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.