While Cyprus has a population of 1.7 million people, over 2 million tourists visit the island each year to experience this “jewel of the Mediterranean,” which boasts pristine beaches, cuisine, climate, history, and the comforts of modern technologies.

Cyprus joined the EU in 2004 and the Eurozone in 2008, giving the country a greater competitive advantage. This, in addition to its attractive tax system, legal system, the infrastructure on the island, and high quality of life it has to offer are just a few reasons why Cyprus remains a popular option for international business. International corporations with substance in Cyprus can have access to more than 2,3 billion consumers within a 4 hours flight!

TAXATION

• 65 Double Tax Treaties
• 12,5 % Corporate Tax
• OECD compliant
• 0% Tax on Dividends
• No withholding tax on dividends, interest and royalties paid from Cyprus
• 50% of income from interest derived by a Cypriot registered company is exempt from corporate tax
• Profits realised from the sale of securities are exempt from tax.
• Benefit of the EU parent-subsidiary directive
• Any profits arising on the transfer of assets and liabilities between companies during a reorganisation plan are tax free.
• There are no inheritance, estate or other taxes on shares held in a Cyprus company
• Cyprus imposes no taxes on wealth

With one of the lowest EU corporate tax rates at 12.5%, the tax system in Cyprus is one of the most attractive regimes in all of Europe. Its system is progressive, meaning that tax rates are higher based on income. Cyprus’s association to the OECD guarantees its adherence to the internationally agreed tax standards. Significant fiscal benefits exist for IP, royalties, dividends and interests and many more, all of which allow foreign investors to gain a competitive advantage on their overseas ventures.