Real Estate Companies
Such companies can be used very advantageously for property management, especially in conjunction with the Cyprus’ Double Tax Treaties and the EU Directives.
The structuring of ownership through a Cyprus Company can reduce capital gains, transfer or stamp duties, and inheritance taxes; and simplify a variety of other complex high-tax country issues.
A Cyprus IBC can own Real Estate property both in Cyprus and in other countries including the beneficial shareholders’ country of residence.
The Cyprus Company’s beneficial shareholders that own the property can sell its shares instead of the property. The property’s legal ownership has not changed, so all stamp duties and transfer duties in the property’s jurisdiction are avoided.
The gain on the disposal of the Cyprus Company’s shares is tax exempt in Cyprus (there may be a taxable gain only if the property is situated in Cyprus).
EU Anti - Avoidance Measures
The use of Cyprus Entities is recommended especially for EU property where there are strict anti-avoidance measures in force (Portugal, Greece, and a number of other EU Member States). Indicatively, in Greece a special 3% annual tax on the property’s ratable value is levied if the property is owned by a non- EU offshore entity!