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