Cyprus being a European country in the crossroad of three continents is the ideal place for companies to operate at both a European and International level. The location, the low financial costs and the exceptionally professional working environment make Cyprus one of the most attractive destinations for International Business (Offshore) Companies (IBCs).
The most significant benefits of IBCs (and their shareholders) are illustrated in the list below:
Cyprus offers the lowest Non-Offshore tax jurisdiction in the world. Corporate tax starts from 0% for shipping companies and reaches 10% flat rate for standard limited companies and any branches managed and controlled from Cyprus.
Income arising from dividends and profits from sale of securities are tax exempt.
Interest gained from trading or closely connected activities is only taxed under Corporation tax.
No tax deducted at source for dividends paid by IBCs to non Cypriot tax residents.
Tax losses may be carried forward indefinitely and utilised against the next available profits.
Cyprus has an extensive number of Double Taxation Treaties(DTT) with other countries in order to avoid double taxation charges and assist in the transparent taxation processes.
No restrictions in acquisition of shares in Cypriot companies by investors from European or International countries.
Mergers, De-mergers Takeovers and generally restructuring can be conducted without any tax burdens.
Employee fund contributions are only 6.8% (social insurance contributions).
The maximum personal tax in Cyprus is only 30% for an income of € 36,300 or more.
Foreign investments are also welcomed and encouraged by the official government policy. Moreover International trade is of considerable importance to the Cyprus economy and due to the strategic position of the island it is also made easily.
Beneficial owners assure their anonymity as they do not have to disclose their details to the local tax authorities.
Cyprus facilitates an extremely well-developed infrastructure and an overflowing supply of high quality and well trained labour. The highly educated and particularly trained labour in Cyprus can guarantee the creation of an exceptionally professional and successful environment to work in.
The service sector contributes 70% to the total of the GDP in Cyprus and includes banking and financial services, insurance, advertising, legal, architecture and civil engineering, accounting and auditing, consultancy, design, electrical and mechanical engineering, market research, medical, printing and publishing, public relations, education, software development, tourism and related services.