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"Cyprus is not a tax haven and not considered to be an offshore jurisdiction. All company formations and entities incorporated in Cyprus are considered onshore. This enhances Cyprus' position as a credible platform for investments, tax planning and international banking. An ideal investment gateway."

What is an offshore jurisdiction and why is Cyprus actually considered onshore, but still an ideal investment gateway to the EMEA region?

It is very important to point-out that Cyprus is not a tax haven nor is it considered to be an offshore jurisdiction. It is simply an internationally recognised financial centre that offers various company formation advantages, primarily by being an ideal platform for investments and growth, particularly to the EU and EMEA region, as well as by offering an efficient corporate taxation solution. Cyprus company or entity formations are considered as onshore, enjoying the same benefits (such as in legal structure and taxation) as normal resident companies in Cyprus. They also of course enjoy interrelated benefits with other European Union companies and markets, i.e. a Cyprus company is also an EU company. Finally, Cyprus has met all EU directives and is on the OECD white list of territories meeting international best tax practice.

What does the term "offshore" mean anyway?

The term offshore company and investment jurisdiction is commonly misinterpreted, manipulated, or simply misunderstood; often with negative connotations and associated only to so called 'tax havens'. This is simply not always accurate. The term offshore is quite ambiguous. Typically, it implies activities outside of your own jurisdiction, or away from home shores in another jurisdiction; jurisdiction meaning a sovereign territory, country or region within a country that has its own legal structure and governing body. So in reality, "offshore" activities take place when you do business anywhere else in the world outside your own home country. And indeed they do in almost every situation of international business and international relations. Thus, such business/trade/activities can, and do benefit the global community and progress.

Indeed, an offshore corporation/company does not necessarily have to be located in what some might think is a 'tax haven'. Theoretically, an offshore company can exist in absolutely any country or jurisdiction in the world, although this does not necessarily mean it will make use of better company formation and tax benefits, and might actually (commonly) be subject to high or higher corporate tax rates. So there are various reasons for considering such business activities outside your home country. Here is the main reason:

Such activities might mean the company does not pursue its traditional economic and business activities in the given territory. More specifically, an offshore company does not obtain (much) revenue from the country of incorporation (registration), but rather from other markets around the world. It is usually registered here for tax planning efficiency (saving tax money) and then as a platform for reinvesting – investment is used as an economic resource to motivate growth by maximise savings/profits and in turn also aiding the company's home country of operation. I such location there might also be easier international operations, lower labour costs, good infrastructure, greater freedom from state regulation (business friendly government), and placement of funds in accounts out of the country.

And this is exactly the meaning of the word "offshore" in this website platform – a channel for professional services abroad and encouraging global expansions, trade, investments and growth.


To put it simply, if a company was endeavouring to invest and grow in say the European Union, or elsewhere in the EMEA region, Cyprus would offer an ideal location for setting up a company. Ideal because it offers the most attractive taxation system in the region, therefore monetary savings – lowest corporate tax rate in the EU (12.5%) and lowest non-investment jurisdiction in the world – but also because of the following key points:

  • Cyprus is in the EU and eurozone, but also a British Commonwealth country
  • Proximity – Cyprus is at the centre of the EMEA region (good for travelling, time zone, and culturally relevant)
  • Cyprus is politically stable, has a very business friendly government and healthy geopolitical relations
  • Cyprus has excellent infrastructure for servicing companies, especially with a highly educated, experience and skilled workforce, as well as relatively low labour costs
A company offshore

Read more about the benefits of setting up a company offshore, the differences between a tax-haven offshore jurisdiction and a credible financial centre (more typical full fledge jurisdiction), and why you should incorporate your company or entity in Cyprus. Click here.

Investment Globality via Cyprus

Read more about Cyprus as a financial centre, and why it is fast becoming one of the world's most popular jurisdictions for setting up an international company, global tax planning and banking offshore. The most reliable, practical and credible location for global corporate investment activities. Click here.