Cyprus is the third largest island in the Mediterranean and is strategically situated at the crossroads of Africa, Europe and the Middle East. It is a member of the European Union and is a presidential republic. The Head of state and government is elected by a voting process for a five-year term. The Official languages are Greek and Turkish however English is widely used in business. The island offers a pleasant climate with dry summers and short mild winters, enjoying around 300 days of sunshine annually.
– As a member of the EU, it is in full compliance with all EU directives and benefits from all EU treaties, regulations and directives, as well as freedom in movement of capital.
– Strategically situated in the Eastern Mediterranean, between 3 continents, with the potential to be the command centre of any business.
– Comparatively lower set-up, operation and maintenance costs of international businesses.
– Highly skilled professional sector
– High standard of living
– Pleasant climate and low crime rate.
– Favourable tax regime for business.
– Excellent telecommunications and road infrastructure.
– A selection of top standard private English language schools.
– High standard of medical treatment.
– Recent discoveries of natural gas make Cyprus one of the most attractive countries businesses of the region.
– Main shipping centre of the Middle East
– Innovation hub with very attractive tax regulations and very friendly business environment.
GENERAL TAX ADVANTAGES
– 12.5% corporate tax on profits
– A combination of wide network of favourable tax treaties with almost 50 countries
– Profit from the sale of securities is 100% exempt from corporation tax with the exception of gains derived from immovable property situated in Cyprus.
– No withholding tax on dividends and interest paid to non- residents of Cyprus.
TAX ADVANTAGES FOR INTELLECTUAL PROPERTY
Businesses need to take advantage of their most valuable assets which depending on the activity of the company may be its intellectual property. Following the introduction of the IP Box in Cyprus, considerable savings can be achieved by using a Cyprus company as the owner of certain Intellectual Property Rights and having it license the use of the rights direct to the end users.
The so called IP Box, which contains a package of measures to promote economic growth and aims to boost Cyprus’ predominantly service-oriented economy, has a number of very attractive tax incentives.
Companies registered in Cyprus have the following obligations imposed on them regardless of whether a company is active or dormant:
1. An annual levy of EUR 350 needs to be paid to the Registrar of Companies.
2. Every new company is required to register with the Inland Revenue Department which issues a Taxpayers Identification Code to the company.
3. VAT- Companies may be legally obliged, either now or in the future, to register for VAT, and/or to charge VAT on the goods or services they supply depending on a variety of factors.
4. Audited financial statements need to be prepared and filed. When the company is a newly registered company, the first financial statements need to be filed at the Registrar within eighteen months of its incorporation. After this, the company needs to file its financial statements every 12 months (by the end of each tax year which is December).
5. Every company having a share capital must file an annual return with the Registrar of Companies including details of registered office, shareholders, director, secretary etc. This must be accompanied by a copy of the financial statements of the Company of the previous year translated into Greek.
6. Incorporation tax of 12,5 %
In case you wish to incorporate a Cyprus company, you can download our Application Form HERE.
As you soon as you send us the Application Form to firstname.lastname@example.org we will get back to you with our offer.
In case you need any clarifications or you have any questions, do not hesitate to send us an email to email@example.com
Disclaimer: Any tax advice contained herein is intended to provide a brief guide. Appropriate professional advice should be obtained.