crisis. However, they ask as much paperwork as other banks just like they would not need a deposit.
  • There is a real source of political uncertainty due to border shared with the Turkish regime located in North Cyprus.

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