Construction Services Sector
It is largely unknown how the construction sector will fare after Brexit, as the demands of the industry may not be met if it faces a severe skills shortage. With this kind of uncertainty, it’s not unexpected that nearly 66% of construction professionals are worried about the negative impact Brexit will have on the construction sector, and that 24% are actively preparing for falling market conditions.
Some of the key areas of the construction sector that will be implicated by Brexit include the availability of materials, skills shortages and infrastructure funding.
After Brexit, existing free trade agreements with the EU will disappear, and businesses will experience quantity limitations and delays at various borders. This could mean higher material costs across the board. The right to free movement throughout the EU will be removed, and the skills shortage is very likely to worsen. Finally, with the change in the relationship between the European Investment Bank and the European Investment Fund, easily accessible funding for large scale infrastructure projects will have to be reconsidered. Without sufficient funding, there will be delays in infrastructure projects.
Benefits Of Establishing A Branch In Cyprus
Forming a branch of your UK-based construction company in Cyprus may help to mitigate the impact of Brexit. This is because Cyprus offers a strategic location, as it is in a good geographical position. There are also huge tax benefits to the nation:
- One of the lowest corporate income tax rates in the EU, at 12.5%.
- Dividend participation exemption.
- No withholding taxes on dividend, interest and royalty payments abroad.
- No capital gains tax (except for disposal of real estate or shares of a company holding real estate in Cyprus, to the extent that gains are attributable to the real estate holding).
- No succession taxes.
- Notional interest deduction for investments into Cyprian companies.
- Personal tax exemptions for new residents and non-domiciled individuals
Further benefits to operating in Cyprus reside in its highly attractive Intellectual Property regime, and the human talent and quality of service. For more sector-specific benefits to having a business in Cyprus, give us a call today.
EQ:IQ And The UK Construction Sector
At EQ:IQ we strive to help our clients avoid the common mistakes and pitfalls which occur when operating on an international scale. With a wealth of experience in supporting and advising businesses within the construction sector, we are confident that we can help you to create the business structure you require. Our extensive services include:
- Company and trust formation
- Regulatory support from a well established and respected regulatory body for financial services
- Banking services
- Audit, accounting and payroll services
- Tax advice and structuring
- Serviced offices and commercial substance
- Access to trained and qualified professionals