Doing Business in Cyprus
Cyprus is quickly becoming an intentional financial centre with an increasing number of international companies choosing to do business in Cyprus. In recognition of this development, Cyprus has been voted as the most attractive European tax regime by major business organizations in Europe.
The island, being a member of the European Union, offers unrivalled advantages to international companies who carry out business in Cyprus. With a transparent and efficient business environment and tax system, Cyprus companies are the ideal mechanism for the protection of your business and a perfect instrument for efficient international tax planning.
Cyprus has been commented for the stability of its tax law, the consistency in interpreting its tax legislation and its low tax rates.
Some of the advantages of a Cyprus company include the following:
- High credibility of Cyprus companies since the island benefits from EU membership;
- The most attractive tax regime in Europe;
- One of the lowest corporate tax rates in Europe at 12.5%;
- The lowest VAT rate in Europe;
- Wide network of Double Tax Treaties thereby avoiding double taxation;
- Unilateral tax credit relief;
- Dividends paid to non-tax residents are exempt from taxation;
- Profit from the sale of securities is exempt from taxation;
- An advanced banking system with a highly skilled workforce;
- A well-functioning and stable common law legal system.
Uses of Cyprus Companies:
- Holding
- Trading
- Finance
- Royalty
