Cyprus – Key Benefits
A combination of favourable factors has led to Cyprus becoming a popular jurisdiction in which to form a company and in the last decade the role of Cyprus in international tax planning has increased dramatically.
The admittance of Cyprus to the European Union in May 2004 has ensured advantages in terms of increased legitimacy and compliancy – Cyprus is now included in the Organisation for Economic Cooperation and Development (OECD) White List.
One of the major benefits of Cyprus is the Corporation Tax Rate; Cyprus has the lowest tax rate in the whole of the EU with only 10% Corporation Tax.
Additional benefits are as listed below:
- The incorporation process for a Cyprus Company is simple and straightforward. A Cyprus Company can be incorporated with only one director and shareholder in addition and there are no restrictions on foreigners acting as director or shareholder. Prior to incorporating the name must be approved by the Registrar of Companies. Providing there are no companies with similar names approval will be granted quickly. Filing in English is permitted.
- Lowest corporation tax in Europe of 12,5%
- Favourable tax regime for Cyprus holding companies, including no tax on consolidation, no controlled foreign company (CFC) rules, etc
- No taxation on inward or outward dividends and no Capital Gain Tax (CGT) on sales of securities. Due to this many security traders have trading offices in Cyprus.
- There are more than 40 double tax treaties (DTT) concluded with other countries
- A bank account for a Cyprus company can be open quickly and efficiently without the directors of the company being present. To open a bank account remotely notarisation and legalisation of documents of directors and shareholders of Cyprus company is required
- Cyprus has adopted International Financial Reporting Standards (IFRS)
The Cyprus Investment Promotion Agency (CIPA) is a registered not-for-profit company limited by guarantee and fully funded by the Government of Cyprus, with the aim of encouraging investment in Cyprus.
Please find brochures produced by CIPA that provide additional information about the benefits of Cyprus.In document CYPRUS FOR FUNDS, you can read about:
- Cyprus: Solutions in a Changing Fund Industry
- Cyprus: The Location of Choice For The Domiciliation and Administration of Investment Funds
- Cyprus: The Location of Choice For Asset Management Companies
- Taxation in Cyprus
In document, Cyprus – Invest with confidence, CIPA gives the current overview on the investment situation on the Island. This report shows you key benefits of Cyprus as a location for your investments, clearly describing reasons.In “Cyprus – Invest with confidence” you can read about:
- Reasons to Invest in Cyprus
- Glimpse of Cyprus
- European Union Membership
- Cyprus: A Low Risk Market Economy
- Robust Legal & Regulatory System
- Favorable Tax System
- Double Taxation Agreements
- An Enviable Lifestyle
- Banking & Financial Services
- Investment Funds Centre of the Region
- Information and Communication Technologies
- Professional Services
- Health Services
- Cyprus Investment Promotion Agency (CIPA)