Europe includes a number of countries that offer an advantageous tax system in terms of income taxation and other taxes for companies. One popular example is Cyprus, although there are more countries in Europe with similar characteristics. Foreign investors will often seek out the most suitable jurisdiction for their taxation purposes and the ones that offer a good overall business environment. We look at some of the attractive offshore countries in Europe and their main policies for reducing corporate tax or for offering special tax incentives.
Ireland
Ireland has a low corporate income tax rate and foreign investors have access not only to an attractive taxation regime but also to a welcoming business climate. The country has successfully managed to combine its low taxes with efficient policies and the creation of the International Financial Services Centre in Dublin where activities in this business sector benefit from even more advantageous tax rates.
Luxembourg
Companies in Luxembourg have access to a low corporate income tax rate, however, the small country is primarily known for its investment vehicles, such as the unregulated collective investment schemes. The fact that some of the companies can be used as vehicles for investment and international tax planning makes the Grand Dutchy and option for many foreign investors looking to minimize their business taxes.
Cyprus
Offshore company formation in Cyprus is attractive for foreign investors because of the low tax rates and the numerous double tax agreements. The country’s unique location at the crossroads between Europe and the Middle East and the fact that it is an EU member are two other notable characteristics. The Cyprus Investment Firm is a business entity type designed for companies in the financial services sector that benefits from an advantageous tax regime. The country is a preferred location for investment fund domicile and for fund management specialists.
Isle of Man
The Isle of Man is not only one of the most reputable offshore countries in Europe but also in the world. The country is a financial center and investors benefit from a special investor protection scheme. It’s most attractive feature is the fact that resident companies are generally tax-exempt. A tax of 10% applies when the annual profits which exceed a certain amount.
This article is just a summary of some of the most popular countries in Europe that can also be considered offshore centers. We kindly advise you to seek out further information about the incorporation requirements in these countries.
A team of European offshore company registration experts can help you understand the particularities of these jurisdictions and all of the tax and business benefits they offer.
