About Cyprus
Cyprus as an International Financial CentreA key jurisdiction in international tax planning
Cyprus is a long established reputable International Financial Centre. It has gained this enviable position through its attractive taxation system and its excellent infrastructure facilities and services, being its location, banking system and the recognised legal and accountancy professions offering clear advantages over the traditional offshore jurisdictions.
Cyprus reputation was further enhanced following its accession to EU on 1 May 2004 which added to the Island’s impressive advantages. As part of the accession process towards full membership of the European Union, Cyprus reformed its tax legislation, which conforms with EU requirements and fully complies with the OECD initiative against harmful tax practices. With the new tax legislation, Cyprus maintains and enhances its competitiveness as an International Financial Centre. Cyprus is now firmly established as the ideal gateway for EU inbound and outbound investment.
The significant advantages that Cyprus has to offer to international businesses can be summarized as follows:
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Cyprus has access and applies fully all EU directives
Avoiding the use of offshore jurisdictions considered as “suspicious” amongst other business partners and government authorities
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Cyprus Corporation Tax Rate is at 12.5%, which is amongst the lowest tax regimes in the EU
Cyprus has the biggest network of double tax treaties
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Profit from the sale of securities including shares, bonds, options and other is exempt from taxation
Dividend income in most cases is exempt from taxation
No withholding taxes on payments to non-residents in respect of dividends and interest
Exemption from taxation (capital gains tax) of gains arising from the disposal of immovable property situated abroad
Exemption from taxation (capital gains tax) of gains arising from the disposal of shares of a company which owns immovable property situated abroad