Taxes are one of the things entrepreneurs have to battle with. You have to carefully select the country, which offers the most reasonable tax rates; otherwise, you may find yourself earning for the sake of paying these taxes. In the long run, you end up with no profits, but higher debt to manage. Fortunately, you have a few countries that are very accommodating to interested investors like Cyprus.
Cyprus is known all over the world for its alluring business attractions. It has excellent financial institutions and impressive workforce. Moreover, it has a very low tax rate with various exemptions that makes it the most ideal country to consider setting up a business. You will never worry about excessive debt growth in its midst because the government has set up business structure that will be friendly to their investors. Even a small-scaled company will have higher chances of growing and expanding once it considers making investments in this country.
Cyprus Tax Haven of Entrepreneurs
Taxes are never a worry for entrepreneurs who considered Cyprus as the perfect area of investment. It has a low tax environment that allows offshore bank accounts to gain interest without being charged by the government for these. This makes it a tax haven for any Cyprus company.
Every bank employee swore an oath of secrecy never to disclose information about these offshore accounts as one of the requirements of the countries Central Bank administration. It allows companies to form trusts that will not require them to pay taxes for any income gained outside of their territory. It also allows dividend and interest earnings without disclosing the trust owners name. It does not require financial reporting to authorities and is well protected by legislative law protecting offshore bank account holders. Nevertheless, you will still find it necessary to request the assistance from international tax planning companies to be properly guided on how to go about these business advantages offered by Cyprus banks and financial accounts.
Cyprus and Offshore Control
Cyprus is one of the few countries who have signed double tax agreements with various foreign countries like France, China, Sweden, US, Denmark and Canada. This allows business to freely engage in trade with these countries without the fear of exchange control. It is therefore one of the most favorable places to remit large sum of funds in whichever currency you want it to be. There are many financial institutions that will assist you in establishing multi-currency accounts for speedier and more convenient transfer of funds to business partners anywhere in the globe.
This move of the Ministry of Commerce has led Cyprus to become the leading country for offshore bank accounts. Although, it is still strictly monitored by the relevant authorities, the offshore jurisdiction laws of the country remain reasonable that it remains the perfect choice for many business owners. It has a very flexible offshore structure, which encourages more people to invest in it because of the tax saving advantages it provides. As a result, businesses end up with reduced tax liabilities and lesser debts.