Updated: Feb 25, 2022
WHAT IS REDOMICILIATION ?
The term company relocation/migration – generally referred to as ‘re-domiciliation’ – involves the de-registration of a company from its current jurisdiction and the re-registration in another jurisdiction. Re-domiciliation usually occurs when the original reasons why a company was incorporated in a particular jurisdiction do no longer exist or where another jurisdiction presents more advantages that the current jurisdiction does, therefore assists to the better evolvement of the company.
REDOMICILIATION VS LIQUIDATION
Benefit of Continuity
No interruption or distraction of business
Change of registered office
Change of jurisdiction (therefore laws, taxation etc.)
Retention of legal entity
Legal entity can benefit from law or taxation of the new jurisdiction.
More difficult procedure
Need of incorporating a new legal entity
Long process of transferring assets from the one entity to the new entity
Cyprus is admitted to be one of the best, reliable and trustworthy jurisdictions in the EU that offers great opportunities for international companies, investors and traders.
· Corporation tax 12.5%
· Double tax treaties with over 60 countries
· No tax on dividends, interest and rental income of non-domiciled individuals.
· 50% exemption on employment income exceeding €100,000 per annum for non-residents taking up employment in Cyprus
· No taxation of capital gains (except for disposal of real estate in Cyprus)
· Foreign tax relief on income subject to both Cypriot and overseas tax
· No withholding taxes on interest and dividends
· Exemption from tax on gains from the disposal of securities
· Attractive Intellectual Property regime– effective tax 2.5%
· Dividend between Cyprus companies is tax exempt
· As an EU Member State, legislation complies with EU Directives and Regulations
WHY L. GNAFTIS & CO?
L. Gnaftis & Co is one of the leading and well-established boutique Audit and Tax Consultancy firms in Cyprus. Our team consists of experienced qualified professionals that can cover your company’s needs and provide solutions to you and your business for the better benefit. L. Gnaftis & Co has an experience in the market and field for almost two decades and has gain the trust of hundreds of international & local businesses among the years. L. Gnaftis & Co can efficiently and effectively undertake the redomiciliation process of your business to Cyprus, complete the procedures from the beginning (de-registration from current jurisdiction) to the end (registration in Cyprus), and also assist your company adapt in its new corporate environment!
For more information:
W- www.lgnaftis.com (Online Chat Available)