WHY GO OFFSHORE: CRITERIA FOR JURISDICTION SELECTION
Things to consider when choosing a jurisdiction

The first things to consider before choosing a location are the following:

• Economic and Political stability
• Infrastructure: The reliability, efficiency and the quality of service provided by the legal and accounting professions is of paramount importance in order to exploit to the maximum extent the opportunities offered by these offshore destinations.
• Banks: The efficiency of the banking sector and the speed with which funds transfers are executed as well as the financial credibility of the banks are fundamental factors for the smooth operation of an international business company.
• Communications: You must select a jurisdiction, which has a very good communication system otherwise it, will be very frustrating if communication links are not satisfactory.
• Time zone: It is convenient to choose a jurisdiction whose time zone collates with your own country's time zone.
• Reputation: Though a lot of jurisdictions are tax heavens with zero tax, it is not advisable to use these international business companies for trading purposes, as the invoices issued by these companies will be treated with suspicion by your own country's tax authorities and be ignored for income tax purposes. Furthermore tax heavens are considered with more reservation with respect to money laundering. In such a case it may be best to use a jurisdiction like Cyprus or Isle of Man where it is more plausible for an export company or a management consultant to operate from there as these locations are well known international business centers. Tax heaven jurisdictions can be used if the company will simply hold assets.
• Tax treaties: To take advantage of the tax incentives offered by the offshore jurisdictions, it is not enough for a jurisdiction to have low tax rates but also a tax treaty to avoid double taxation between the country from where the income was generated and the country of the beneficial owners. Cyprus is probably the best example.

Kyriakides, Savvides & Associates can discuss with you your requirements and needs and can help you decide which is the best jurisdiction for you.