CYPRUS: Re-domiciling a British Company to Cyprus due to Brexit
One of the main issues that concerns the world, and specifically Europe, is the “British Exit”, or otherwise commonly referred to as the “BREXIT”, from the European Union. Particularly, on 31/10/2020 the United Kingdom signed the Withdrawal Agreement which had a transitional period of eleven (11) months. From the 1st of January 2021 the United Kingdom has officially ceased being a member of the European Union. The Brexit caused various issues to the business world and especially to the British business owners. However, what are the advantages of re-domiciling a company in Cyprus?
Because of the many issues that have already arisen in the British business world due to Brexit, many business owners are considering their possible options in order to maintain their close business ties with the European Union. With the introduction of the Fast-Track Business Activation Mechanism it could be said that Cyprus offers a competitive scheme with many advantages for those who want to re-domicile their companies in Cyprus. Some of those advantages are the following:
- The attractive tax regime with corporate tax at the rate of 12,5%,
- There is no withholding tax on the dividends or on the interest,
- There is no capital gain tax,
- Cyprus has treaties with over than 60 countries in relation to the double taxation,
- Cyprus allows companies to be owned solely by foreigners,
- The legal and judicial system of Cyprus is identical with the English, and
- Cyprus ensures the implementation of all the EU Directives.
As Cyprus, is a member of the European Union, it means that the companies running their business in Cyprus will be entitled to enjoy all the advantages of the European Union, and the most important of them, the free movement of goods.
For further information on this topic please contact
Ms. Michelle Georgiou( mgeorgiou@pittaslegal.com ) at SOTERIS PITTAS & CO LLC,
by telephone (+357 25 028460) or by fax (+357 25 028461)
The content of this article is intended to provide a general guide to the subject matter. Specialist advise should be sought about your specific circumstances.
