Our firm can provide information and assistance on how to register and
administer International Business Companies in Cyprus.
Cyprus, as part of the accession process to the European Union and in
compliance with the OECD requirements against harmful tax practices has recently
effected a Major Tax Reform (since 1 January, 2003).
The European Union and O.E.C.D. accepted tax reform is expected to
greatly enhance Cyprus's competitiveness and make it an even more attractive
jurisdiction through which to conduct international business. The Tax and other
incentives of such International Business companies are presented below: Major Tax
and other incentives
- Establish Cyprus International Business companies with a tax rate of only
12,5% (One of the lowest in Europe).
- Use Cyprus long list of Tax Treaties entered with a number of countries
for the avoidance of double taxation for your international tax planning. Tax
planning can be defined as a legal arrangement of an entity's financial and
other affairs so as to minimize local or overseas tax liabilities.
- Pay dividends to overseas shareholders with zero withholding tax.
- Pay and receive dividends to and from Cyprus through Cyprus Holding
Companies with zero tax.
- Trading in Securities is completely exempt from taxation.
- Profits attributable to a permanent establishment abroad are exempt from
- Non- resident companies (i.e. Cyprus Companies managed and controlled from
abroad) will be taxable on their Cyprus source income only. No taxation will
apply on income from sources outside Cyprus.
- No Capital Gains Tax, whatsoever, except on the disposal of immovable
property situated on the island/or shares in a company which owns immovable
property in Cyprus.
- There are no Exchange Control restrictions as funds in any currency can be
kept both in Cyprus /or abroad and be freely transferred.
- The obtaining of residence and work permits for foreign employees and
resident permits for their families is considered relatively easy.
AN INTERNATIONAL ASSOCIATION OF INDEPENDENT