About Cyprus jurisdiction
The Republic of Cyprus is a state of 9,250 km2 on the island of Cyprus in the eastern part of the Mediterranean Sea. The island is culturally attached to Europe, although this jurisdiction is closer geographically to the Near East. Cyprus is a member of the UN since 1960, the European Union since 2004, the WTO, the Francophonie and the Eurozone since 2008.
The country became independent in 1960 with Britain, Greece and Turkey as protectors. Nevertheless, in 1974, following the prediction of a coup organized by Greece to take the territory, Turkey intervened militarily. The island then separated into two territories: the Greek Cypriot community in the south and the Turkish Cypriot community in the north, which became the Turkish Republic of Northern Cyprus and is recognized only by Turkey.
The economy of Cyprus is open and based on services. The tourism sector, the real estate sector and the financial sector are the main Cypriot industry. Indeed, the tertiary sector constitutes more than 87% of the GDP of Cyprus and employs more than 80% of the active population. Maritime transport, financial services and tourism are the pillars of the country’s economy.
Cyprus was the richest of the ten new European Union Member States in 2007. However, after the 2008 economic crisis, unemployment increased from 4% to more than 16% in 2014. The country entered a recession in 2009 and had to seek assistance from the European Union. Austerity policies have been put in place and precariousness has developed. Fortunately, the financial assistance plan of the IMF and the European Union allowed the country to gradually move up the slope.
Taxation in Cyprus
Cyprus acceded to the European Union in 2004, making it one of the most attractive business jurisdictions in Europe. Cyprus is part of the OECD White List on tax havens and co-operative countries in tax matters. Nevertheless, the country has many tax advantages, including low tax rates.
The corporate tax rate in Cyprus is 12.5%. It is therefore one of the lowest rates in Europe. Moreover, if the business is used only as a holding company (a company that holds shares in others), then it is not taxable. Dividends, profits from the sale of securities on the stock exchange and interests not directly related to the main business of the company are not taxed either.
The VAT in Cyprus is 19%. This rate applies to imports and deliveries taking place in Cyprus. It is reduced to 9% for catering, 5% for medicines or animal products, and 0% for food and for the international transport of goods and people. It is important to note that companies on the island are required to keep their accounts up to date each year and a treaty of double taxation binds that France and Cyprus.
Cyprus and European Union
Cyprus is the largest island in the eastern Mediterranean. That is why the island has long been a crossroads between Europe, Asia and Africa. Even if the country is a member of the European Union, taxation there is low. That is why Cyprus is sometimes considered a tax haven. His entry into the European Union allowed him to experience great economic growth.
After the entry of Cyprus into the European Union, the banking sector became a pillar of the Cyprus economy, to the point of weighing 6 times the country’s GDP. However, with the economic crisis of 2008 and the collapse of the economy of Greece in 2010, in which the Cypriot banks had invested, Cyprus and its economy also collapsed. However, European and international aid have allowed the restructuring of this sector, which has raised the mind and now weighs 3 times the Cypriot GDP despite the liquidation of one of the main banks.
Open an offshore bank account in Cyprus with FBS Banking™
With an offshore bank account in Cyprus, you will be able to make your transactions with multiple currencies, international bank cards, an efficient eBanking platform and multilingual customer service. You will thus be able to safeguard your financial assets while having access to the European institutions because Cyprus is a member. In addition, there is no minimum deposit or minimum balance on the account. FBS Banking™, with more than 20 years of experience in the offshore banking sector, is the intermediary you need to open an offshore banking account in Cyprus.
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