Cyprus Blog

This text clarifies that—while accountants in Belgium and the Netherlands are required to report suspicious transactions—such a reporting obligation does not automatically apply to consultants or structures in Cyprus. Entrepreneurs operating through Cyprus are therefore not necessarily faced with an automatic reporting obligation for a Cypriot structure, provided everything is set up correctly and transparently. This shifts the focus from risk avoidance to proactive structuring: don't opt ​​for false security or fear, but for a solid, compliant setup that is both tax-efficient and legally sound.

A shell company is a company without a physical presence or operational activities: no office, few to no employees, and little economic purpose in the country of incorporation. However, not every holding company or asset structure automatically falls into this category—companies that do manage shares or real assets, act as a group treasurer, or don't waste an empty shell structure are often excluded from the definition. In jurisdictions like Cyprus, clear guidelines have been issued urging banks to avoid or rigorously screen relationships with pure shell companies.