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Cyprus has managed to earn a reputation as not only a picturesque Mediterranean rarities, but also a major international business center. This country has become a haven not only for assorted commercial, industrial, holding, and brokerage company.

Creating your own brokerage company is a reasonable and cost-effective solution for discerning business in this matter. The development of such firms do not require the purchase of expensive heavy equipment, the presence of large-scale real estate and other major assets. The main thing for such businesses is access to global stock and currency markets, the presence the availability of high quality telecommunications infrastructure and highly trained staff.

Over the past 10 years, the industry of foreign exchange transactions has undergone cardiac change. so, if the US requirements for brokers and operations rules significantly complicate the Cypriot authorities to the contrary are moving in the direction of simplification of standards.

Even back in 2007 on the island were introduced «The Markets in Financial Instruments Directiv», which allows to harmonize investment transactions and work with a variety of financial instruments (including trading in foreign currencies in all member States of the EU. That is, opening a Cyprus brokerage company, you will get the opportunity to cooperate with not only the island’s customers and counterparties, but also residents of other European countries, as well as a chance to conduct transactions with the assets actually belonging to any EU country. Thus, the island brokerage company will give you access to the entire European market of investment services.

Key benefits of a brokerage company in Cyprus

The main objective of the brokerage firm, like any other business is making a profit, which not only affects productivity and the quality of decisions, but also all the associated costs. The latter include taxes and which can “eat” a weighty share of the profits. In the case of Cyprus, there is no such problem. As you know, this island is one of the mid-shore jurisdictions.

In the case of Cyprus, there is no such problem. As you know, this island includes a number midshornyh jurisdictions. As a member of the EU, the Cypriot government taxing all its residents and accurately monitors the completeness and timeliness of payments. That’s just their size is much lower than in most other European countries. Plus, in addition to the standard tax regime brokerage companies can apply for a number of fiscal incentives, namely:

  1. All proceeds received from the sale of forwards, futures and their derivatives and bonds, stock swaps, stock options and shares of investment funds is fully exempt from tax.
  2. The country does not have tax on interest, dividends and royalties. The same rule applies to income received from overseas branches and representative offices.
  3. The local legislation there is no clear requirements regarding the capitalization of the brokerage firm. So you can use not only its own but borrowed capital.
  4. There is no tax on capital gains, except for the 20% tax on income derived from the sale of island property or shares of the company, is its owner (on the condition that the company’s shares are not listed on any recognized stock exchange).

As can be seen from the foregoing, the island’s fiscal policy allows to to reduce the actual cost of doing business, so to open his own company in Cyprus for at least advantageous.

Recall that this island recently left crisis the EU list.

Note that the lion’s share of global brokers are now reoriented to the EU.

An equally important issue for brokerage company is the availability of highly qualified specialists. It is from them will depend on the speed and performance of the company. The Cyprus labour market is able to provide you with such specialists.

For more information about opening a company in Cyprus, please contact us by e-mail info@thatlawfirm.com