Cyprus, as an EU member since 2004, is one of the most attractive jurisdictions for structuring International operations. This is mostly due to its low tax rates, its high reputation for the stability of its tax law as well as a high quality service sector.
However, there are several other tax and non-tax advantages that make Cyprus as one of the most attractive business centre:
Tax advantages:
- An extensive network of double tax treaties with 46 countries
- No withholding tax on dividends paid to non-residents shareholders
- No tax on profits from a permanent establishment abroad
- No capital gains tax on disposal of capital assets apart from the disposal of immovable property situated in the Republic of Cyprus
- Tax free income from dividends in Cyprus & lower withholding tax rates in other countries on remittances of dividends
- No tax on profits on disposal of securities
- Tax free distributions by Cyprus Holding companies to their non resident shareholders
- Availability of Group losses relief without any time restrictions, under certain conditions
- VAT optional registration allowing them to claim back any VAT imposed on local expenditure and services offered
Non-Tax advantages:
- Excellent Infrastructure in respect of transport and telecommunications
- High standard & skilled professionals such as accountants and lawyers
- Solid and Reliable Banking sector comfort to EU Directives
- Strategic Geographic Location at the crossroads with Europe, Midle East, Asia and Africa
- high standard of living.
