Cyprus company holding brokrage account

[kyler565]

Cyprus is a little island country part of the EU they have 19% Vat and I have heard many Russians (think dividend stocks) use Cyprus

but im wondering if it would be a good option to setup a company or a trust in Cyprus to hold a brokrage account to hold some safe dividend stocks. I understand Cypres has Vat but this should not be a problem since I will have no sales or sales of services. And I belive there is accounting that has to be done yearly ..but for a simple brokrage acount shouldn't be to painful (I hope)

I welcome feedback on Cyprus .my first idea a panama foundation was seen as to complacated of a structure . now im looking at Cyprus. I welcome any feedback on Cyprus. My funds are ligit and have proff (about 1.5 -2m)

 

[SoNewToAllShit]

You want to speak with a lawyer, why not @CyprusLawyer101 , @CyprusLaw or @CyprusBusiness

 

[CyprusLaw]

kyler565 said:
Cyprus is a little island country part of the EU they have 19% Vat and I have heard many Russians (think dividend stocks) use Cyprus

but im wondering if it would be a good option to setup a company or a trust in Cyprus to hold a brokrage account to hold some safe dividend stocks. I understand Cypres has Vat but this should not be a problem since I will have no sales or sales of services. And I belive there is accounting that has to be done yearly ..but for a simple brokrage acount shouldn't be to painful (I hope)

I welcome feedback on Cyprus .my first idea a panama foundation was seen as to complacated of a structure . now im looking at Cyprus. I welcome any feedback on Cyprus. My funds are ligit and have proff (about 1.5 -2m)
Click to expand...

Hi,

Will PM you about this to discuss.

SoNewToAllShit said:
You want to speak with a lawyer, why not @CyprusLawyer101 , @CyprusLaw or @CyprusBusiness
Click to expand...

Many thanks for mentioning me, much appreciated

 

[luap]

Perhaps the easiest way to do this in Cyprus is register for the non-domicile program, and invest in your own name. You'll have little to no accounting costs or taxes.

 

[CyprusLaw]

luap said:
Perhaps the easiest way to do this in Cyprus is register for the non-domicile program, and invest in your own name. You'll have little to no accounting costs or taxes.
Click to expand...

Hi luap, just to clarify the non dom status offers some tax incentives for example no SDC/tax on dividends you receive through a company. It does not exempt you from taxes or social insurance as an individual.

 

[CyprusBusiness]

luap said:
Perhaps the easiest way to do this in Cyprus is register for the non-domicile program, and invest in your own name. You'll have little to no accounting costs or taxes.
Click to expand...

I will have to agree with @CyprusLaw .

Just to add, in case you are filing a personal tax return in Cyprus there is a special section declaring income from securities. This section requires to insert any income on trading in financial instruments/securities. Such income is tax exempt but the section requires you to include any GHS withheld amounts. As such, the form will automatically calculate a deduction of 4% on such income (for self employed)

The social insurance office also will be notified that no social contributions were deducted and the exposure here would be to incur a total of 19.6% SIC and GHS (15.6% + 4%) on total trading gains.

Thus, the most optimised way to proceed is by trading through a company.

 

[ElBotellon]

CyprusBusiness said:
I will have to agree with @CyprusLaw .

Just to add, in case you are filing a personal tax return in Cyprus there is a special section declaring income from securities. This section requires to insert any income on trading in financial instruments/securities. Such income is tax exempt but the section requires you to include any GHS withheld amounts. As such, the form will automatically calculate a deduction of 4% on such income (for self employed)

The social insurance office also will be notified that no social contributions were deducted and the exposure here would be to incur a total of 19.6% SIC and GHS (15.6% + 4%) on total trading gains.

Thus, the most optimised way to proceed is by trading through a company.
Click to expand...

I have read that is possible for people being employed and working abroad (but within EU) be exempted from GHS presenting S1 (social security benefits) of the other EU country. Is this doable?
I am asking this because even on dividends from CY company there could be GESY contribution (which would be better to avoid where possible).

here the form
https://www.mof.gov.cy/mof/tax/taxd... payment of GeSY Contribution.pdf?openelement

 

[CyprusBusiness]

ElBotellon said:
I have read that is possible for people being employed and working abroad (but within EU) be exempted from GHS presenting S1 (social security benefits) of the other EU country. Is this doable?
I am asking this because even on dividends from CY company there could be GESY contribution (which would be better to avoid where possible).

here the form
https://www.mof.gov.cy/mof/tax/taxd... payment of GeSY Contribution.pdf?openelement
Click to expand...

Yes this valid. The S1 form grants you an exemption from GHS in Cyprus. Also in the personal tax return there is a specific section where you include S1 reference number

 

[SoNewToAllShit]

How can a holding be a brokerage, just curious ?

 

[CyprusLawyer101]

SoNewToAllShit said:
How can a holding be a brokerage, just curious ?
Click to expand...

Its basically a holding of a brokerage account. I.e. a company opens an account with a broker and does trading / investing

 

[SoNewToAllShit]

okay, and that activity you can do in a Holding company without troubles?

 

[CyprusLawyer101]

SoNewToAllShit said:
okay, and that activity you can do in a Holding company without troubles?
Click to expand...

Sure! A holding company (depending on the jurisdiction) can be a regular limited company. So for example a Cyprus ltd company can be used as a trading company or a consulting company or a holding company. Its characterization is merely a description of what it is being used for. In this case the characterization of a company holding a brokerage account could be accurate, since in essense its a company holding assets , maybe shares in other companies or bonds etc. I will be pleased to answer any follow up questions.