Why Cyprus?

Main advantages of the tax system

Cyprus is strategically located between Europe, Asia and Africa and is recognized as an international centre of financial excellence for the provision of professional services. A combination of its low tax regime, double taxation treaties network and legal system makes Cyprus a desirable location for the formation of intermediary holding companies. Cyprus offers one of the most attractive tax systems in Europe which is effective, transparent and fully compliant with the EU laws and regulations.

List of taxation advantages

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Low corporate income tax rate 12,5%

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Dividend income: Received from a company resident in the Republic is not taxable. Received from a company non-resident in the Republic is not taxable (subject to certain conditions)

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Tax losses can be carried forward against taxable income over a period of five years from the end of the tax year in which they were incurred

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Qualifying taxpayers under the new Intellectual Property (IP) regime are eligible to a deduction equal to 80% of qualifying profits generated by qualifying assets

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No withholding tax on dividends paid to non-resident in the Republic

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Gains from the disposal of securities are exempt from taxation

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Profits from permanent establishment outside the Republic is not taxable (subject to certain conditions)

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Non-domicile Cyprus tax residents are exempt from special defence contribution on their worldwide income from dividends, interest and rent

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Extensive double tax treaties network (including Russia, Ukraine, India, UK etc.)

Other qualitative advantages

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Advantageous geographical location and time zone

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Member of the EU since 2004 and Eurozone country since 2008

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High standard of living

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English language is widely spoken

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Infrastructure that supports international business

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High standard of education

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International airports serving a high number of international and European airlines

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High standard of professional services provided by lawyers, accountants, auditors, tax advisors and bankers

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Banking sector (local and offshore bank corporations) offering online banking services

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Excellent telecommunication systems

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