United Kingdom

  • Posted By : Admin
  • Tax havens
  • 10-01-2018
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United Kingdom, a former member of the European Union, is considered the second most important financial center in the world. Its economy is based on finance and its stability or weakness influences all financial markets. The United Kingdom is considered along with the United States as the capital of e-commerce and hence many technology companies are operating from this magnificent jurisdiction.

General information

Official language
243,610 km2
Form of government
Unitary Parliamentary constitutional monarchy
Pound sterling (£, GBP)
UTC time zone
UTC 0 / + 1
Legal system
Legislation based on English Common law

Taxes for non-residents in United Kingdom

United Kingdom maintains unique programs for foreign investment and European Union residence permits. The British authorities offer favorable tax regime for natural or legal persons with deposits in Cypriot banks, provided that they do not carry out commercial activities with natural and legal persons in United Kingdom. Investors who decide to register a company in United Kingdom will see that the annual corporate tax rate is 19%, with Bulgaria being the country with the lowest corporate tax rate of 10%. The obligatory taxes that a company will have to assume will be the corporate tax and VAT, there are no taxes for the repatriation of dividends, inheritances, donations and neither will it support any type of tax withholdings for subsequent years. United Kingdom offers very simple solutions for tax savings as it has numerous tax treaties on double taxation.

Characteristics of Cypriot Companies

Types of companies
Limited liability company (LLC), Public Limited Company (SA), LLP (Limited Liability Partnership).
Share capital
The share capital required when registering LLC is 1 pound.
Constitution time
3 days
United Kingdom corporation tax rate is 19%.
1 director minimum. The director can be individuals or companies with residence in any country.
1 shareholder minimum. The shareholders can be individuals or companies with residence in any country.
Registered. Bearer shares are not allowed.
Legal address
It is obligatory to have a legal address on the territory of the country.
The information about the final beneficiaries and directors is public.
Board meetings
Meetings of directors or shareholders are not mandatory and can be held anywhere in the world.
Accounting / annual audit
British companies have to present the accounts and declaration annually and depending on the turnover of the company audit will be mandatory or not.

Financial system in United Kingdom

Financial services
Banks in United Kingdom are specialized in e-commerce, stock exchange investments, currency exchange; also the customer may request any type of financial services: checking accounts, savings accounts, virtual pos, credit cards, foreign currency accounts, investment accounts in Stock market, credits and Mortgages.
Limitations of cash payment
There are no limitations on cash payments nor there is exchange control. British banks can open accounts in numerous currencies Euros, US $, GBP, AUD, CAD, CNY, JPY.
Deposit guarantee
Banks in United Kingdom cover up to 85.000 GBP of client´s deposits.

Automatic information exchange in United Kingdom

United Kingdom has signed the automatic exchange of information treaty that has entered into force on January 1 of 2017 and it has also signed 48 bilateral agreements of automatic exchange of information.

The signatory countries of the agreement

Year 2017
Anguilla, Argentina, Barbados, Belgium, Bermuda, British Virgin Islands, Bulgaria, Cayman Islands, Colombia, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Faroe Islands, Finland, France, Germany, Gibraltar, Greece, Groelandia, Guernsey, Hungary , Iceland, India, Ireland, Isle of Man, Italy, Jersey, Korea, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Montserrat, Holland, Niue, Norway, Poland, Portugal, Romania, San Marino, Seychelles, Slovakia, Slovenia, South Africa, Spain, Sweden, Turks and Caicos Islands, United Kingdom.
Year 2018
Andorra, Antigua and Barbuda, Aruba, Australia, Austria, Bahamas, Barein, Belize, Brazil, Brunei, Canada, Chile, China, Cook Islands, Costa Rica, Curaçao, Dominica, Ghana, Grenada, Hong Kong (China), Indonesia, Israel, Japan, Kuwait, Lebanon, Marshal Islands, Macao (China), Malaysia, Mauritius, Monaco, Nauru, New Zealand, Panama, Qatar, Russia, Saint Kitts and Nevis, Samoa, Saint Lucia, Saint Vincent and the Grenadines, Saudi Arabia, Singapore, San Maarten, Switzerland, Trinidad and Tobago, Turkey, United Arab Emirates, Uruguay and Vanuatu.

Currently, 10-01-2018 United Kingdom has signed 52 bilateral agreements on the automatic exchange of information, mainly with all European Union countries. You can see the updated list of countries that have signed bilateral agreements to exchange information automatically with each other.

The bilateral agreements with United Kingdom

Year 2017
Andorra, Argentina, Austria, Belgium, Bulgaria, Caribbean Netherlands, Colombia, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Faroe Islands, Finland, France, Germany, Gibraltar, Greece, Greenland, Guernsey, Hungary, Iceland, India, Ireland , Isle of Man, Italy, Jersey, Korea, Liechtenstein, Latvia, Lithuania, Luxembourg, Malta, Mexico, Monaco, Holland, Norway, Poland, Portugal, Romania, San Marino, Seychelles, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland.
Year 2018
No bilateral agreement has been signed for this year.

The countries most affected by the signature of the automatic exchange of information treaties are going to be the countries of high taxation and not the offshore jurisdictions. It is expected that high tax countries sign bilateral agreements with each other with the corresponding problem that these have: competition in investments, tax competition and abandonment of investments in other jurisdictions by countries with lower or no taxation allowing legal repatriation of them to the country of fiscal residence.

Advantages of United Kingdom

United Kingdom is one of the best offshore jurisdictions to invest for the following reasons: 

  • The second most important financial center in the world.
  • Legal security guaranteed by law. 
  • Capital of E-Commerce
  • Jurisdiction specialized in asset protection and tax planning.
  • Little bureaucracy when it comes to obtaining commercial licenses, company formation and bank account opening.
  • No restriction by nationality. 
  • Excellent geographical location. 
  • Economically stable financial center. 
  • Very well regulated financial sector