“Welcome to Paradise”
If we ask the question, ‘Why open a business or live in Cyprus?’, we get the usual list of benefits including location, climate, low crime etc. etc. and generally the lifestyle is certainly difficult to achieve. defeat. On top of all that, a recent ‘Value Penguin’ survey ranked Cyprus as the fifth safest country in the world.
Inevitably, any paradise that attracts so many decent people will also mean that greed and corruption will find their way, and in Cyprus this caused devastation that came close to utter destruction.
Fortunately, Cyprus now has a forward-looking president who is making great strides in overhauling the system that created this all-powerful mess. He seems to have faced the facts and is coming face to face with harmful politics, high level corruption and a bureaucratic system that was, and still is in some places, bordering on sheer stupidity!
So now we can add to the positives that Cyprus is revamping its banking system, has changed the laws to create security for those who buy property and has shown that corruption will not be tolerated.
The government has also passed recent changes to tax laws that make Cyprus one of the best places in Europe to do business!
It is now possible for non-residents of Cyprus residents to receive dividends without payment of any tax, including the defense tax previously due! Plus, under the current rules, if you structure things right, you can invest that money for your future and get tax-free growth and tax-free income!
For example, a Russian or Chinese citizen resident in Cyprus for tax purposes may have a shareholding in a Cypriot company that pays dividends to their offshore bank account, the dividends are paid tax-free. They can then invest that money in a tax-efficient contract that will allow them to receive tax-free growth, and the same account can be used to pay them regular income tax-free.
That’s a lot of additional tax benefits!
That might seem like the Cyprus government is favoring foreigners, but consider the long-term impact of freely circulating money on the economy. It’s a clever method of quantitative easing for the people! The Cyprus government gets tax from the business and the local economy gets a direct boost from the extra purchasing power.
In 2013, Cyprus may have died in a fire of its own making, but like the Phoenix, it has risen from the ashes with new strength and vigor, and that could ensure its immortality in the business world.
So while ‘Transparency’ seems to be the most overused word in finance these days, Cyprus certainly has a clear message: If you have any concerns about the safety of you, your family or your money… Play it safe, plan ahead and move to Cyprus, it’s good for your health and wealth!