TRNC Free-Port: A Comprehensive Guide to Investment Opportunities and Advantages
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The Free Port Zone in the Turkish Republic of Northern Cyprus (TRNC) has become a hub of attraction for both local and foreign investors in recent years. With its strategic location, tax benefits, and special status under the law, this area offers a plethora of opportunities. Here's a detailed look at what makes the Free Port Zone in TRNC a lucrative option for investors.
Special Status and Tax Benefits
Free Port Companies (FPC)
FPC companies operate under a special status granted by the Free Port and Zone Law No. 26/1993. These companies are exempt from all kinds of taxes, including Income Tax, Corporate Tax, and VAT, for all activities conducted outside of TRNC. However, this tax status changes if the company engages in commercial activities within TRNC.
Tax Exemptions and Free Capital Transfer
Profits and revenues generated in the zone can be freely transferred to any country, including Turkey. This offers significant financial flexibility for investors.
Diverse Business Opportunities
The Free Port Zone allows for a wide range of activities, including industrial production, all kinds of buying and selling, transit trade activities, technology, software companies, and other activities approved by the Council of Ministers.
Establishment Options and Capital Requirements
FPC companies can either establish offices/warehouses in the Free Port Zone or be set up through PO boxes. The required initial capital for foreign shareholders is set at EURO 25,000.
Accounts and Auditing
Annual financial statements are open to all kinds of state audits and are submitted to the Tax Office with an independent audit report every year. This ensures financial transparency for companies operating in the zone.
The Free Port Zone in TRNC offers a multitude of advantages for investors, ranging from tax benefits and diverse business opportunities to trade advantages and financial transparency. With its special status, minimal bureaucratic hurdles, and flexible establishment options, this zone stands as an attractive investment destination.
