Morison Patsalides -> About Cyprus

About Cyprus

CYPRUS – The Ideal International Business Center

Cyprus is situated in the eastern part of the Mediterranean sea, at the cross-roads of Europe, Africa and Asia. It enjoys a healthy and pleasant climate with dry summers and mild winters. Cyprus governmental structure is modeled on Western Democratic systems. It follows closely the United Kingdom legal system.

Cyprus is a full member of the EEC as from 1 May 2004.

One of the Government’s primary objectives of its policy is to attract foreign investment. To achieve this, it has offered incentives to non-residents encouraging them to establish legal entities for the purpose of managing their overseas affairs or offering services abroad from Cyprus.

Definition of International Business Company

An International Business Company (IBC) in Cyprus is essentially a Cyprus registered business owned by aliens.

Advantages


  • 12,5% tax rate on taxable profits.
  • No withholding tax on dividends paid to non-resident shareholders.
  • Dividend income is exempt from tax in Cyprus provided certain conditions are satisfied.
  • 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.
  • No Capital Gains Tax except on sale of immovable property situated in Cyprus.
  • A long list of countries have signed Double Tax Treaties with Cyprus.
  • There are no restrictions on import and export of currency.