Financial Tax Planning

The aim of tax planning is to arrange financial affairs so as to minimise overall tax liability. Whether you are a sole trader, limited company or a high net worth individual you can benefit from effective tax planning.

Effective tax planning starts with identifying sources of income and the reliefs and allowances which may be available within the Republic of Cyprus for any given transaction. Tax planning does not always rely on suitable legal structures e.g. employee trusts or inheritance trusts, but can, in some situations, be improved by the nature and timing of transactions, taking advantage of tax rates and tax relief in different tax years.

EBS Consultancy Services Ltd (EBS) in conjunction with our Financial and Accounting specialists will provide a bespoke Financial Service to you and your companies. Our comprehensive understanding of Tax Affairs, legislation and the government operational structure in the Republic of Cyprus ensures that we are able to provide an optimum Financial Service to satisfy your personal and corporate needs

Our services include:

  • Tax Advantages

EBS have a comprehensive understanding of the numerous tax advantages available to you within the Republic of Cyprus, and will advise you of the most cost efficient and effective way to structure your affairs to optimise the gains. These include:

1.  The mechanism for people who do not want to live in Cyprus full time to make a semi‐commercial property investment in Cyprus, through owning a Cyprus Limited Company, and enjoy the Corporate tax benefits in using the Corporate entity to purchase the asset. They will also enjoy the benefits of a 5 year (renewable) Cyprus EU Permanent Residency Permit

2.  10% Corporation Tax

3.  0% Dividend Tax. The foreign beneficial owners of Cyprus Companies are not liable to Dividend Tax

4.  No Capital Gains Tax on the sale of shares in a Company which holds fixed assets

5.  No Inheritance Tax on the sale of shares

6.  International and exceptionally beneficial double tax treaty network

7.  Invoices from off‐shore companies are acceptable in Cyprus’ Companies books, and payments to off‐shore companies bear no Withholding Tax

8.  Where administration and control are outside Cyprus, profits of branches are fully tax exempt

  • Corporate Tax Planning Structure Planning

Cyprus’ tax system is specifically structured so as to maximise the tax advantages, while remaining EU and OECD compliant. EBS, in conjunction with our Financial and Accounting specialists, can recommend the most financially beneficial tax planning structures to maximise profit. These include, but are not limited to:

•  The use of a Cypriot company as a “top holding company” to invest in treaty or EU subsidiaries, benefiting from foreign dividends, which are exempt from tax, no capital gains tax, no withholding taxes and access to double tax treaties and EU Directives

•  The use of a Cypriot company as an “intermediate holding company” to invest in treaty or EU subsidiaries , benefiting from foreign dividends, which are exempt from tax, no capital gains tax, no withholding taxes and access to double tax treaties and EU Directives

•  Cypriot Construction companies performing construction or related activities in other countries in order to take advantage of the PE article of the treaty between Cyprus and that other country

  • Bookkeeping, Accounting and Preparation of Statutory Company Accounts

EBS in conjunction with our Financial and Accounting specialists, undertake the accounting and VAT functions of each client, ensuring that proper and accurate accounting records are maintained, and ‘real-time’ reporting is available to the client.

Services include:

•  Maintenance of computerised accounting records

•  Preparation and submission of quarterly VAT returns

•  Liaison with the government bodies

•  Development and preparation of monthly, quarterly and yearly management accounts and other management reports

•  Preparation of interim financial statements under International Financial Reporting Standards (IFRS)

•  Preparation of annual statutory financial statements under International Financial Reporting Standards (IFRS)

  • Auditing of Accounts

According to the Cypriot law, all legal entities are subject to a financial audit conducted by independent auditors, always in compliance with the local legislation, the requirements of the Central Bank of Cyprus and the tax authorities. A business audit adds credibility to a legal entity and verifies its financial statements. EBS, in conjunction with our Financial and Accounting specialists will accurately undertake any financial audit activity, such as statutory audits – according to IFRS – due diligence and investigation audits, conduct bank and system audits and internal control reviews and provide meticulous reports and best practice recommendations for operational effectiveness improvement