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    • Establishing the Objectives

    We would always recommend to clients that time should be spent in establishing the objectives before forming any company or structure. For example:-

  • what are you proposing to sell (goods, services?)
  • where do you propose to sell them (EU, North American, Far East?)
  • where do you buy goods/service from?
  • your own remuneration – will you be repatriating profits to your home country or will the company’s profits be left offshore?

    • All of the above have implications how much tax you will pay not just in Cyprus but generally. In summary, setting up a company without thinking though the possible implications and consequences may result in costs being incurred with minimal savings.

    We recommend that rather than just ordering a company you provide us with an outline of your objectives and we will be happy to provide you with an initial appraisal without cost or obligation. Many clients prefer a face to face meeting but a trip to Cyprus is often not convenient we are therefore happy to arrange a meeting at our Vienna representative office.

     

    Taxation is Increasing Worldwide...

    Taxation is increasing worldwide and particularly in Europe. We have extensive experience and specialise in providing low tax solutions at reasonable cost. It may be appropriate to use a low tax jurisdiction like Hong Kong or Singapore or even a zero tax jurisdiction such as Gibraltar or a Caribbean jurisdiction. For clients wishing to trade within the EU, a Cyprus company can be a solution.

    IT CAN NOT GO ON …

    The underline figures used in the above graph were obtained from The Economist Newspaper Ltd.

    Government expenditure directly translates to taxation.

    Between 1870 and 2009, some 139 years, Governments have spent an ever-increasing share of GDP * GDP/Gross domestic product = The total market value of all final goods and services produced in a country in a given year.

    • In 1870 the highest and lowest shares of the National Income taken by the state in the example countries was 13.7% (Italy) and 7.3% (USA).
    • In 1960, 51 years ago,  the figures had increased to 35.7% (Austria) and 27% (USA).
    • By 2009 these figures show France was spending 56%  whilst the USA was spending 42.2%.

    Why does this matter? … It matters because the financing for government “spending” can come from only four sources.

    Ultimately therefore, Government expenditure directly translates to taxation.

    There is no escape from this; other than by Governments deliberately defaulting on loan obligations or being bailed out by others. (Greece, Ireland & Portugal are all in this unhappy situation where sovereign default is becoming increasingly likely – If this were to happen, the debt is simply transferred to the lender and, ultimately to the taxpayers of the lending countries).

    Sadly, individual taxpayers can seldom, if ever, influence Government “spending” and so are trapped into a long-term prospect of ever increasing taxation and/or reduced services.   They can however take steps to reduce the tax burden on their companies and, with planning, their personal tax burden.

    We specialise in providing structuring advice to clients (and their companies) so that their business is conducted from low tax jurisdictions, and that full advantage is taken of tax treaties and using tax code anomalies to minimise taxation.  We can also assist clients to relocate to more tax friendly countries.   We are a firm of Accountants and Company Managers with long experience in this field and believe that client privacy is of paramount importance.

    Please do not hesitate to contact us using our Contact page for more information on the above or any other aspect of our services.