Despite its size and the fact that it is an island, Cyprus is recognised as an “onshore” financial jurisdiction. It not only offers beneficial solutions for corporate taxation but also offers company formations providing investment platforms geared to the EU and EMEA regions.
Cyprus companies or entity formations are classed as onshore and therefore non-residents enjoy the same legal structure and set up and taxation as residents in Cyprus would.
Cyprus as an EU Member State, applies all EU directives and is “white listed” by the OECD, It meets international best tax practice and as such, enjoys shared benefits with other European Union companies and markets.
With an attractive taxation system for international businesses, and the lowest corporate tax rate in the EU (12.5%) Cyprus may be your ideal jurisdiction. It has 45 Double taxation Treaties in place and is considered as one of the lowest non-investment jurisdiction in the world. It’s Commonwealth status, location, political stability and relations with the other EU Member states makes it all more attractive.
It has a good infrastructure for servicing companies, enhanced by low labour costs and experienced personnel.
Non-resident companies and non-resident individuals benefit from tax exempt business profits with tax-exempt gains on the trading and disposal of certain securities and tax-exemption on dividend income (subject to certain criteria)
The low margins facilitate intragroup loans, either out of loans or equity.
Holding companies and financing companies are exempt from taxation on interest on deposits.
Cyprus adheres to the EU parent-subsidiary directive, EU mergers directive, EU directive on mutual assistance and cooperation and the EU royalty and interest directive