Client Case Study: How We Helped a Cyprus Developer to Plan, Monitor, and Sell 100% of Its Project

At Evidentrust Financial Services Ltd, we specialize in providing end-to-end accounting and consulting services for Cyprus residential projects. This client case study showcases our collaboration with a foreign investor who aimed to invest in the real estate market of Cyprus by developing a residential building in Limassol. This year, we achieved a significant milestone by facilitating the successful sale of the last remaining apartment, bringing the project to 100% occupancy and full completion.

Our Role and Services Provided:

Company Incorporation, Financing Arrangements, and Compliance with KYC Requirements: We began by assisting the foreign investor with incorporating their real estate development company in Cyprus and managing all necessary registrations with relevant governmental departments. One of the key challenges was arranging the financing and ensuring that funds were transferred to Cyprus and cleared through the Cyprus banking system. Our team provided comprehensive support in navigating the bank’s KYC (Know Your Customer) requirements, ensuring all necessary documentation was submitted and approved for seamless transactions.

Strategic Tax Planning and Optimal Legal Structure: Another critical challenge was determining the most beneficial tax and legal structure for the entity. Our tax consulting experts worked closely with the client to develop a tax-efficient strategy that minimized tax liabilities while complying with Cyprus tax laws. This included advising on the optimal structure for financing to ensure maximum benefits under the current tax regulations.

Ongoing Monitoring and Reporting of Construction Costs and Cash Flow Management: Throughout the construction phase, our team provided meticulous monitoring and financial reporting of all construction costs. We continuously tracked the client’s cash transactions, company commitments, and outstanding balances through detailed reports. This proactive approach ensured the project was completed without any cash flow shortages, maintaining financial stability and avoiding potential disruptions.

Facilitation of Apartment Sales and VAT Management: Upon the completion of construction, we supported the client in facilitating the sales of apartments. Our services included issuing and monitoring payments in accordance with the sale agreements, managing applications for reduced 5% VAT rates on sales, and assisting with the clearance of funds to Cyprus banks. Timely VAT applications and approvals were crucial in expediting the sales process and ensuring quick receipt of inflow funds.

Ongoing Financial Reporting to Key Stakeholders: We ensured ongoing financial reporting to all key stakeholders, providing them with regular, accurate updates and insights into the project’s financial status. This transparency helped maintain trust and informed decision-making throughout the project.

Year-End Accounting Closure, Audit, and Regulatory Tax Submissions: As the project neared its conclusion, we conducted the year-end accounting closure and prepared comprehensive financial statements. The annual audit and tax submissions were executed in line with the relevant regulatory requirements, ensuring full compliance with Cyprus accounting and tax regulations. Our meticulous approach prevented any penalties or fines for late or incorrect submissions.

Conclusion: Successful Project Completion

With the sale of the last apartment completed this year, we are proud to have been a part of this successful project from start to finish. Our expertise in accounting, tax compliance, consulting, VAT management, financial reporting, and audit services helped our client navigate complex financial requirements and achieve their business goals efficiently, achieving a 100% sale rate without any financial or regulatory hurdles.

Client Testimonial:

“As a foreign investor, I was initially concerned about the complexities of maintaining a Cyprus company and complying with Cyprus regulations. However, the team at Evidentrust Financial Services Ltd handled everything with precision and professionalism. Their proactive cash flow management and strategic VAT planning ensured we faced no financial shortfalls or penalties. Thanks to their support, we managed to sell 100% of the apartments earlier than our initial projections, which exceeded our expectations. I highly recommend their services.”

If you’re looking for expert end-to-end accounting, consulting, and financial services in Cyprus to support your next residential project, contact Evidentrust Financial Services Ltd today and discover how we can help you achieve success.