Why Cyprus Offers One of the Most Attractive Tax Regimes in Europe for your Online Business?

Online business is the normal around the world today. Cyprus has become one of the top EU countries with attractive tax slabs and rates. They have special benefits for the citizens with other country’s citizenship and those with Cypriot citizenship. This said, many investors are looking at a positive arc of growth the country is sporting right now. The geographical location and its closeness to other European and Asian countries have given it a boost. This is why today Cyprus is the best place for digital business today. What are the different tax benefits you can look for while doing your online store or e-commerce business?

Amazing Tax Structures

One of the crucial areas every entrepreneur thinks of while starting a business is the tax he has to pay. In Cyprus, if you are a tax paying citizen, you just have to pay a corporate tax of 12.5%. This is perhaps the lowest it can get. There are 0% withholding taxes on dividend payments. Thus, there is no tax on the dividends to pay as a Cypriot-based online business entrepreneur to your shareholders abroad. This is in case your business is a trading firm. However, there are also benefits if yours is a Holding company based in Cyprus. You get complete tax exemption on the disposal of subsidiaries and shares.

More Benefits for All Cyprus-based Investors

The best reason for any person to go for the online business is its small scale set up. At Cyprus, you will get highly skilled professional staff in your payroll. You will not have to worry about office property. You can get a residential property for VAT as low as 5%. In fact, the tax saving benefits is the reason for investors to settle down in Cyprus today. Many companies are looking for setting up their head office here because of its low tax rates and even for making a loss on taxes.

Best of EU Agreements

Cyprus has really struck a solid deal with other EU countries for favoring its business milieu. Today, we talk of tax benefits in Cyprus, but we also have to remember the country has over 64 double tax treaties and more than 40 EU trade agreements. This is helpful for the entrepreneurs to rake in millions in earning from their digital business in Cyprus. This is perhaps the golden era of doing e-commerce business in Cyprus.

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Get Better Income Taxes Working From Cyprus For Your eShop

Get Better Income Taxes Working From Cyprus For Your eShop

When you become a tax-paying citizen of Cyprus, you will need to pay taxes to the Cyprus government. To become a Cypriot resident, you need to have spent more than 183 days a year in the country. There is also an option of the 60-day rule to become a citizen. Whether you draw income from within Cyprus or from jobs in other countries, you need to pay taxes here. However, there are specific rules on what to pay and how to pay if you are running your E-Commerce business. Cyprus as such has one of the lowest tax rates in the entire EU. Cyprus-based businesses have to pay taxes on their worldwide income at a rate of 12.5%.
Let us check out the tax details for you to know and pay in time.

• Taxes as a Resident and as a Non-resident

If you are a resident of Cyprus, you need to pay taxes on any income from any of the sources mentioned here. You will have to pay taxes on rents, profits, dividends, and income. As a non-resident too, you need to pay taxes on rents, pensions, income from any companies in Cyprus or even profits from businesses in Cyprus. In short, you are required paying taxes only on income earned in the island country of Cyprus.

• More about Other Specific Tax Slabs

If you are disposing an immovable property, and earn capital gains, you have to pay a tax of 20%. The typical VAT rate in Cyprus is 19%.

• Save on Taxes

You will be able to save your income tax in Cyprus if you are drawing a lump sum payment on the retirement or commutation of pension or even the gratuity. If you are taking a scholarship for higher studies, you will not have tax exemptions of 100%. Likewise, even as you incur capital sums from life insurance policies, PF, and approved medical schemes, you get 100% exemption.
Many people invest in running their e-commerce business from Cyprus. Its coastal location fuels up its excellent logistics. It is also a budding real estate market for those willing to become a citizen here and start a business right away. Make use of the tax laws and get the best while living in Cyprus. Whether for tax saving on their income from their eshop or simply for getting a better quality of life, one can always benefit while in Cyprus.

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Invest 2 Million And Get A Passport In Cyprus To Reduce Your Business Taxes

If you are an investor and like keeping a note of each country’s growth and development, you will know of the booming economy of Cyprus. The Republic of Cyprus is now a big draw among the investors, entrepreneurs, and real estate developers alike. If you are eager to become a citizen and look for the ways on how to get a passport in Cyprus, here are the steps to follow.

• Check out the Golden Visa Plans
You can get a permanent residency permit. To gain citizenship however in Cyprus, you will have the option of investing 2 million in the real estate. The country will be offering citizenship in just as many as 6 months after making this investment.

• Perks of This Investment
On making this investment, you get a citizenship of an EU country and permit to work and travel or study anywhere in the EU countries, including the UK, France, and Germany.

• Save Taxes on Investment
Entrepreneurs often wonder about how to save business taxes in Cyprus after investing in real estate. Citizenship is very beneficial to your plans. It does have its additional tax saving donation plan to help you further. Additionally, you get PR permit too of living in Cyprus. As per the non-domicile entrepreneurs, you have zero taxation options of worldwide dividends and interest based income. This is for a total of 17 years.

What Makes The Citizenship and PR Status So Essential in Cyprus?

As a growing country, it makes a lot of sense to invest in the real estate property in Cyprus. Get that beach facing villa in a booming coastal area of Cyprus. The property rates are competitive now, and to get yourself property and even settle down, you will need to follow a few strict rules.
Investing in real estate now is better since the rates for the property will go high soon by the rate of growth. You now do not have to worry about how to get a passport in Cyprus now thanks to these unique investment plans.

Just contact us today and we will help you out