Cyprus – An International Business Centre09.01.2017 CATEGORY 2
Cyprus is ideally suited for international business due to the numerous benefits it offers including the following:
- EU and European Monetary Union Member State.
- Strategic geographical location – island at the crossroad of three continents, ideal for expansion in Europe, Asia and Africa.
- Extensive network of Bilateral Investment Treaties, with approximately 30 countries.
- Broad range of quality financial and business services – legal, tax, accounting and investment.
- Highly educated, qualified and multilingual workforce.
- Low set up and operating costs.
- Efficient business environment, accompanied by simple administrative procedures.
- Advanced transport and telecommunications network.
- High standard of living.
All the above, coupled with the numerous tax advantages that Cyprus offers, make the island, the perfect place for investors and business people.
A favourable Tax System
- One of the lowest corporate tax rates in the EU set at 12,5%.
- Extensive network of Double Tax Treaties, with 52 countries.
- Exemptions from tax:
- Dividend income received (subject to conditions).
- Profits of foreign branches of Cypriot companies (subject to conditions).
- Profits from the disposal of securities (including shares, bonds and debentures).
- No tax on capital gains from sale of property located outside Cyprus.
- Profits from the exploitation and/or disposal of intellectual property rights (80% exempt).
- No withholding tax on:
- Dividends paid to non-resident shareholders.
- Interest and most royalties paid from Cyprus.
- Personal income tax rates range from 0%-35%
- Cyprus implements internationally agreed tax standards – part of OECD’s “white list”.
- The Cyprus tax legislation is stable and straight forward.
- Relations between the business community and tax authorities are excellent and ensure the efficient taxation of the commercial and financial sector.
Moreover, through the government’s “scheme for naturalization of investors in Cyprus by exception”, the Cypriot citizenship may be acquired by non–Cypriot investors. Therefore, through this scheme an EU passport can be obtained, within three months, with a minimum investment of €2.0 million.