Cyprus Gaming License

Introduction

The gaming industry has seen a meteoric rise in recent years, and companies around the world are vying to establish themselves in regulated markets. One jurisdiction that has garnered attention for its favorable regulatory framework is Cyprus. With its strategic location and membership in the European Union, Cyprus has become a hot spot for online casinos and sports betting platforms. At E&S Group, we are dedicated to helping you navigate through the intricacies of obtaining a Cyprus gaming license, embodying our mission to incorporate, deliver, anticipate, and provide everyday solutions to your business.

Why Opt for a Cyprus Gaming License?

EU Compliance and Market Access

Cyprus, being a member of the European Union, assures operators that they are part of a system compliant with European laws. This offers not only legal stability but also access to the broader European market.

Tax Efficiency

The island nation boasts one of the most favorable tax regimes in Europe. With competitive corporate tax rates and an extensive network of double taxation treaties, Cyprus is a tax-efficient option for gaming businesses.

Modern Regulatory Approach

Cyprus offers a modern and proactive approach to gaming regulations. With a keen focus on responsible gaming and anti-money laundering measures, the jurisdiction ensures a secure and ethical operational environment.

Cost-Effectiveness

Due to its favorable business climate and operational efficiencies, the overall cost of obtaining and maintaining a license in Cyprus is relatively lower when compared to other EU jurisdictions.

Types of Licenses Available

In Cyprus, gaming licenses fall under two main categories:

  1. Class A License: This license covers the operation of online casinos, including various table games and slot machines.
  2. Class B License: Aimed at sports betting operations, this license allows operators to offer betting services on sporting events.

The National Betting Authority of Cyprus is responsible for issuing these licenses, ensuring a regulated and compliant gaming environment.

Application Process: A Step-by-Step Guide

  1. Preliminary Consultation: Connect with experts like us at E&S Group to understand the scope and requirements of the gaming license you seek.
  2. Documentation: Prepare all necessary documents, including but not limited to, business plans, technical specifications, and financial projections.
  3. Due Diligence: A rigorous background check will be carried out on the company and all its key members.
  4. Application Submission: Once the documents are ready and the due diligence is complete, the application is submitted for evaluation to the National Betting Authority.
  5. License Granting: After a thorough evaluation, the license is issued, paving the way for operations to begin.

The Role of E&S Group: Your Trusted Partner

We don’t just assist you in obtaining a license; we offer a 360-degree solution tailored to your needs. From corporate services to tax planning, we aim to be your one-stop solution provider. We also provide ancillary services, such as the opening of bank accounts and residency, thereby adding value to your business operations.

Conclusion

A Cyprus gaming license offers an entry into a lucrative and compliant market. With expertise in corporate, tax, gaming, and various other sectors, E&S Group is committed to ensuring that you operate not just legally, but also efficiently and effectively. Our services are aligned with our core values of delivering quality, ensuring customer satisfaction, and providing a dynamic work environment. Reach out to us to get started on your journey to obtaining a Cyprus gaming license.

Learn More

Contact our Chief Client Officer Deborah Vella on LinkedIn, email us for further information info@ellulschranz.com or leave us a message below.

Taxation of Gaming Companies:

When it comes to establishing a gaming business in Europe, Cyprus is often one of the first locations considered due to its favorable tax regime and robust regulatory framework. To add value to your strategic planning, we at E&S Group provide a comprehensive guide to understanding the taxation of gaming companies in Cyprus. Our mission is to incorporate, deliver, anticipate, and provide everyday solutions to your business, so you can focus on what you do best.

The Attractive Tax Regime of Cyprus

Corporate Tax Rate

Cyprus boasts a competitive corporate tax rate of 12.5%, one of the lowest in the European Union. This rate is applied to net profits generated from business activities, including gaming services.

Double Taxation Agreements

Cyprus has an extensive network of double taxation treaties with more than 60 countries. This network allows businesses to avoid being taxed twice on the same income and helps in planning tax-efficient structures.

VAT Exemption

In Cyprus, most gaming activities are exempt from Value Added Tax (VAT), as they are considered services offered for entertainment. This exemption is particularly beneficial for online casinos and sports betting companies.

No Withholding Tax

Cyprus does not impose withholding tax on dividend, interest, and royalty payments made to non-residents, further enhancing its appeal as a tax-efficient jurisdiction.

Special Levies and Contributions

  1. License Fees: Companies need to pay an initial fee for obtaining a gaming license, as well as annual renewal fees.
  2. Betting Tax: Some forms of gaming activities are subject to betting tax, which is usually a percentage of the gross revenue.
  3. Contributions to Responsible Gaming Funds: Operators may be required to contribute to funds that promote responsible gaming, as part of their social responsibility.

Tax Planning Opportunities

Use of Holding Companies

Many gaming companies opt to establish a holding company in Cyprus to take advantage of the participation exemption on dividends received from subsidiaries.

Profit Shifting

Companies can engage in profit shifting to move profits from high-tax jurisdictions to Cyprus, thereby reducing the overall tax burden.

Structuring for IP Rights

Intellectual Property (IP) rights can be held in Cyprus to benefit from favorable tax treatment of IP income.

Compliance and Reporting

Gaming companies are required to maintain accurate accounting records and must undergo annual audits. They are also obligated to submit an annual tax return and adhere to anti-money laundering (AML) regulations.

How E&S Group Can Assist You

E&S Group doesn’t just help you understand the taxation landscape; we provide comprehensive solutions to ensure that you take full advantage of tax planning opportunities. Our experts in corporate, tax, and gaming law work diligently to ensure your operations are efficient and compliant, offering value-added ancillary services like opening bank accounts and securing residency.

Conclusion

Cyprus offers a compelling package for gaming companies, combining a favorable tax environment with a robust regulatory framework. As you seek to navigate this landscape, E&S Group is committed to being your trusted partner every step of the way.

 

If you’re ready to explore the benefits of setting up a gaming company in Cyprus, feel free to contact us.

Testimonials

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"We are happy to have E&S Group as our legal and transaction consultants. Their reliable and prompt advise on Maltese regulations and requirements has been extremely helpful throughout. Through our interactions with Mariella, Deborah and Anton among others, we find their team to be courteous, skilled, and promptly available to assist us as needed."

Prashanth Swaminathan, CEO of XDAT May 9, 2019

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"E&S assisted us with various transactions related to the expansion of our client's global structure. They have provided reliable tax advice; their expertise and efforts have been commendable. We would recommend E&S as an effective service provider."

Mitchell B. Kops & Jill Kelly - Withers Bergman January 26, 2017

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"We've been honoured to cultivate a robust partnership over several years, focusing mainly on joint efforts with Dr. Deborah and Dr. Jade. The highlight of our collaboration is not just their expansive legal proficiency, but also their steadfast dedication to upholding the highest standards of professionalism. We deeply appreciate our straightforward and clear communication, underpinned by mutual understanding and respect, which consistently prioritizes the requirements and interests of our shared clientele."

Mr Ali Zarzouri, Business Development Manager at Malte Conseils (2023) June 14, 2023

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