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Cyprus - an International Business Centre (Video)
Cyprus is ideally suited for international business due to the numerous benefits it has to offer including the following:
- EU and European Monetary Union Member State.
- Strategic geographical location - island at the crossroad of three continents, ideal for expansion in Europe, Asia and Africa.
- Extensive network of Bilateral Investment Treaties, with approximately 30 countries.
- Broad range of quality financial and business services - legal, tax, accounting and investment.
- Highly educated, qualified and multilingual workforce.
- Low set up and operating costs.
- Efficient business environment, accompanied by simple administrative procedures.
- Advanced transport and telecommunications network.
- High standard of living.
All the above, coupled with the numerous tax advantages that Cyprus offers, make the island, the perfect place for investors and business people.
A favourable Tax System
- Corporate Income Tax rate of 12.5% and standard VAT rate of 18% (19% from 13.1.2014).
- Extensive network of Double Tax Treaties, with 52 countries.
- Exemptions from tax:
-Dividend income received (subject to conditions).
-Profits of foreign branches of Cypriot companies (subject to conditions).
-Profits from the disposal of securities (including shares, bonds and debentures).
-No tax on capital gains from sale of property located outside Cyprus.
-Profits from the exploitation and/or disposal of intellectual property rights (80% exempt).
- No withholding tax on:
-Dividends paid to non-resident shareholders.
-Interest and most royalties paid from Cyprus.
- Cyprus implements internationally agreed tax standards - part of OECD’s “white list”.
- The Cyprus tax legislation is stable and straight forward.
- Relations between the business community and tax authorities are excellent and ensure the efficient taxation of the commercial and financial sector.