BVI company + Bank of Cyprus account

[KorolegOleg]

Dear All,

I am going to set up a BVI offshore company with a corporate account in Bank of Cyprus.

BVI jurisdiction has zero tax and there is no need for accounting/audit.
However, if I will have an account in Cyprus, would I have to pay some taxes or I can open account in any World bank and the BVI conditions will be always remaining the same?

Kindly advise, thanks in advance!

 

[mnschwarz]

Firstly, most here will advise against BVI these days. They've been changing their⁣ requirements and both privacy and pure hassle of dealing with them has gone downhill. That⁢ being said, your tax requirements depend more on your residency (usually) than on the company︀ jurisdiction; and certainly not on where you bank. Your choice of bank may affect the︁ reporting to your home country (AEOI) but it isn't a condition to be taxed.

 

[KorolegOleg]

Thank you for your feedback.

What could you personally advise? Which classic offshore⁣ jurisdiction is the most viable nowadays?

 

[mnschwarz]

Theres no one size fits all.‍ But if BVI came up on your radar, you may want to look in to⁠ Belize or Seychelles.

 

[KorolegOleg]

Many thanks buddy for your kind assistance!

 

[JohnLocke]

Seychelles and Belize are cheaper and easier to setup.

 

[Ready to discuss]

As per my understansing the owner of the bank account is a company/corporarion. A Cy‌ company needs to justify the reason receives the money.

Possible reason the money deposited for‍ the following possible reasons:
a) To earn interest.
b) To provide loans to other parties⁠
c) Both of a and b.

In all cases if the company will be considered⁤ as tax resident in Cyprus, the company has tax obligations.
In addition additional cost to⁣ keep the company active exist.

The company can receive money as follows.
Case a) Issue⁢ of shares at premium
Case b) Receive money as loan payable

Be carefull:
In case︀ (a) you can receive your money if you close the company. In case a, if︁ you decide to receive money from you bank account, it will be conisdered as loan︂ receivable. Since that amount were deposited into Cy bank account (as equity finance and not︃ as loan payable) no interest expnese exist. At the same time tax authorities will tax︄ you on a deemed interest income (for the money withdrawn from the bank) and since︅ no interest exist the company will be exposed to high tax.

Therefore before you will︆ use the Cy company you need to consider if you will deposit your money for︇ a long period and withdrawn them once or your will you use the bank for︈ various transactions.

I hope I am clear.