Cyprus is a long established reputable International Financial Centre. It has gained this enviable position through its attractive taxation system and its excellent infrastructure facilities and services, being its location, banking system and the recognised legal and accountancy professions which offer clear advantages over the traditional offshore jurisdictions for those that require non-taxable entities through which to carry out their activities.
Cyprus reputation was further enhanced following its accession to EU on 1 May 2004 which added to the Island’s impressive advantages. As part of the accession process towards full membership of the European Union, Cyprus reformed its tax legislation which conforms with EU requirements and fully complies with the OECD initiative against harmful tax practices. With the new tax legislation, Cyprus maintains and enhances its competitiveness as an international financial Centre. Cyprus is now firmly established as the ideal gateway for EU inbound and outbound investment.
The significant advantages that Cyprus has to offer to international business can be summarised as follows:
- Member of the European Union so as to avoid the use of suspicious offshore jurisdictions amongst other business partners and government authorities
- Lowest tax regime in the EU, Corporation tax rate is 10% which is the lowest standard rate in the EU
- Cyprus has access and applies fully all EU directives
- Favourable tax system with a wide network of double tax treaties
- Profit from the sale of securities including shares, bonds, options and other is exempt from taxation
- Dividend income in most cases is exempt from taxation
- No withholding taxes on payments to non-residents in respect of dividends and interest
- Exemption from taxation (capital gains tax) of gains arising from the disposal of immovable property situated abroad
Our newsletters and publications:
- Cyprus Holding Companies
- Cyprus International Collective Investment Schemes (ICISs)
- Investment in Cyprus
- Royalties – Effective Tax Routings
- Cyprus International Trusts
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