WHY CYPRUS
Cyprus, a European Country, has a strategic location close to the busy trade routes linking Western Europe with the Arab World and the Far East. Cyprus has an excellent Mediterranean climate with plenty of sunshine. Greek is the official language but English and Russian are widely spoken.
Cyprus has been a member of the EU since 2004 and gained a Eurozone membership four years later, in 2008. Hence, it can provide a penetration to Europe and connect businesses in Asia and Africa with the European Union.
The strong currency and the tax incentives combined with a high standard of living have led to the development of Cyprus as an international business centre. Apart from that, the tax system of Cyprus, which consists of a corporate income tax rate of just 12.5%, one of the lowest in the EU, and its extensive double taxation treaties with a number of countries have opened up new horizons for doing business on a worldwide basis and in particular with Europe.
ABOUT CYPRUS
Cyprus is the largest island in the eastern Mediterranean and is situated south of Turkey. Until 1960, Cyprus was a British colony. In 1960, Cyprus became an independent republic but preserved most of the English Legal System.
Since Turkey occupied the north of the island in 1974, the Turkish Cypriot and Greek Cypriot communities have been separated by the so-called ‘Green Line.’
In 2004, Cyprus became a Member of the European Union and on the 1st of January 2008, the official currency of Cyprus became the EURO.
Cyprus’s legal system is based on European Law, the Constitution of the Republic of Cyprus, the English legal system, the principles of Common Law and Equity and laws enacted by the House of Representatives.
Cyprus is ideally suited for international business due to its geographic location and numerous tax incentives coupled with an excellent commercial infrastructure. These factors have assisted Cyprus in becoming an important International Business Centre. Cyprus at present offers the lowest fixed corporate tax rate (10%) in the European Union and a very competitive V.A.T. rate of (15%). Furthermore, double tax treaties have been concluded with more than 41 countries.
Cyprus is a low-tax jurisdiction, not a tax haven, and its fiscal and regulatory regimes are fully aligned with the EU’s acquits communication and Code of Conduct for Business Taxation and the requirements of the OECD, the FATF and the FSF.
Excellent banking facilities are also available with a number of onshore banks, offshore banking units (OBU’s) and specialized financial institutions operating on the island. International correspondent networks are maintained by onshore and offshore banks. Recently the Republic of Cyprus has approved itself as the country with a free market economy giving vast opportunities for the international business as an effectual instrument in international tax and financial planning.
Here are just some of the many advantages in incorporating a business in Cyprus:
- Cyprus is not considered to be a tax haven but a tax incentive country.
- Cyprus is a member of the European Union
- Excellent strategic geographical locations as Cyprus is situated at the crossroads of three continents: Europe, Asia and Africa.
- Very low Tax Rate
- Benefits from Double Tax Treaties
- Useful vehicle for receipt of Dividends, Interest and Royalties
- Net profits of International business companies are subject to tax at the rate of 10% only (companies incorporated before 2003 – 4.25%)
- Cypriot off-shore company owners may remain anonymous using nominee services.
- Shipping Companies operating Cyprus flagged vessels are
exempt from taxation - Low personal tax rates and low social services contributions
- High quality standards of services
- Excellent commercial infrastructure
- Excellent Banking and Professional Services
- Able to open a fully operational office in Cyprus
- Excellent air and sea connections