In addition to the favourable tax environment, Cyprus offers the International Business Companies which are serviced from Cyprus an increased reputation over other offshore jurisdictions, due to its EU membership and its compliance
with European law. It also benefits from a well regulated and secure financial infrastructure, with high level of banking, accounting, auditing, taxation and legal services.
- 12,5% tax rate on taxable profits
- No withholding tax on dividends paid to non-resident shareholders
- Overseas dividend income is exempt from tax in Cyprus irrespective of its source, provided certain conditions are satisfied. Where the exemption does not apply, 20% defence tax is payable for the year 2013 and 17% defence tax is
payable as from 1.1.2014, but credit for foreign tax suffered is given irrespective of the existence of a treaty.
- No tax on the disposal of shares
- Profits of a permanent establishment maintained abroad by a Cyprus company are exempt from tax in Cyprus under certain conditions.
- Profits on sales of property (other than property in Cyprus) are not subject to Capital Gains Tax.
- A long list of countries have signed Double Tax Treaties with Cyprus.
- There are no restrictions on import and export of currency
- Anonymity can be maintained, if required, of the company shareholders and directors by the use of persons or trustee companies in Cyprus who can act and hold the shares in trust for the beneficial owners.
- Strong infrastructure and educated workforce
Due to its geographical position Cyprus acts as a connection between Europe, Africa and Asia for foreign investors wanting to transact their business in a well organized and efficient manner. Cyprus governmental structure is modeled
on Western Democratic systems and follows closely the United Kingdom legal system.