Using an Offshore Company to Own Property

In some jurisdictions, ownership of property by an IBC (Offshore Co) minimize or eliminate taxes on capital gains, inheritance and income taxes. For example, if a Cyprus Co owned by someone who is not tax resident in the United Kingdom, has purchased a property in the United Kingdom for investment and the property was then later sold to third The capital gain resulting from the transaction would not be subject to UK tax on capital gains. The advantages of a Cyprus company are: • Capital gains tax: Gains from the alienation of immovable property outside Cyprus, including gains from the sale of shares in companies that own these properties property is exempt from tax on capital gains in Cyprus. • Dividends: No withholding tax on dividends distributed to non-resident shareholders of companies in Cyprus.

UK NON-RESIDENTS OF BUSINESS

A company incorporated in a foreign country is considered a tax resident of Cyprus if it is managed and controlled in Cyprus. A foreign company to be managed and controlled in Cyprus should have the majority of the directors reside in Cyprus and to hold Council meetings in Cyprus. The decision rests with the country of incorporation, but for example, the HMRC (Inland Revenue UK) expect that if a company registered in the UK will be taxed in Cyprus, it should be managed and controlled from Cyprus and activities outside the United Kingdom will not be taxed in the United Kingdom, but it will be considered a tax resident of Cyprus. The British company will be registered in Cyprus with the Registrar of companies as a foreign corporation, and with the tax as a tax resident of Cyprus. The advantages of a UK register non-resident, are the following: • Corporate Tax: Profits of the British non-resident company managed and controlled in Cyprus will be taxed in Cyprus at 10% which is the lowest rate corporate tax in the entire European Union. • Reputation: Enjoy the reputation of the United Kingdom. • Double taxation agreements Cyprus has signed tax treaties with more than 40 countries around the world. A UK register non-resident managed and controlled in Cyprus can take advantage of double tax treaties concluded by Cyprus.