Doing Business in Cyprus

Commercial reasons

Membership of European Union as from 1 st May 2004
Anonymity of the beneficial owners of a company
Availability of English speaking schools
High quality standards of professional services
Excellent telecommunication system
Freedom from exchange control
High standard of banking system

Strategic geographical location being at the cross-roads of Europe, Asia & Africa No formalities are present for obtaining work permits for EU citizens Provision of professional services at competitive & reasonable prices Low operating costs Pleasant climate being an island in the northeastern basin of the Mediterranean Sea High level of standard of living Low crime level English language is widely spoken Excellent health care system

Tax Reasons
The lowest tax system in the European Union at 10 % on taxable profits
One of the most favorable Holding company jurisdiction(even a small holding of 1 % in foreign companies entitles the Cyprus Holding company to enjoy substantial tax benefits)
Availability of Group losses relief without any time restrictions, under certain conditions
No withholding tax on dividends paid to non-residents shareholders
Exemption from taxation of capital gains apart from the disposal of immovable property situated in the Republic of Cyprus
A sophisticated network of double tax treaties in operation
Sales of shares and securities are tax free
No taxation on dividend income
VAT optional registration allowing them to claim back any VAT imposed on local expenditure and services offered
Non resident companies are taxed only on the income derived in the Republic of Cyprus
Salaries from services outside Cyprus for more than 90 days in a non-Cypriot resident employer or in the permanent establishment of a
Cypriot resident employer are not taxed in Cyprus
Low income tax rates for expatriates
No inheritance tax