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The Service Sector

The service sector makes up 80% of the UK’s economic output and brings in huge amounts of revenue for the country every single year. While the UK and EU agreed to a Brexit deal on the movement of goods, there is effectively no deal for services. UK companies have lost the right to provide services in many sectors outside of the EU. 

A summary of some of the key changes:

  • Many sectors will now be required to register for VAT in the EU.
  • Many national professional qualifications will no longer be recognised.
  • The EU has largely not deemed UK rules for financial services as equivalent.
  • Financial service providers can no longer rely on the ability to “passport” from the UK into the EU.
  • Sale of construction services are prohibited in certain EU countries.

Benefits Of Establishing A Branch In Cyprus

Establishing a branch of your UK operations in Cyprus can circumvent the issues that have arisen since Brexit. This is because it is a one stop shop for VAT, which means that you can avoid setting up multiple VAT registrations across the EU. Operating from within Cyprus will also allow you to access a wealth of expertise, which resolves many of the concerns about the recognition of professional qualifications. If you then become authorised under a CySEC-regulated Alternative Investment Fund (AIF), this will alleviate any passporting concerns.

For more sector-specific benefits that exist here in Cyprus, contact us today

EQ:IQ And The UK Service Sector

We can offer a broad range of services to the UK service sector which will prove to be hugely beneficial in a post-Brexit environment. 

Our recommended services include:

  • Company and trust formation
  • Regulatory support
  • Banking services
  • Audit, accounting and payroll services
  • Tax advice and structuring
  • Provision of serviced offices and commercial substance
  • Access to trained and qualified professionals
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