Why Cyprus

POPULATION

Cyprus is the third largest and third most populous island in the Mediterranean. A lot of tourists who came to Cyprus for their summer holidays decided to move over and live here forever. It must be said that the Republic of Cyprus is a country with a very favourable tax climate therefore it is profitable to develop your business here.

WEATHER

Being the sunniest country in Europe, Cyprus has over than 300 days of sun annually.The sun shines throughout the year, particularly from April until October. It’s not all about sunshine though, high in the country’s central mountain range (Troodos) during the winter season, snow usually falls to allow the skiing slopes to open. According to the World Health Organization the environment in Cyprus is one of the healthiest in the world and is relatively unspoiled by industrialization.

EDUCATION

The education system in Cyprus is of a very high standard and open to all residents. Cyprus offers a wide range of schools from pre-school kindergarten, pre-primary, primary schools, secondary schools, colleges and universities. The Cypriot government wishes to ensure that children from other countries continue their education whilst they are in Cyprus. In addition, teachers receive training to enable them to respond adequately to the teaching of pupils from other language backgrounds. A number of private schools (Greek, English, French, Armenian and Russian-language) are also available. Higher education is available through 6th form colleges and recognized English language institutions. Attendance at all Greek schools is free of charge.

BUSINESS

Over the past twenty years Cyprus has developed into one of the most favourable ..places for international business. The Cyprus tax regime combined with its excellent geographical position and infrastructure were the key factors for its success. Cyprus has a very competitive tax system that is fully aligned with EU and international regulations.

Cyprus tax resident companies benefit from Cyprus’ extensive double taxation treaty network with over 43 countries worldwide as well as access to EU directives. The OECD includes Cyprus on the White List of authorities that have substantially implemented the internationally agreed tax standard.

Business activities which are ideally suited to the Cyprus tax environment include:

  • Holding companies
  • Finance companies
  • IP companies
  • Investment Funds
  • Trading/Value-Chain-Transformation companies

Cyprus Corporate income tax, at the competitive flat rate of 12,5%, is the main tax applicable on the income of a Cyprus tax resident company.

Highpoints 

  • Foreign sourced dividends are exempt from tax under easily met conditions.
  • Disposals of shares and other qualifying titles (such as corporate bonds) are exempt from tax provided the disposed company does not hold any immovable property in Cyprus.
  • Generally, no withholding taxes on payments from Cyprus.
  • Profits of a foreign Permanent Establishments (PE) are exempt from taxation in Cyprus, under easily met conditions.
  • The Cyprus IP tax regime can be utilized to achieve an effective tax rate of low 2,5% or even lower.