The third largest island in the Mediterranean Sea

The Republic of Cyprus

Having a widespread reputation of a reliable, legitimate jurisdiction, Cyprus is an eminent financial Centre with one of the lowest tax rates among European Union member states. It also offers an extensive double tax treaty network, first class professional services and a transparent regulatory environment which make Cyprus the ideal location to conduct business.

Cyprus offers competitive advantages that have contributed largely to establish Cyprus as an important international business and shipping center.

The major fiscal advantages for the International Business Companies (IBCs) are as follows:

  • There is no distinction between local Companies and IBC. Net profits of IBC and International branches managed and controlled from Cyprus are taxed at 12.5%.
  • Profit from the sale of shares and other instruments that carry a title such us bonds and debentures are tax free.
  • Dividend income is tax free except in certain conditions.
  • Notional interest expense deduction on equity.
  • Favorable tax scheme for IP box Companies
  • Profit margin on back to back group financing loans can be as little as 0.125%.
  • No Tax on profits from the operation or management of a Cyprus-registered vessel.
  • Option between tonnage tax and 4,25% Corporation Tax if the vessel is not registered under the Cyprus flag.
  • International business branches which are managed and controlled from abroad and International Business partnerships are totally exempt from Corporation or Income Tax.
  • No withholding Tax on dividend distribution and payments of interest and royalties.
  • Profits earned   from a permanent establishment abroad are fully exempt from Corporation Tax.
  • Use of a large number of double tax treaties.
  • No Capital Gains Tax except on sale of immovable estate situated in Cyprus.
  • Tax losses can be carried forward for up to 5 years.
The third largest island in the Mediterranean Sea

The Republic of Cyprus

Cyprus offers competitive advantages that have contributed largely to establish Cyprus as an important international business and shipping center. The services industry along with Tourism are the two main sources of income for the government of Cyprus. It goes without saying how much committed the Government is to enhance the importance of Cyprus as an investment and shipping center.

The government showed clearly that will maintain its low taxation system and further expand the avoidance of double taxation treaties with more countries. The establishment of the “Cyprus Investment Promotion Agency” has contributed dynamically and flexibly to the effective promotion of Cyprus as an international investment and business Centre, as well as to the infusion of foreign investments in the targeted sectors. Lastly, the establishment of “One-Stop Shop” greatly simplifies procedures for foreigners wishing to create a business in Cyprus.

%
Greek Population
%
Foreign Population
%
Turkish Population

Diversity

The major international shipping center and many attractive financial investment industries. Expansion in Oil and Gas sector with discovery of 453bn cubic metres of useable gas in 2010.

Living

Stable Political and Legal System with excellent transport and telecommunications network. The enviable quality of life from different aspects.

Taxation

Cyprus offers one of the most attractive tax regimes in Europe. Consistent, easy and low Taxation system having Double Taxation treaties with almost 60 countries.

The Location

The geographical position being a natural bridge connecting Europe with Asia and Africa. EU and European Monetary union Member State

Professional Service

High level of financial and business services –  accounting, audit, tax consultancy, legal, investment, and brokerage

Supporting Businesses

Low set up and operating costs with the market-oriented economy. Highly educated, qualified and multilingual workforce.

Cyprus Citizenship for Investors

Investing more than € 2 million in residential and commercial properties guarantees the provision of a Cyprus passport within 3 months.

Read more