The need for economic substance of Cyprus companies.

In the evolving global business landscape, the concept of economic substance has become paramount, especially for jurisdictions like Cyprus that position themselves as attractive hubs for international business. The necessity for economic substance in Cyprus companies arises from a confluence of international regulatory demands, and the drive for maintaining Cyprus tax advantages.

Cyprus, as a member of the European Union, must adhere to EU regulations and directives aimed at combating tax evasion, such as the Anti-Tax Avoidance Directive (ATAD) and OECD Guidelines in order to maintain the tax benefits of a Cyprus resident company.

Company economic substance is therefore necessary in Cyprus for several key reasons, mainly revolving around compliance with international tax standards, maintaining tax benefits, and preventing tax evasion and avoidance, so the tax authorities so tax authorities of other countries may not dispute the tax residency of the Company in Cyprus.

Our Firm provides the following office facilities in our premises for real economic substance packages for Cyprus companies, with actual office space for rent, which may be shared with other businesses for cost effectiveness. 

In addition to our Telecom and IT package and support services, we offer a variety of services which can support your business locally and allow for efficient and professional handling of your company’s business. 

• Office space / Shared Office Space 
• Conference Room facilities 
• Telecom and IT support Services 
• Internet Access Services and WIFI

The content of the above article is to provide a general guidance for Substance in Cyprus. 

Specialized, tailor-made advice is given on each scenario and specific needs accordingly.

For your tailored made Substance solutions please contact Mr. Nasos Kyriakides at nasos@naklaw.com   and/or Mrs. Cleo Loizou Kyriakidou at cleio@naklaw.com  by email.