After the crisis in our banking sector in 2013, Cyprus proves that it remains an attractive jurisdiction for International Business Companies. Specifically:
- Cyprus has one of the lower tax rate for companies in the European Union, calculated at 12.5% on the taxable profits
- There is no withholding tax on dividends paid from Cyprus companies to non-residents
- Dividends received in Cyprus companies from foreign companies are not subject to defence tax. This provision does not apply though:
1. if the foreign company paying the dividend, is engaged directly or indirectly in more than 50% in activities which result in income from investments and
2. the foreign tax on the foreign company’s income (the company which pays the dividend) is materially less than the tax charge on the Cyprus Company
- There is no tax on the sale of shares (unless the company which shares are being sold has immovable property in Cyprus)
- Cyprus has signed treaties for the avoidance of double tax with many countries
- EU VAT registration simplifies EU trading (triangular trade)
- Cyprus has very good relations with all countries and has also an excellent infrastructure in order to satisfy the needs of businessmen and others using Cyprus as their basis for business operations or living
- Cyprus is between 3 continents, is a member of the European Union and is ideal for promoting international trade and financial cooperation
- Organisation for Economic Cooperation and Development includes Cyprus on the White List of jurisdictions that have substantially implemented the internationally agreed tax standards.
- Cyprus is ranked 39th out of 189 economies for the ease of doing business by World Bank (2014 The Business Report).
- The Cyprus legal system is based on British Common Law principles but is also in concordance with European directives.
- The workforce in Cyprus is well trained with almost 40% of the Cypriot population between 25-64 having acquired postsecondary education, higher than the European average of 30%.
- Non-Cypriot investors, who purchase property in Cyprus of at least €300.000 and have a secure and steady annual income transferred on a regular basis from abroad, are entitled to apply for Permanent Residence.
- Cyprus citizenship (e.g. passport) can be obtained (and thus EU citizenship) for investors and their families who are willing to invest €2m in Cyprus.
- Confidentiality is protected by legislation and shares can be held by nominees and anonymity is safeguarded.
- Cyprus is ideal for royalty routing structures and IP registration, because as a jurisdiction it offers multiple advantages.”
The above are a few of the advantages enjoyed by International Business Companies.