What are the costs associated with an IBC company in North Cyprus?

We do not suggest IBC as in North Cyprus they are called ‘Offshore Companies’ which tends to have a bad reputation due to recent scandals. Instead, we suggest setting up a Free Trade Zone Company which is the most popular choice. An FTZ company costs 5000 Euros to set up and a paid-up capital of 50,000 Euros. The start-up capital can be withdrawn after incorporation.

How long does it take to incorporate a company in Northern Cyprus?

4-6 weeks

What are the tax rules for foreign income in Northern Cyprus? How will my worldwide income be taxed?

By law, foreign income /foreign company is treated in the same was as the native company.  As long as you generate income from outside Northern Cyprus you pay no corporation tax or no income tax for your earning.

There is no tax information exchange treaty between Northern Cyprus and any other country in the World. This means that your tax information is not shared with any other jurisdiction. All documents required by government officials are offline so there is no chance that your confidential information will be shared for investigative purposesas this has been expressly forbidden by the local Tax law (Vergi Usul Yasasi, Madde 6) . We, as accountants are  also forbidden to share your information with anyone outside the North Cyprus.

How long does it take to open a company bank account in Northern Cyprus?

 

Same day after incorporation. We just need you to visit Northern Cyprus for one day and we can give you corporate rates at select Northern Cyprus hotels.

When can I withdraw the capital required for company formation?

Within 7 days following the incorporation.

 

Can I incorporate a company which only provides online services in North Cyprus?

Yes- most of our companies are ecommerce startups and technology conglomerates e.g. IT consultants, crypto exchanges, JavaScript developers etc.

 

What are the requirements to open a FTZ company in Northern Cyprus?

• Proof of address
• Proof of identification
• Clean criminal record

What is the level of corporate Tax in Northern Cyprus?

For Free Trade Zone Companies, corporate tax is 0%.

Is it necessary to hire a native director?

No, this is not a legal requirement. However, we provide proxy director and proxy shareholder services if this is what you require.

Can foreign owners have 100% shareholding?

Of course, you just need to have 2 shareholders by law. Northern Cyprus uses Fasil 113, you can read the English, we have the same legislation with the UK companies law

What is the cost of virtual e-office per month in Free Trade Zone Company?

No additional cost, we can give you an address and also a virtual phone number

Can apply for residence permit?

We can apply for residence permit in Northern Cyprus on your behalf.

With the residence permit you can get an individual bank account and obtain Visa and Mastercard upon request. With this, you can make and receive payments for personal purposes only on Euro, GBP, USD and Rubble.

Also the residence permit allows you to invest in property in Northern Cyprus ( up to 5 properties per person).

North Cyprus is situated in the Mediterranean in a unique location with close proximity to all European, Asian and African continents. It borders Republic of Cyprus in the south which is an EU member state and in the North, Turkey is about 70 km away. Thanks to this ideal position North Cyprus offers great access to several important markets: Turkey, the Middle East and the EU.

Tax Advantages

By setting up a company in the North Cyprus you also take advantage of several tax benefits unique to the country as well as utilising the market potential of both the EU and the Middle East.

• The effective rate of corporation tax is 23.5 % (this , in practice, is 15% income tax deducted at source and an additional 10% Corporation Tax on the remaining amount). No withholding tax for dividends paid to shareholders
• 20% of revenue from goods exported outside of North Cyprus is tax exempt
• Free Trade Zone Companies : Exempt from value-added tax and corporation tax
• Offshore companies: Exempt from value-added tax and 1% corporation tax rate is applied

Money and Banking

The official currency of North Cyprus is the Turkish Lira. However, Euros and British Pounds are very widely used and any foreign currency can be used in transactions and contracts.

There is a strong banking system in Northern Cyprus which is overseen by the independent institution of North Cyprus Central Bank. Banks are free to keep foreign currency, accept foreign currency savings and engage in purchase and sale of foreign currenc

Legislation

The Companies Law in North Cyprus is very similar to the Companies Act 1948 of the UK and hence offers an easy-to-understand framework for doing business in North Cyprus.

Climate

North Cyprus is famous for its premise of “at least 300 sunny days within a single year”. Therefore, as well as the financial attractiveness of the destination, it sure is one of the most pleasant countries to do business in.

Culture

The laid back attitude of the Cypriot people, their famous hospitality and respect for others offer an ideal climate to set up and run a successful business in North Cyprus.