Cyprus Advantages

Cyprus is considered as an established, trustworthy and reputable business and financial center. The Island currently presents a number of opportunities to international investors and business people.

Member of the European Union and Eurozone

The Republic of Cyprus became a full member of the EU on May 1st, 2004.

On 1st January 2008, Cyprus joined the European Monetary Union and adopted as its official currency the Euro (€).

One of the Lowest Corporate Income Tax rate in EU

Cyprus Companies are taxed at the flat rate of 12,5% on their taxable income.

Established International Business Center

  • A wide network of Double Tax Treaties
  • EU Directives available
  • Strong political and economic relations with the major economies of the World such as the Russian Federation, China, India, USA and the UK.

Excellent Accounting, Legal and Banking Services

  • Well trained and highly skilled professionals provide high-quality accounting, auditing, consultancy and legal services offering their expert and reliable advice on all aspects of business and law, both local and international.
  • Commercial banks and specialized financial institutions offer a variety of national and international services for Companies and individuals.

The main structures useful to the investors who are willing to invest in Cyprus or through Cyprus are the following:

  • The Cyprus Holding Company
  • Finance Company
  • Intellectual Property Company
  • Trading Company

 

The Cyprus Company

The Cyprus Holding Company enjoys the following advantages:

  • 12,5% corporate tax on trading profits
  • No withholding tax on outward payments

(Dividends-Interest-Royalties)

  • No participation exemption and no holding period exists.
  • No CFC rules;
  • Nothin capitalization rules;
  • Capital gains from the sale of immovable property situated outside Cyprus are tax exempt;
  • Taxable losses carried forward indefinitely; from 2012, a temporary limitation of five years is introduced in the tax system under which, losses will be allowed to be carried forward for offsetting future taxable income, for a period of five years from the year to which the profits relate.
  • Capital gains on the sale of securities: 100% exemption unless immovable property in Cyprus is involved;
  • Group relief availability (75% holding);
  • Tax-free re-organizations (cross-border permitted);
  • Foreign PE profits exempt;
  • Tax-free corporate re-domiciliation permitted;
  • Possibility for establishing an SE (European Company);
  • Applicability of all EU directives;
  • Extensive Double Tax Treaty network.
  • Advance ruling practice exists;
  • Easy to open bank account worldwide on the Cyprus company

A secure destination for holding of investments, assets, intellectual property etc.