About Cyprus Companies including International Business Companies (IBC’s)

Cyprus is a well established and highly respected centre for the conduct of commercial, professional, financial and maritime activities within the region and around the world. Today the island is one of the major business centres in the world and the factors that have contributed towards this outcome are described below:

• The island’s strategic location is offered as an ideal location for the establishment of regional or international headquarters taking into consideration the convenient accessibility by sea and air and the excellent infrastructure.
• Wide and increasing network of double tax treaties offering tremendous possibilities for tax planning (see international tax planning).
• The legal framework and all statutes regulating business matters and procedures are based essentially on English law.
• Generous tax incentives for legal entities. The taxable profits of all Cyprus resident companies are taxed at the rate of 10%. Non-resident Companies are taxed on profits from a business activity which is carried out through a permanent establishment in Cyprus, rentals from immovable property located in Cyprus and profits from the sale of goodwill.
• Ship management and ship owning companies are subject to special provisions relating their taxes.
• There is no withholding tax on payments of dividends or interest to non resident shareholders.
• Low personal tax rates for individuals working in Cyprus (see new tax law).
• For employees who were resident outside Cyprus and who move to Cyprus to be employed by a Cypriot employer, during the first 3 years they can claim an exemption of 20% of their salaried income up to a maximum annual amount of €8.550.
• Freely transferable accounts of any currency may be kept either in Cyprus or anywhere abroad without any exchange control restrictions.
• Residence and work permits for the foreign employees and residence permits for their families can be readily obtained.
• Cyprus provides a fairly high, European standard of living while at the same time it remains a fairly inexpensive country.
• Most of the professionals, especially accountants, lawyers and consultants are European trained and members of the respective Institutes and Bodies. They are therefore, able to provide professional services of an excellent standard.
• Non-residents may acquire real estate in Cyprus (residential property or offices) for their private use. The approval of the Council of Ministers is required and the purchase consideration must originate from external funds.