Affiliate company setup in Cyprus!
Setup a Cyprus company as an E gaming affiliate.
Cyprus company formation might be the best structure for your E gaming Affiliate business.
Enquire with us on a solution for your Affiliate business as well as structuring your personal tax affairs as well.
Cyprus company formation for E gaming Affiliates
E gaming affiliates often look and research what is the best way to structure their Business model.
The corporate and banking environment of E gaming affiliates is indeed volatile and susceptible to Banking, Tax and legal legislations. There have been many horror stories that companies were setup in different jurisdictions and bank accounts in banks that do not accommodate this type of business.
That’s why you hire an expert. In that case us. We can advise you on the best structure with the right banking solutions and additionally equip you with a fall back strategy if things go wrong.
What separates us form the rest is that we view you holistically as an individual. What do we mean by that? We consider your residence, banking arrangements, place of tax residence and where we can optimize not only your tax bill, but also your operating model, business opportunities and quality of life.
Setup your e gaming affiliate company in Cyprus with confidence. Hire an expert to advise you on a holistic approach rather than a one size fits all.
The structure
Online gambling affiliates can take advantage of the Cyprus Tax system and the plethora of other benefits that the island has to offer.
E gaming affiliates can setup their company in Cyprus as well as employ the necessary skilful people to help them with their enterprise.
What are the benefits of a Cyprus Company formation for online gaming affiliates in Cyprus? Well first of all it is the friendly corporation tax, one of the lowest in the EU. At 12.5% on profits. If the business incurs losses in the first year it can carry those losses indefinitely to be netted off with profit in the later years!
Another key benefit? It is the jurisdictional one!
Setting a Cyprus company means a foothold in the EU. That can be important with banking as we will discuss later on.
Other benefits? Many to list!
Cyprus companies enjoy no capital gains tax when being disposed. The double tax treaty network of Cyprus is substantial with favourable tax treaties especially with other fellow EU. Counties and the Americas.
Cyprus Tax does not levy dividends for Individuals not resident in Cyprus. That is a big plus! However given your place of tax residency there are ways where we can lower your effective tax rate even more. So read on!
Incorporating an E gaming Affiliate Cyprus company
That is the easy part you chose a name and in 3 weeks you are ready to start you e gaming affiliate company.
Our office has a number of pre approved company names so if you are in a hurry then we can speed up the process.
What is important is that you need to have a Cyprus resident director (or the majority of the board of Directors of the Company are based in Cyprus) so that the Management and Control of the company is actually Cyprus. That’s very important.
Is Cyprus hostile to e gaming affiliate companies? No not at all. Unlike other jurisdictions offshore or onshore that is not the case.
If you need to hire employees for the company Cyprus has a skilled English speaking workforce that can help you and your online gaming affiliate business to take off. If you wish to hire from overseas, then there is no issue. Cyprus allows foreigners form other countries to work in Cyprus with no restrictions whatsoever. Both EU and non EU nationals.
In this article, I will go through some common solutions used by large gambling affiliates and pros and cons.
Banking for an e gaming affiliate company in Cyprus - an honest discussion on what banks are looking for and which banks should you avoid
Now here comes the part that needs more attention. Understandably a gambling affiliate does not offer gambling services. So you can assume that opening a bank account in any bank that you wish should not be a problem.
That’s not always the case.
The good news is that having a setting up a Cyprus company as an E gaming affiliate in Cyprus does solve a lot of the issues E gaming operators and affiliates face. Its EU, reputable, it can provide the necessary substance (Offices, Employees etc) and is not in an exotic island in the middle of nowhere.
An important factor setting up a Cyprus company as an E gaming affiliate in Cyprus is substance which is crucial for Banking purposes. You need an office or a flexidesk in order for banks to open you a bank account. Secondly you need to have employees. And a utility bill on the flexidesk/ office. Good news we can make that happen!
Where can I bank using my Cyprus company as an Affiliate?
Gambling-hostile jurisdictions should be avoided at all costs. I include those that their constitution and their banks risk appetite (or business model) do not accept. Fine no issue. Even if you manage to open an account as an E gaming affiliate then its only a matter of time before they throw you out. You would not want to happen especially if your Affiliate venture starts building up revenue form the Ads.
Operating under a company especially in the e gaming affiliate industry can be tricky. It can be great if you bank in the same jurisdiction as you incorporate. However, that is not always the case and this can be confusing to traditional banks (given that they accept your line of business). Moreover it is a cyclical and highly volatile world so you need to keep in touch with the latest trends in banking.
So where should I bank? Easy, Electronic money Institutions. They have taken the Gaming world by storm and they understand that every businesses have banking needs. Even if E gaming affiliates do not have to do directly with gaming us such and they direct traffic. Most of them are licensed in EU countries under their respective financial services authority so there is a great deal of assurance there.
As everything in life there is no one size fits all solution. It all depends on where your company is established, from which gaming jurisdiction you will be receiving funds from, which countries will you be targeting for Affiliate marketing, your place of tax residency etc. Lots of different variables.
Nevertheless that is where we step in. We analyse your variables and see what suits you and your new E gaming affiliate company better.
One thing is for sure though.
E gaming affiliate company incorporation does give you a good chance of getting a bank account than other offshore jurisdictions.
Opening a bank account (Traditional) an e gaming affiliate company in Cyprus
Not all hope is lost. If you prefer to bank in a “bricks and mortar” bank we can help you with that too.
But is wise you go through a professional intermediary like ourselves in order to minimize the chances of receiving a hard blown No for an answer.
Some Banks that accept currently e gaming affiliate companies setup in Cyprus wish to have you as their Client for your personal, wealth and other banking. Much like a relationship. So there is hope. And yes it is like give or take.
Tax residency in Cyprus as a Non Domicile Individual
So we managed to discuss about the structure of your E gaming Affiliate company incorporated in Cyprus, banking and what to look out for.
Next is your personal tax residency. Because even if Cyprus companies do not charge dividend tax on Cyprus residents; your country of residency may well do at a high rate.
Personally I find it difficult to comprehend how someone can stay in a remote tax free island for at least 183 days so that their tax bill is lowered. It just does not make sense. Yes its cool for the first two weeks maybe. But then I don’t think you are going to be happy.
For Cyprus things are different. There are two programs that can enhance your tax bill and make you as tax efficient as can be:
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Cyprus 60 day tax rule
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Non Domicile tax status
Cyprus 60 day tax rile allows you to become a tax resident of Cyprus for living at least 60 days on the island and not spending more than 183 in one place. So you will be taxed as a Cyprus tax resident taking advantage of the beneficial Cyprus tax system whilst not limiting yourself only in Cyprus.
The other Non Domicile tax status? Basically, if you haven’t lived in Cyprus over the last 17 out of 20 years you can get a beneficial tax treatments on your dividend tax. In other words Dividends that you claim from your E gaming affiliate company in Cyprus will be tax free and you will only need to pay NHS (National Health Service) contributions of 2.65%.
Bottom line? A good corporation tax rate of 12.5% , an effective tax rate of Dividend sourced from Cyprus at 2.65% and living only for 60 days in a EU country that has sandy beaches, excellent infrastructure, a skilled workforce and a great location to grow your business.
Sounds like a bargain to me.
Conclusion
Setting up a Cyprus company for your E gaming affiliate Cyprus makes financial sense. You can enjoy a favorable tax system whilst operating your company with great ease.
Bank account opening for E gaming affiliate is often difficult. However Cyprus offers an excellent jurisdiction to overcome those steps. Going through an Intermediary like us will greatly help you too. We can analyse your business and recommend which banking solution works for you.
Lastly consider moving yourself to Cyprus as it is a great family to live and enjoy personal tax benefits as well.
So what should I do then?
Get on a call with us! Or send as an email!
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