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For instance, let us mentions a few words about...
ESTABLISHMENT OF COMPANIES IN CYPRUS
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According to the Law: An Offshore company is a company which has its base in a foreign country and which, according to the country's legislation, operates exclusively in other countries and enjoys a particularly favourable tax treatment.
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Art.5 par.7 and 14 of the Greek Law 3091/2002 states that the amortization of firm assets, which are purchased from an offshore company, is not deducted from the gross income. Moreover, the expenses an enterprise makes in order to buy goods and services from an offshore company, as well as the fees that the enterprise pays to the offshore company for the usage of its technical help, brands, methods etc. are not deducted from its gross income.
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Art.15 par.1,3,4 of the Greek Law 3091/2002 states that companies with real rights- ownership or usufruct-on real estate in Greece pay an annual tax of 3% of their value. The following enterprise categories are exempted from the regulation, provided that they have their seat in Greece or in any other EU country: a) Limited Companies with personal shares, b) Limited Liability Companies with personal corporate shares, c) Limited or General Partnership with personal corporate shares.
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Offshore (non-EU) companies are also exempted, provided that a convention of administrative assistance on the fighting of fraud and tax evasion has been signed with the country of their base.
THE ARRANGEMENT FOR
CYPRIOT COMPANIES
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Companies with foreign shareholders, registered in Cyprus, are not offshore, on the grounds that: a) they also operate in Cyprus b) they do not enjoy any more favourable tax treatment.
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From 1/1/2003 onwards, the discrimination between offshore and inland companies in Cyprus has vanished. There exists only one company type, which may have native or foreign shareholders, or both. From 1/1/2003 onwards, all Cypriot companies have the same taxation factor-10% on their profits. This means that the expenses spent by enterprises on Cypriot companies will be deducted from their crude income. The amortization of firm assets will be deducted as well. Where there is possibility for a Greek investor to establish in Cyprus a company which under some circumstances will be taxed at 4,25 % only.
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On May 2004 Cyprus became a full EU member, which means that the art.15 par.3 of the Law 3091/2002 can be applied to Cyprus, so that the country is exempted from real estate taxation.
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Cyprus and Greece have signed a convention on the fighting of fraud and tax evasion.
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Moreover, Cypriot companies have personal shares, so anyone can search at the state archives, Companies' Department, and find the person who is the final beneficiary.
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