Tax advantages of Cyprus

Favorable corporate tax system offering one of the lowest tax (12,5%) regimes in Europe
Extensive network of double tax treaties
Probably the most favorable holding company jurisdiction in Europe
No withholding tax on dividends paid to non-residents shareholders
No taxation on dividend income received by Cyprus Companies
Exemption from taxation of capital gains (with the exemption of gains relating to disposals of immovable property situated in Cyprus
Group relief for tax loses
Non Cyprus tax resident companies are taxed only on the income derived in Cyprus
Sale of securities (shares, bonds etc.) are tax free
No tax on group reorganizations (mergers, demergers, transfer of assets etc.)
No CFC or ‘thin capitalization’ rules
Advantageous intellectual property rights box regime (effective tax 2,5%)
Adoption of E.U. directives
No inheritance tax
Advantageous tax system for pensioners and expatriates

Established international business and shipping center over the past four decades
Strategic geographical location in the eastern Mediterranean, a crossing point
Located between Europe, Asia and Africa
Full member state of the European Union as from 1st of May 2004
Full member of the European Monetary Union
Highly qualified, multilingual, talented professional workforce
Reputable international shipping center
World class professional services
Legal system based on English Law
Excellent telecommunications and air connections
Excellent banking facilities with worldwide networks
Political stability with a presidential democracy political system
Macro-economic stability with successful economic performance
One of the most popular overseas property and tourist destinations
Advanced telecommunications network and transport infrastructure
No exchange control restrictions
No formalities for obtaining work permits for EU citizens
Anonymity of the beneficial owners of a company
Full Confidentiality
Low operating costs
High level of standard of living
Low crime level
Excellent health care system
Excellent climate throughout the year