Gibraltar: the last European offshore jurisdiction, or are there any alternatives?

In the context of constant changes in tax legislation and tightening rules in the European Union (EU), many companies seek alternatives for tax optimization. While Gibraltar has long been considered a tax haven, it is not the sole option. Malta and Cyprus are among the primary alternatives to Gibraltar in recent years.

Malta

Malta, as an EU member, which boasts a stable economy. It gives businesses a reliable foundation for growth and access to the broader EU market. Key advantages of Malta for entrepreneurs include its tax system, which features a low taxation regime for foreign companies, including:

• Taxes for foreign companies start from 5%.
• Possibility to obtain licenses for providing financial services within the EU.
• Favorable conditions for cryptocurrency projects and blockchain startups, with Malta being one of the first to introduce regulation in this sphere.

A popular form for registering a business in Malta is a private limited liability company (Ltd). With its favorable tax climate, convenient location, and openness to innovation, Malta offers extensive opportunities for conducting business.

Cyprus

Cyprus, like Malta, is an EU member, granting access to the prestigious European market. Cyprus maintains liberal regulation for entrepreneurship with minimal administrative barriers. Even today, Cyprus remains a popular destination for offshore activities due to low taxes and a straightforward registration process. It's benefits are as follows:

• Corporate tax is 12.5%, and tax for income from intellectual property is 2.5%.
• Dividends are not subject to tax, and there is no capital gains tax.
• Possibility to obtain offshore status while meeting specific conditions.
• Developed network of double tax avoidance agreements, with Cyprus having agreements with over 60 countries.
• Procedures for creating and registering companies in Cyprus are relatively simple and fast.

A popular company form for registration in Cyprus is a private limited liability company.

In conclusion, thanks to favorable tax regimes and flexible business structuring options, Cyprus provides attractive conditions for international companies while maintaining stability and reliability as an EU jurisdiction.

When choosing a jurisdiction, companies should consider current legislation and potential future changes. We recommend consulting with legal professionals at IT-OFFSHORE to avoid potential legal consequences and ensure compliance with the laws.