Cyprus

Cyprus benefits greatly from its strategic geographical position in the Eastern Mediterranean as it is at the crossroads of three continental zones acting as a vital gateway to Europe, the Middle East, Africa and Asia. As an EU member and a constantly evolving international financial centre, Cyprus has become a pivotal business hub attracting countless commercial endeavours, supporting essential partnerships and boasts unlimited untapped investment opportunities.

  • Full member of the European Union since 2004.
  • Adoption of EU Directives.
  • Extensive network of favorable Double Tax Treaties.
  • No withholding of tax on payment of dividends, interest and royalties.
  • Flat corporation tax rate of 12,5% (one of the lowest in EU).
  • Tax exemption on profits of international business branches if their management and control is outside Cyprus.
  • No inheritance taxation.
  • No taxation of capital gains except on sale of immovable property situated in Cyprus.
  • Full stamp duty exemption on contracts entered into by international business entities.
  • Residence and work permits for foreign employees and their families can be readily obtained if they maintain an office in Cyprus;
  • No CFC or thin capitalisation rules.
  • No exchange control restrictions.
  • Highly qualified and multilingual labor force.
  • Efficient accounting, legal and banking services.

Cyprus Legal System

  • Aligned with UK Legal Structure & Legislation

  • Fully compliant with EU Legislation

Cyprus is an independent, democratic state and a member of the British Commonwealth, Council of Europe, IMF, UN, World Bank and WTO and is party to several conventions worldwide.

As a former British Crown Colony until 1960, Cyprus possesses close ties to the United Kingdom and is therefore aligned to the UK legal structure and legislation. This legal system is also in line with EU legislation which consists of EU Directives and Regulations. Legal framework advantages include the facilitation of corporate services such as the registration process, which offers efficient and timely solutions. Moreover, the Generally Accepted Accounting Principles (GAAP) in Cyprus form part of the International Financial Reporting Standards (IFRS) as adopted by the EU, which positively affect the procedure for formation of companies in Cyprus.