Gibraltar or Cyprus For EU Based Processing?
 

Just wondering if anywhere here has some advice. Gibraltar looks like the more simplistic solution, however I am not entirely clear on their position relating to adult? Also is Gibraltar subject to the same VAT obligations as Cyprus (I know you can structure the processing so the Cyprus company is providing a service to a foreign based company to avoid this)?

Any help greatly appreciated.

Cyprus sucks...

Mind if I ask why you say that?

i think cyprus is good in based processing EU

Gibraltar is part of the EU but not of the EU VAT zone. Cyprus is part of the EU and part of the EU VAT zone.

Thank you u-Bob, I wasn't exactly clear on that, so your reply helped. Any idea what the reasoning is for why so many Adult companies are choosing Cyprus over Gibraltar? Gibraltar, particularly now I am aware of exemption from VAT, is a hell of a lot more straight forward.

There is no such thing as "EU VAT zone" . Its either EU country charge VAT or not. Its up to the country. Cyprus charge VAT, Gybraltar does not charge VAT.

Its not because of VAT, there are many other taxes. Cyprus is one of the lowest tax EU country in EU. Thats why many people choose it. There are +- 6 kind of taxes for a company (only one of them is VAT) and combination of those 6 taxes is most likely best (or its in top 3 EU) in Cyprus. Thats why many people choose Cyprus.

http://www.marcheseuropeens.com/docu...ery-index.html - here is tax misery index (its 2008 though, but you get an idea). Ones at the bottom are most "business friendly". So as for EU it would be Malta, Cyprus, Bulgaria, Lithuania at the bottom. Gibraltar not included though, its part of UK but with better taxes.

Yes there is. It's officially called the "European Union Value Added Tax Area". It's the VAT percentage that varies from country to country.

Look closely at the administration fees and audit requirements for Gibraltar.

Costs can rack up there.

Thanks for the feedback so far, some useful points bought up. Just a bump for any further opinions on this matter. Thanks.

Both of them are not keen on adult, you have to hide that you work in adult. The banks and incorporation companies won't work with you if they know it's adult.

For a Cyprus company you need to submit accounting every year, you have to submit invoices/documentation for all incoming and outgoing money. You need an accountant to submit this, so there are extra costs you have to take into consideration.