Benefits of Cyprus

During the past thirty years and especially after its accession as a member of the European Union, in May 2004, Cyprus has developed into a formidable business and financial centre, renowned for its high quality services.

Setting up an international business company in Cyprus has numerous advantages including:

• Corporation tax rate is 12.5%, one of the lowest rates in the European Union
• No withholding tax at source on dividends paid to non-residents shareholders
• No taxation on dividends received( under specific conditions, please see dividends section in Cyprus tax facts)
• Sale of titles are tax exempt
• Extensive network of double tax treaties
• Effective tax on royalty income at 2.5%
• Exemption of capital gains tax on disposals of properties ( except if the property is located in Cyprus)
• Tax incentives for non-residents deciding to relocate and work in Cyprus
• No thin capitalization rules
• No tax on group reorganizations
• Strategic location
• Very high literacy rate
• High skilled workforce
• Legal system is based on English common law
• Very low crime rates
• An attractive tourist destination and an excellent place to relocate
• Excellent climate conditions
• Advanced Telecommunications network and infrastructure