Doing Business in Cyprus
Cyprus is an established international business and financial services centre. Geographically it is positioned within the Mediterranean Sea at the crossroad of Europe, Africa and Asia.
The Greek, English, and Russian languages are widely spoken on the island.
Cyprus enjoys an international reputation as a low tax jurisdiction and as a centre of excellence for financial services and maintains a wide network of double tax treaties (more than 45), including countries in North America, Western and Eastern Europe, Russia and CIS countries as well as emerging markets such as China and India.
Cyprus has been a full member of the European Union since 2004 and adopted the Euro as its official currency since the beginning of 2008.
The most significant advantages that Cyprus has to offer to Cyprus tax resident companies include:
- One of the most attractive, simplified and transparent tax systems in EU, yet in full compliance with EU laws and regulations
- Legal framework is based on UK Common Law and aligned with EU Legislation (Acquis Communautaire) and the OECD demands
- Relatively lower operating costs at top quality services
- Double Tax Treaties (DTT) covering more than 40 countries including many EU countries, Russia and most members of the CIS
- Corporate profits taxed at 12,5% (the lowest rate in the EU)
- Investment income from dividends is exempt from tax
- Profits from sale of securities are exempt from tax
- No withholding tax on dividends, interest and royalties paid from Cyprus
- Profits from overseas permanent establishments are exempt from tax
- Ability to carry forward of tax losses for 5 years
- Group relief provisions
- Reorganization provisions
- Bank accounts offered in multiple currencies
- Attractive regulations for residency acquisition by non EU residents