Cyprus Benefits

Simplified and Transparent Tax Regime

Cyprus has in place a simplified, effective and transparent tax regime that is fully compliant with the European Union laws and regulations.

In addition, the Organization for Economic Cooperation and Development (OECD) includes Cyprus on its “white list” as one of the 45 countries that have introduced and implemented the highest of internationally agreed standards on harmful tax practices.

One of the lowest Corporate Tax rates in the European Union

Cyprus has one of the lowest corporate tax rates in the European Union. Companies are taxed with a tax rate of 12,5% on their profits while enjoying a number of generous tax exemptions.

Strategic Geographical Location

Cyprus is the South-eastern border of the European Union, situated in the Eastern Mediterranean at the crossroads of three continents – Europe, Africa and Asia and within few hours flight from Europe, North Africa, Russia, Dubai and other cities in the area.

The strategic geographical position of the island is one of the main factors that contributed to its development as an international business and financial center promoting global trade and co-operation in the region.

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Legal and Regulatory Framework

Cyprus has a comprehensive, modern and forward-looking legal and regulatory framework based on English Common Law principles and is in line with the European Union laws and regulations.

The country’s legal framework is widely recognized as a business-friendly and effective system, that allows for reliable and transparent business practices.

High level of Professional Services

The services sector in Cyprus is well developed and forms the major part of the economy of the country. The role of the professional firms of qualified Accountants, Lawyers, Administrative Service Providers, Banks, Finance and Insurance companies is vital to the success of the country.

Skilled Workforce at Competitive Cost

Cypriots are highly educated, qualified and almost all are bilingual, if not multilingual. Most importantly, however, business is still done with a personal attention and care. The cost of the skilled labour is very competitive compared to other European and international business centers.

Extensive Network of DDT

Cyprus has signed double tax treaties with more than 60 countries and is in the process of negotiating the agreements with some other countries.  The layout of the Cyprus taxation treaties is in accordance with the requirements and standards of the OECD (The Organization for the Economic Cooperation and Development) model tax treaty.

Leading Maritime Centre

Cyprus is an internationally renowned shipping center. Following the introduction of a tonnage tax system in 2010, Cyprus attracted increasing numbers of shipping companies from across the world to take advantage of the opportunities offered.

Cyprus is:

  • the 10th largest merchant fleet in the world / and 3rd in the European Union, and
  • the 2nd largest Ship Management Centre in the world / and the largest in the European Union

Outstanding Infrastructure and Communications

Cyprus has an excellent infrastructure with modern road network, extensive port facilities and two new international airports. The Government intends to actively promote the island as a destination hub for businessmen and tourists connecting Europe with Middle East, Asia, Africa, and the rest of the world.

The telecommunications network ranks amongst the best in the world.

The Global Competitiveness Report 2015–16 of the World Economic Forum ranks Cyprus 44th among 140 countries in relation to the Overall Infrastructure Quality.

Member of European Union and EMU

The accession of the Republic of Cyprus as a full member to the European Union was on 1 May 2004 while on 1 January 2008, Cyprus joined the European Monetary Unit (EMU) with a robust economic performance.

Full Compliance with European Union Laws and Regulations

Following the accession to the European Union, the Cyprus law, which is based on English Common Law, was amended to meet European Union requirements.

The legal and regulatory framework is fully compliant with the European Union, the Financial Action Task Force on Money Laundering (FATF), the Organization for Economic Co-operation and Development (OECD) and the Financial Stability Forum.

Comfortable Standard of Living

Climate

Cyprus has a healthy and pleasant Mediterranean climate with dry summers and mild winters with more than 300 days of sunshine a year. Most of the rain falls during the months of November to April.

Tourism, sports and leisure

Cyprus offers a wonderful environment with beautiful sandy beaches, traditional and rich Cyprus cuisine, golf fields, marinas, water sports and other activities, a quality standard of living but above all, hospitable and friendly people.