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How to optimize your taxes

There are reasons why Cyprus citizenship by investment can change your life. One of it is about optimizing your tax. Those who are looking for opportunities to optimize their tax can be attracted to the Cyprus’ law tax rates and there is also the possibility to restructure business and the optimization for tax.

Cyprus tax advantages in your business

Tax planning in Cyprus can reduce or fully eliminate your tax liabilities that are associated to some international activities. A structured Cyprus entity in a tax plan could:

  • Reduce your taxation within the country in which your incomes came from.
  • Reduce the amount from receiving money that were earned outside of the country.
  • Reduce the taxation for ultimate shareholder in the structure of tax planning.
  • Reduce the tax for international business activities, thus increases the return of investment.

Tips on how to optimize your tax and help your business save money

Shift of income for the following year                                          

Paying the taxes on income that you have received throughout the year is your responsibility. When the end of the year came, you can push some client and customer bills to the following year, that can give them a larger period and ensure that you will pay if that income will come to your company.

Charitable contributions

You can gain tax advantages if you donate to some charitable institutions. Donations can help to reduce your tax expenses. Aside from reducing your tax, you can also have a warm feeling that you do something for the other who are in need of help.

Invest equipment

If you will need additional equipment like office furniture, machines and computers, then you have to buy these before the end of the year comes. You can benefit from its depreciation that can lower your income tax.

Organization of expenses

Organizing all your business expenses during the whole year can help you by deducting them when the end of the year comes. Sometimes, small business didn’t keep track their expenses, so they are not deducting it. Make sure to keep of your business expenses and separate them from your personal expenses, because it can be a big help for your tax.

Working with tax laws’ Professional

Sometimes, tax law tends to change, and being updated to those changes is very important for you to comply with the law. The best way of keeping the right track with tax laws, is to work with some professional tax adviser.

What Is Corporate Tax?

When it comes to Cyrus company formation, there are certain rules and regulations that entrepreneurs and business must adhere to in order to operate their business, including the need to pay for corporate tax. The country has a favorable taxation regime that’s why a lot of foreign investors are very interested in registering their company in Cyprus.

What does Corporate Tax Mean?

Corporate tax refers to the tax placed on the taxable profits of companies and other profitable organizations, such as societies, associations, clubs and unincorporated entities. The taxable profits include the profits from capital gains, also called as chargeable gains, and taxable income, including investment or trading profits.

Organizations and companies based in the UK are expected to pay a corporate tax on every taxable profit, regardless of where in the world the profit comes from. Once a company is operating in the United Kingdom, but is not based in the country, like operating through a branch or an office, the corporate tax must then just be paid on taxable profits that arise in the UK.

How to Pay for Corporate Tax?

To make sure that your business is paying the required tax, your corporation has to register for corporation tax as part of establishing a private limited company within 3 months of the beginning of the trade (e.g. receiving payments and making sales.) As a corporation, you are responsible for keeping accurate accounting records that you can use in preparation for the annual tax return of your company.

Corporation tax is actually paid on every profit earned by the company of business, which include the trading profits, investments and the money made from chargeable gains or selling assets.

Also, business tax is imposed on every relevant business entity at the end of each accounting year. It is charged for the profits accumulated during the accounting periods of the business. The tax must be paid within the deadline. Filing of tax return should be completed twelve months after the end of the period of accounting.

If correctly structured, a company in Cyprus can conduct an international business in a tax efficient manner. Cyprus company formation enables business owners to legitimately conduct a business in the country and internationally subject to a tax rate of only 12/5 percent, which is among the lowest rates in the EU. Also, Cyprus is ranked as the twentieth freest economy in the world in the 2012 Index of Economic Freedom conducted by the Heritage Organization.

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How to Choose between the Types of Cyprus Company Formation

Forming a limited liability company in Cyprus is very attractive owing to the advantageous tax systems prevalent in the country. Being a member of the European Union, the country offers one of the lowest tax percentages in Europe of 12.5%. The taxation policy is fully compliant with the OECD (Organization for Economic Co-operation and Development), so investors are guaranteed that there are no malpractices. Although the country is relatively smaller, it’s ideal to gain offshore benefits like so many of its counterparts in the region.


Cyprus Company Formation can answer your requirements for international tax planning.  There are many exemptions offered for foreign sources of income, withholding tax on outbound dividends, interests, and royalties. Profits gained from share transaction are also exempt in Cyprus. There are no exchange controls, weak capitalization rules, and no capital gains. The initial step should be to the have the approval of the Registrar of Companies and ensure that the proposed company is accepted. There are many agencies that will help you with the necessary documentation of memorandum of association, articles of incorporation, and other formalities. The first step is to decide on the type of company to form when investing in Cyprus.


The most popular types of companies to form are ‘Branch’, ‘Limited Liability’, and ‘Partnership’. By comparing the three options, you would understand which suits your business requirements. Forming a ‘Branch’ will mean that the foreign party is liable complexly for what is incurred within the Cypriot branch; it is required to be registered with the Registrar of Companies, and have all annual accounts to be filed in Greek. On the other hand, a ‘Limited Liability Company’ does not require a minimum share capital; it should also have a between one and fifty shareholders and an appointed director. All accounts must be audited and filed in Greek. If none of these features appeals to investors, they can also look at forming a ‘Limited Liability Partnership’ where the required partnership numbers should be between two and twenty members. At least one of the partners must be appointed in the capacity to absorb unlimited liability of the company. Although it is required to be registered formally via the Registrar of Companies, there is no mandated need for auditing accounts.


One may argue that the country is not particularly generous towards foreign investors with investment incentives; however, many investors do see the plus side of the low-taxation within the country. Apart from this, companies can benefit from the loans and grants available for investors in high-tech and economic sectors.


Reasons why Cyprus is the perfect location for Tax Planning

They say the secret to saving your taxes, is knowing something the tax inspector doesn’t know. Cyprus having one of the lowest cooperate tax rates at only 12.5% makes it an ideal location. At Cyprus Company Formation our goal is to help you build those business dreams you have been envisioning. Unlike most other tax companies, we want to help our clients as much as possible, by offering honest and realistic advice. Below will list some reasons why choosing Cyprus to invest in, will be great for you.

Since Cyprus is considerate to have the perfect juristic location in the whole of Europe and forms a limited liability company, due to its very attractive tax system. Cyprus now being a member of the EU, we can offer you one of the lowest tax regimes in Europe. Cyprus is ideal for having assets because it presents the same benefits as a traditional offshore jurisdiction can offer. Full exemption on divided income, no capital gain and no withholding tax for dividends paid to non-residents. Cyprus being an established international financial centre, with a net worth of double treaties and further prevalent is an economic and legal infrastructure, plus numerous other advantages.

To start the company off the registrar of companies needs to be consulted to confirm if the name given by the proposed company is acceptable. After the approval of the name, the necessary documentation is prepared and filled out. The documents needed are the memorandum of association, registered address of the directors and secretary, all which is done under our supervision and care, thereby making your workload less and making sure everything goes to plan.

Cyprus also offers clients with personalized packages to suit each individual, making it another reason why many investors prefer us. Assistance is given in finding a company name, certificate of incorporation, memorandum, articles of association, and appointment of the first directors along with anything else the client needs and is expected. The minimum requirement you need to have is a Director, Shareholder and Company Secretary to get started, the rest is detailed along with the consultation

Combined with the many outlets of investment opportunities, the low tax rates and professional services and infrastructure provided, it is not hard to guess why many people look to invest in us. The perfect location, tax treaties and one on one exposure only emphasises why Cyprus is placed amazingly high on the list.

The Benefits and Features of a Cyprus Incorporation

Getting your company incorporated in Cyprus certainly comes with a host of benefits and features. We at Cyprus Company Formation, help you out with the process and give you the necessary information and tools needed to start. With low tax rates, a list of double treaties and being the hub of three continents, it presents many positive attributes.

Key Benefits:

  • Cyprus being a former British colony, the English language is widely spoken and the legal structure is based on its English counterpart, which enables a common law between many Cypriot lawyers because of training received in the United Kingdom.
  • The economy in Cyprus provides vast opportunities, cost effective tax planning and international business ventures.
  • With first class legal and accounting services, convenient airline links with Europe, Asian and the Middle East, makes Cyprus the perfect place to conduct business.
  • Being a leader of international tax jurisdictions makes registering a company in Cyprus smart for protecting your business.
  • In the last ten years international tax planning in Cyprus has increased dramatically.
  • Being a member of the EU, Cyprus has established a reputation for being reliable and legitimate with the lowest tax rates in Europe, all the while having over forty additional tax treaties which will help you with planning.
  • Having a Cyprus incorporation up and running gains you liability and first-hand experience on how everything functions.


Key Features:

  • Gaining information and insight is easy, with the many guild lines and tips provided, getting started is hassle free.
  • Services such as registration, limited liability partnerships, service address, and trademark registration and confirmation statements are just a few of many services we provide.
  • Professional customer support, before and after the registration of a company is provided to each client.
  • If assistance is needed during a certain point, we provide the relevant steps and information via email, online chats or personal telephone calls.
  • A legal team can also be provided if requested by the client, if the process seems confusing or you require some legal advice before investing your money.
  • Advice on management for directors, shareholders, managing directors and secretaries is provided as well, because we want our investors happy and prosperous.
  • We go the extra mile to make sure all our clients get the best of their money’s worth and we assist in helping them fit into the tax systems being used in Cyprus.
  • Information is provided on how to generate a capital is also provided, enabling a smooth flow continues after the investment has been made.