Overview

Cyprus has established itself as an attractive international financial center. It combines a convenient strategic geographical location between three continents (Europe, Asia and Africa), low tax rates (corporation tax rate is currently 12,5% which is one of the lowest in the European Union), financial stability and credibility as well as a long and growing list of international treaties for the avoidance of double taxation.

Cyprus is a full member of European Union (EU) as from 1st May 2004 and fully adopted the Euro as its official currency on 1 January 2008 having in this way full access to EU markets with all the privileges this entails. At the same time its accession to the EU obliged Cyprus to reform its tax system and bring it into line with EU Laws and Directives, the Code of Conduct and the Organization for Economic Cooperation and Development's (OECD) recommendations on Harmful Tax Corporation.

This regime, along with an extensive network of favorable tax treaties, enabled Cyprus to develop into one of the most successful international business, financial and commercial centers in Europe.

In particular, it capitalized on the good political and economic relations that it enjoyed with the former Soviet Union members to become the principal conduit for foreign investment in and out of Central and Eastern Europe.