ABOUT CYPRUS

Cyprus is a modern country that enjoys a strategic geographical position. It lies at the crossroads of three continents, Europe, Africa and Asia, thus provides unrivalled access and travel opportunities. With its excellent flight connections and firstclass airports, the island is perfectly placed for working and travelling within and beyond the European Union. Cyprus has a rich heritage and diverse culture, beautiful beaches with the cleanest bathing waters in Europe, fresh air, a wonderful Mediterranean climate and cosmopolitan cities with an abundance of amenities. The island offers a low cost but high standard of living and is a very popular year round destination for Europeans seeking a coastal or golf holiday.

Cyprus has a modern, free-market, service based economy and is a favoured business destination due to its strong set of business and taxation advantages. Additionally, the island is very safe and stable making it an ideal location for families and students. Cyprus is rapidly recovering from recent economic turmoil thanks to significant activities in the shipping, tourism, financial & legal services sectors. Cyprus is an emerging regional energy hub, since the discovery of huge hydrocarbon reserves in its Exclusive Economic zone the island has seen a surge in foreign investment and development.

Full EU member since 2004

  • Excellent British education
  • Beautiful scenery & very low crime rate
  • Strategic location enables easy access to Europe, Africa & Asia
  • Excellent year-round climate
  • Advanced infrastructure
  • No inheritance tax
  • Excellent health care system
  • Relatively low cost & high standard of living
  • English widely spoken
  • Very clean air & the cleanest bathing waters in Europe!
  • Efficient & transparent British based legal system
  • Euro currency

WHY CYPRUS

One may easily identify many positive factors in support of investing in Cyprus. The weather is beautiful, with lots of sunshine for the majority of the year. The cost of living is relatively low, as is the taxation rate in comparison to other EU member states. Although Greek is the official language English is the widely spoken in Cyprus. The people are friendly and accommodating and life is laid-back and relaxing. For most people looking to purchase property or live here, the financial and legal aspects of Cyprus law are similar to that of the United Kingdom.

  • Cyprus became an EU member on 01.04.2004
  • Modern banking sector with property lending facilities
  • Freehold property with full ownership
  • Legal system based on English common law
  • Adopted the Euro in 2008
  • Low prices compared to other common ‘sun’ destinations
  • Low cost of living, and low crime rates (Mercer index)
  • Low taxation, one of lowest in EU (from Forbes index)
  • Large infrastructure development - Golf Courses and Marinas
  • UNESCO world Heritage sites
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Cyprus Overview

Business & Taxation

  • Cyprus’ current tax system is in full compliance with the EU and OECD.
  • Taxable profits of all Cypriot companies are taxed at the rate of 12.5% (however, effective corporate tax rate is NIL for most international transactions through Cyprus).
  • Extensive double tax treaty network (Cyprus has double taxation treaties with Austria, Bulgaria, Canada, the People's Republic of China, the Czech Republic, Denmark, Egypt, France, Germany, Greece, Hungary, India, Ireland, Italy, Kuwait, Malta, Norway, Poland, Romania, Russia, (Armenia, Belarus, Kurdistan, Moldova, Tajikistan, Turkmenistan and Ukraine) Slovakia, South Africa, Sweden, Syria, the United Kingdom, the United States of America, the former Yugoslavia (Serbia and Montenegro) and other countries.
  • Gains from the disposal of securities are tax exempt.
  • Profits earned from a permanent establishment abroad are fully exempt from corporation tax (under certain conditions).
  • Dividend income received in Cyprus from a foreign corporation is wholly exempt from taxes in Cyprus (under certain conditions).
  • Interest income earned from trading activities, including interest which is closely related with trading activities, is subject to income tax at 12.5%.
  • No withholding tax on dividends and interest paid to non-residents of Cyprus. Also no withholding tax on royalties arising from sources outside Cyprus.
  • Group relief provisions for companies resident in Cyprus.
  • Capital gains are not subject to tax, except on sale of immovable property situated in Cyprus.
  • No Import Tax: European citizens who become permanent residents in Cyprus and who owned and used a car in their country for at least six months can bring it into Cyprus and they will not pay any Import Tax. Furniture can be imported free of any taxes by Europeans or non-Europeans who become permanent residents, provided that it is for personal use and is not brand new.