There are several reasons why Belize emerged as a popular place for people worldwide to form offshore corporations. Some of these reasons include the following:
Former British Colony:
As a result of over 80 years of British rule, English is the official second language (after Greek) and English Common Law prevails as its legal system.
Having been a member of the EU since 2004, gives Cyprus credibility as a safe place to incorporate.
Its location on the Eastern Mediterranean with short flights to Greece, Turkey, Israel, Lebanon, and Egypt makes it an ideal point to conduct business in these regions.
Low Corporate Tax Rate:
Cyprus has a low Corporation Tax Rate, which is one of the lowest found anywhere in the European Union at a 12.5% rate.
The minimum requirement is only one shareholder to incorporate along with one director where either or both can be of any nationality and reside anywhere in the world.
Ideal for a Holding Company:
Cyprus is well known for being a jurisdiction whose taxes are beneficial for holding companies. In addition, there are no controlled foreign company (CFC) regulations, allowing for greater freedom of the formation and actions of corporations as holding companies.
No Capital Gains Tax on Securities:
Cyprus is a popular place for security traders to maintain offices, and there is one reason for this. In Cyprus, corporations do not need to worry about inward or outward taxation dividends or a Capital Gain Tax (CGT) on security sales.
Double Taxation Treaties:
Cyprus has over forty double tax treaties (DTT) connecting it safely to other countries and ensuring foreigners owning Cyprus corporations will not pay double taxes on the same income to Cyprus and their home countries..