As a result of the monetary change in Cyprus to the Euro January 2008, all companies in Cyprus whose share capital was denominated in Cypriot pounds were required to convert their share capital into euro. They were required to pass a resolution in a general meeting to change their share capital to euro and suitably amend their Memorandum and Articles of Association. This is fairly straightforward and can be talked through by Cyprus financial services advisors. Notice of the change must be filed with the Registrar of Companies, who has agreed to waive any fee for the registration. The conversion to euro must be filed with the Registrar of Companies latest by the end of 2008. If any company is late, the Registrar will not accept any resolutions unless it is accompanied with a Court order authorising the conversion. Cyprus is an attractive place for direct investment and setting up. Indicative of this are the tables with new registrations set-out below.

The strategic location of the island, its excellent climate, the well developed infrastructure and the plentiful supply of high quality, well trained labour are some of the advantages Cyprus has to offer. In addition, the favourable tax regime makes Cyprus an ideal location for manufacturers, especially those with Middle East and north African export activities. Investors aim in maximising after tax return on investment. Therefore, investment structures which have the least tax leakage are preferred by investors and are recommended by the advisors. As such, a Cypriot investment vehicle can in many cases collect income, which is a charge against high tax income.

Foreign withholding tax is eliminated or reduced under double tax treaties or under EU directives. The rate of tax in Cyprus is low. The income can then be repatriated in any form the investor wishes without any Cypriot withholding tax. This investment vehicle is suitable both for EU inbound or outbound investments. There are no investment activities that are inappropriate for the Cypriot tax environment. However, there are investment activities which are ideally suited to Cypriot tax environment such as: holding companies, finance companies, royalty companies, investment funds, south Europe, Middle East, central and Eastern Europe head office operations European enlargement and the accession of Cyprus opened up a new gate to investors. Cyprus is no longer just the traditionally strong link of investments in and out of Central and Eastern Europe and Russia, but it is also a strong connecting link of investments in or out of the EU through financial services advisors.

Oneworld ltd are financial services advisors specializing in offshore financial services and Cyprus financial services, business advisory, corporate finance, accounting and payroll, VAT and customs.

International trusts are governed by the International Trusts Law of Cyprus. International trusts are not taxed in Cyprus.

Tax aspects
Cyprus? trusts enjoy important tax advantages, providing significant tax planning opportunities to interested parties. The following advantages are indicative of the possible options for tax minimization: All income, whether trading or otherwise, of an international trust (ie a trust whose property is located and income is derived from outside Cyprus) is not taxable in Cyprus Dividends, interest or other income received by a trust from a Cyprus international business company are also neither taxable nor subject to withholding tax provided that the beneficiaries are not tax resident in Cyprus. Even though a trust with shares in a Cypriot company may not be an international trust, the exemption relies on the fact that Cyprus tax is imposed only on Cyprus residents. As the beneficiaries are not residents of Cyprus, no tax is imposed on the distributions made to the trust Gains on the disposal of the assets of an international trust are not subject to capital gains tax in Cyprus An alien who creates an international trust in Cyprus and retires in Cyprus is still exempt from tax if all the property settled and the income earned is abroad, even if he I a beneficiary An international trust created for estate duty planning purposes would not be subject to estate duty in Cyprus.

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