With the advent of globalization the location of a holding company is an important consideration in any international structure where there is a desire to minimize the tax charge on the flow of income and capital gains. We have the expertise to establish or restructure the international operations of corporate clients utilizing the world’s double tax treaties.
PERSONAL SERVICE COMPANIES
Clients who engage in the provision of professional services in the construction, engineering, aviation, shipping, finance, computer software, consulting and entertainment industries can achieve significant tax saving benefits through the establishment of a personal service company in Cyprus, which ultimately entails the taxing of the net profit of such a company with one of the lowest tax rates in the world.
WORLD WIDE TRADING
Tax efficient trading in the procurement and supply of goods and services is often the key to the success of many projects. Through the utilization of certain corporate entities, clients are benefited by treaty relief and other tax or legal mechanisms offering tax reduction benefits.
For clients wishing to purchase real estate in Cyprus for investment or permanent residency purposes, or for those seeking to buy a property for leisure or retirement, there are substantial benefits to be derived through the establishment of a corporate or trust structure to address capital gains tax issues, inheritance tax and forced inheritance rules. Additionally, beneficial tax set ups are available to keep capital gains tax at a minimum (o%) for properties owned by Cypriot entities abroad.
ROYALTIES AND INTELLECTUAL PROPERTY RIGHTS
Royalty income created from intellectual property used by a Cypriot entity which is granted the right to use a patent, trademark, know-how or innovation outside Cyprus enjoys no withholding tax on payments to the licensor and the Cypriot company is taxed at the corporate income tax rate on the profit margin that it realizes on the use of the right, subject to an 80% exemption. Effectively, 12,5% corporate tax is paid on the 20% margin, ie effective rate of 2,50%. The same provisions apply in the sale of such intellectual property.
Wealth succession is a complicated matter and careful planning is the key ingredient for it to be successful. EAS will work together with the best professional advisors to ensure that the most tax-efficient solutions are selected to provide maximum long-term benefits.
DOUBLE TAX RELIEF
Income derived from a country where a person is not resident, may be the cause for being taxed twice on the same income. We can assist in investigating the existence of a double tax treaty applicable to the client and properly applying the clauses of the double tax treaty to avoid the risk of overpayment. Our professionals can help to ensure that you gain maximum advantage from global tax treaties.
Cyprus is one of the most prestigious flag regimes world-wide. We undertake the establishment of ship owning and managing companies as well as the registration of ships under the Cyprus flag.
YACHT & AIRCRAFT OWNERSHIP
Our clients can benefit from the many advantages that are available through properly structured ownership and registration procedures for yachts and aircrafts. These benefits include, but are not limited to, reducing VAT exposure within the EU.