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Cyprus - an International Business Centre (Video)

Cyprus is ideally suited for international business due to the numerous benefits it has to offer including the following:

  • EU and European Monetary Union Member State.
  • Strategic geographical location - island at the crossroad of three continents, ideal for expansion in Europe, Asia and Africa.
  • Extensive network of Bilateral Investment Treaties, with approximately 30 countries.
  • Broad range of quality financial and business services - legal, tax, accounting and investment.
  • Highly educated, qualified and multilingual workforce.
  • Low set up and operating costs.
  • Efficient business environment, accompanied by simple administrative procedures.
  • Advanced transport and telecommunications network.
  • High standard of living.

All the above, coupled with the numerous tax advantages that Cyprus offers, make the island, the perfect place for investors and business people.

A favourable Tax System
 

  • Corporate Income Tax rate of 12.5% and standard VAT rate of 18% (19% from 13.1.2014).
  • Extensive network of Double Tax Treaties, with 52 countries.
  • Exemptions from tax:

-Dividend income received (subject to conditions).

-Profits of foreign branches of Cypriot companies (subject to conditions).

-Profits from the disposal of securities (including shares, bonds and debentures).

-No tax on capital gains from sale of property located outside Cyprus.

-Profits from the exploitation and/or disposal of intellectual property rights (80% exempt).

  • No withholding tax on:

-Dividends paid to non-resident shareholders.

-Interest and most royalties paid from Cyprus.

  • Cyprus implements internationally agreed tax standards - part of OECD’s “white list”.
  • The Cyprus tax legislation is stable and straight forward.
  • Relations between the business community and tax authorities are excellent and ensure the efficient taxation of the commercial and financial sector.

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