One of popular internet resources, wikipedia.org, says: “Views of offshore financial centres tend to be polarised. Proponents suggest that reputable offshore financial centres play a legitimate and integral role in international finance and trade, offering huge advantages in certain situations for both corporations and individuals, allowing legitimate risk management and financial planning. Critics argue that they drain tax from wealthy (and not so wealthy) nations, are insufficiently regulated, and facilitate illegal activities such as tax evasion and money laundering while avoiding legal risk under corporate veil.”
Cyprus is sometimes called a tax haven, but in fact it is a fairly reputable low-tax jurisdiction, and its fiscal and regulatory regimes are aligned with the EU’s acquis communautaire and the requirements of the OECD. The Income Tax Law which came into force on January 1st, 2003 and Cyprus accession to the EU have both played an important part in the change of the island’s status on the world map.
The framework of controls imposed on business activities maintains the respectable reputation of Cyprus while allowing the activities to be conducted in an environment almost free from burdensome and bureaucratic restrictions.
Despite challenging road ahead after the EU bail-out deal, with its impressive tax treaty network (over 40 countries) containing vast amount of benefits that can be utilized via corporate structuring and tax planning, Cyprus continues to be a tax efficient location for holding, financing, royalty, trading and shipping companies as well as trusts which were introduced by the International Trust Law in 1992.
Please do not hesitate to contact us if you require more information on the above or our assistance/advice on your specific queries.