Cyprus is a full member of the European Union since the 1st of May 2004 and has become a very modern, international, business and financial centre. Capitalizing on its strategic geographical position, its competitive tax regime, highly educated workforce, as well as the efficient legal, accounting and banking services the island offers unique incentives for investors and international businesses. 

More specifically advantages/benefits offered to companies with Cypriot tax residency are:

  • Flat corporate tax rate of 12,5%
  • Double tax treaties with over 50 countries
  • No tax on dividends payable to non-Cypriot tax residents or Cypriot Tax residents which are non-domiciled of Cyprus
  • No withholding tax on interest payable to non-Cypriot tax residents
  • No tax on dividend income (some exemptions apply)
  • No tax on profits from operations of permanent establishments maintained outside Cyprus
  • No tax on profit from sale of shares, bonds and other securities
  • No capital gains tax from the sale of immovable property located outside Cyprus
  • Excellent infrastructure
  • Excellent communications
  • Availability of free zone
  • Highly educated work force