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Guide to Buying Cyprus Property Through a Company
Using a company in Cyprus to purchase your Cypriot villa or apartment, or
several if you are an investor, can be a very tax efficient approach.
After recent tax changes Cypriot companies attract a corporation income tax
rate of 10% and a Capital Gains Tax of 10% also. Unlike personal taxation,
which is low but not as low as corporation tax, you will not have any additional
tax to pay in the UK unless you draw the income or capital gain from the Cypriot
company. If you retire to Cyprus you can draw the money at personal Cypriot
rates of tax and if you are an investor you can reinvest the profits into further
real estate with no additional UK tax due.
Setting up a company in Cyprus can cost you several thousand pounds if you
do it with a UK formation agent but setting one up in Cyprus can cost less
than £1000 and indeed, Assetz has negotiated a free company set up with
every property purchased from some developers.
This information is intended as a general guide and you should not act nor
prevent acting in any way based upon this information without seeking further
detailed legal and tax advice.
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