Whitmill's new Joint Venture in Cyprus
11 July 2018
Whitmill operates out of a number of jurisdictions - in Dubai, Gibraltar, Switzerland, Malta and the Netherlands in addition to its Jersey headquarters and recently announced the formation of a joint venture arrangement with Fidelius Management Services Limited, resulting in the establishment of Whitmill’s presence in Cyprus.
As a member of the EEC and with a wide network of international double tax treaties and low corporate tax rates, Cyprus offers a range of benefits to international businesses. Furthermore, the jurisdiction offers a strong modern infrastructure, as well as high professional standards.
Cyprus has become an ideal gateway and platform for conducting business and investments with Europe as well as its neighboring markets in the Middle East and North Africa.
Jersey is widely recognised as a leading jurisdiction for private family wealth, and alternative investment funds. Indeed, it has once again been recognised as the leading international offshore finance centre and is a magnet for private clients who are looking for a safe haven for their wealth. Jersey structures provide stability and certainty with strong rule of law and regulatory oversight, providing comfort to international investors whether institutional or UHNW individuals.
Furthermore, Jersey’s Trust and Fund regimes are tried and tested offering a wealth of options. From a wealth structuring perspective Jersey Trusts or Foundations enable succession and estate planning, provide professional administration of assets, a degree of confidentiality and through Jersey’s tax neutrality, potentially some opportunities for tax mitigation or deferment.
In July 2016 Jersey signed a treaty for the avoidance of double taxation which was subsequently ratified in February 2017 and came into force in January this year. The treaty is based on the OECD Model Tax Convention for the Avoidance of Double Taxation on Income and on Capital. The treaty provides for 0% withholding tax rates on dividends, interest and royalties.
It is hoped that the new treaty will contribute to the further development of trade and economic relations between Jersey and Cyprus. Likewise for Cyprus, it strengthens the jurisdictions attraction to foreign investment by enriching its standing as an International Business Centre. This Double Tax Treaty expands the double tax treaty network for both jurisdictions, unlocking and paving the way for new investment opportunities and trade relations to ensue between Cyprus and Jersey.
Prior to establishing this joint venture, Whitmill and Fidelius have closely cooperated in relation to mutual clients for over 10 years. Discussing the partnership Don Wijsmuller said, “At Whitmill we pride ourselves on our commitment to tailoring services to meet the needs of our clients. We have for the last ten years collaborated informally with Demos, viewing Fidelius as a preferred partner in Cyprus. The establishment of this joint venture and the registration of Whitmill Trust (Cyprus) Limited now puts our relationship on a formal footing and will create synergies which will benefit our clients, professional contacts and associates.
Similarly to Whitmill, Fidelius Management Services Limited is an independently owned company offering expertise in a range of corporate and trust services. This new agreement sees both businesses join together to incorporate Whitmill Trust (Cyprus) Limited, which will provide an experienced team of professionals dedicated to delivering quality corporate administration services from Limassol.
For more information about the advantages of these two jurisdictions and how they can be combined contact: Frederick Deacon