Why Ireland is now a better option than Cyprus for Offshore Company Formation
Cyprus has had a history of being the center of attention for countless offshore entrepreneurs. This was a result of its promising economy at that time along with several advantages of low tax rates, convenient corporate banking system, etc. Unfortunately, the economic importance of Cyprus has recently experienced deterioration due to a radical, financial crisis in the island nation. Consequently, Cypriot banks resorted to a rather forceful imposition of bank levy on deposit amounts worth EUR 100,000 or more. Needless to say, the blow of the bank levy was greatly felt by most offshore investors and owners of Cypriot companies. This has made many interested investors to realize the importance of straight away establishing base in Europe, as opposed to a location with a relatively recent membership in the European Union.
It is definitely a demanding decision to finalize a location for company formation. As such, there are several attributes which must be thoroughly assessed. Foreign entrepreneurs cover a lot of ground in their research for company formation alternatives. Subsequently, they observe that certain locations generally offer prominent benefits over most other countries.
Incidentally in Europe, the Republic of Ireland endows new business owners with sought-after benefits. These advantages are also found to be rewarding for various types of business structures.
Ireland. A Business-Friendly Region
The island of Ireland retains impressive economic indicators for international investors. Although it is one of the small economies in Europe, Ireland continues to be an open economy. In terms of trading options, there is a wide range of product categories which are exported:
- Pharmaceutical Products
- Technological Equipment
All in all, the Republic of Ireland is a highly stable location in Western Europe. This refers to a stable political system as well as a strong legal system. Along with these benefits, Ireland has also been a member of the European (Union) for about 40 years. Even more so, as one of the Euro zone member states the official currency of Ireland is Euro.
Corporate Tax Rates in Ireland
A corporate tax rate of 12.5% on business profits is considered to be lucrative on its own. At the same time, comparison of this tax rate with those of several other countries highlights the importance of Ireland for company formation. For example, the tax rates from a few countries are mentioned below:
United Kingdom – 26%
Switzerland – 21.17%
France – 33.33%
Germany – 30.20%
Double Taxation Treaties
There are more than 60 countries with which a double taxation treaty has been signed by Ireland. In these double taxation treaties, Ireland has included the following types of taxation:
- Corporate Tax
- Capital Gains Tax
- Income Tax
When it comes to an Irish company formation, global entrepreneurs do not restrict their choices to new businesses only. In fact, Ireland is an ideal choice for relocated businesses as well. Therefore, Ireland is not only a suitable alternative for those businessmen who were intending to head out to Cyprus for company formation. It must also be considered by existing Cypriot businesses to explore Ireland as a relocation alternative without the banking hassles being currently faced in Cyprus.
For more information on how to incorporate an Irish company today, please don’t hesitate to contact us!