Cyprus Offshore Account

Cyprus offshore accounts are held in offshore banks located in Cyprus and are governed according to British standards. Cyprus offshore accounts are held in banks that are reputable and have received –AAA ratings. Offshore banks in Cyprus provide a secure environment for offshore accounts in Cyprus because of the laws and standards that make Cyprus a secure and regulated offshore jurisdiction.

As a member of the EU, Cyprus was required to sign to the UE Savings Tax Directive which established a uniform information exchange and withholding tax regime throughout EU member countries. The Tax Directive, however, is not applicable to people that do not reside in countries that do not belong to the EU and corporate entities. As a result, nationals from other EU countries with Cyprus offshore bank accounts face the risk of having to pay withholding tax on the interest and other monies earned on their offshore accounts in Cyprus. This means that rather than setting up an offshore bank account in Cyprus, EU nationals may prefer look at keeping their offshore accounts in other offshore jurisdictions that do not belong to the EU or have not been required to adhere to the Tax Directives because of their dependent status with EU countries. It is important to note however, that most dependencies of EU countries would have only opted for one of the two options, i.e., either tax withholding or information exchange.

Nevertheless, the EU Savings Directive does not jeopardize the privacy with which the banking transactions that Cyprus offshore accounts holders are treated. The payments made to the respective EU tax authority from these offshore accounts in Cyprus are done in bulk and as a result ensure that the offshore account holder’s identity remains protected and anonymity is maintained. In other words, confidentiality and offshore banking privacy are not put at stake since withholding tax is deducted without reporting the client’s identity.

Put aside the former, a Cyprus offshore account provides its owner with a vehicle for conducting very flexible baking transactions with the availability of online banking facilities that grant access to account information. Bank card facilities also offer easy payment-processing from offshore accounts in Cyprus and enable people to make access funds from any international ATM service. International business is made easy as people traveling frequently to Europe are given access to funds that are kept within Europe itself in an offshore account in Cyprus and assists in building confidentiality in European based business partners and establishing a European banking presence.

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