Why Cyprus

After Cyprus joined the European Union on the 1st May 2004 the new tax regime has been more attractive, even for international tax planning through Cyprus. The wide network of Double Taxation Treaties in conjunction with the comparatively low corporate tax of 12.5% has made Cyprus an attractive jurisdiction for international tax structures and deals. However not only the tax regime but also a numerous of other factors established Cyprus as one of the most attractive business center internationally

  • European Union and European Monetary Union Member State.
  • Strategic Location at the crossroads of three continents.
  • Robust Credit Ratings.
  • Low Corporate Tax Rate in EU – 12.5% on profits.
  • Liberal Foreign Direct Investment Regime allowing up to 100% foreign participation in most sectors of the economy.
  • Normally no exchange control and freedom of movement of Euro currency.  For the time being it is under the restrictions of the Central Bank of Cyprus
  • Double Tax Treaties with more than 45 countries.
  • Bilateral Agreements of Cooperation in Merchant Shipping with 23 countries including    major labour supplying countries.
  • Low Set Up and Operating Costs for companies.
  • VAT exemption for international transport services when the effective use and enjoyment of the services takes place outside the EU.
  • Special taxation for shipping companies: Shipowners, charterers and ship managers participating in the Cyprus tonnage tax system, are exempted from income tax and any other tax or levy on dividends paid to shareholders, on interest earned on working capital and on any profit made from the sale of a qualifying ship.
  • No estate duty on the inheritance of shares in a shipowning company.
  • No income tax on the emoluments of officers and crew on board of a Cyprus ship.
  • No stamp duty on ship mortgage deeds or other security documents.
  • Signatory to numerous international maritime conventions.
  • Modern and Efficient Legal, Accounting and Banking Services based on English practices.
  • Advanced Telecommunications Network and easy access by air and sea.
  • Highly Educated, Qualified and Multilingual Personnel.
  • Poised for Long Term Growth.
  • Enviable Quality of Life.

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