Free Port companies are exempt from Income and Corporate Taxes as long as they do not export into Northern Cyprus. They do not pay any taxes on their annual earnings.
Invoices issued by Free Port companies abroad are exempt from VAT. In addition, payments made abroad are not subject to withholding tax.
Free Port companies can freely transfer the profits they have made in Northern Cyprus abroad. There is no tax on the payment of the profit transfer abroad.
The notary approved passport or photocopy of identity card required from the founding shareholders are the documents of residence and criminal conviction to be obtained from the e-government. The amount of the paid incorporation capital is 25,000 Euros equivalent to Turkish Lira. This amount must be deposited in a bank operating in Northern Cyprus.
There is an application fee of 200 USD to be paid to the Free Port and Regional Directorate. There is also a registration fee of 2500 US Dollars, once after the application approval.
The corporate tax rate is 1%.
Withholding income tax rate is 0%.
The capital gains tax rate is 0%.
There must be at least two partners. We need a notarized copy of the shareholders’ passport, a recent electricity bill, a reference letter from a bank or lawyer, and a resume.
Shareholders do not need to go to Cyprus to establish the company. We can establish the company with the power of attorney given to us.
International trading companies can open a bank account quickly and easily. There is no residency requirement to open a bank account. A non-resident company director can open a bank account for the company in Northern Cyprus.
The director must travel to Cyprus to open the bank account because the director must sign the bank contracts in the presence of the bank director.
International banks are TEB (subsidiary of BNP Paribas), Garanti Bank (subsidiary of BBVA), Ziraat Bank and Isbank. Companies can open these banks with IBAN in USD, EURO and GBP.
Yes, banks have the most user-friendly and secure English internet and mobile banking. In accordance with the Banking Law, banks have IT security audits and penetration tests performed every year.