About Cyprus

The island of Cyprus is an independent country and a full member of the European Union situated in eastern Mediterranean with a long and rich history.

With the establishment of tens of thousands offshore companies in the island, Cyprus is now a well established business and financial centre. This has been achieved mainly because of:

-       government policy and secrecy

-       geographic location

-       excellent infrastructure

-       high standard of living

-       tax planning

Taxation 

Companies that are tax residents in Cyprus are taxed on income arising in Cyprus and worldwide.

Companies that are not tax residents in Cyprus are taxed on income arising in Cyprus only.

Tax resident in Cyprus means a company that has its management and control in Cyprus.

Some of the advantages enjoyed by the offshore companies are:

• The tax rate is 12.5% on the net profits
• No withholding tax on dividends payable to non residents
• Free movement of profits
• No capital gains tax
• No tax on salaries of employees outside Cyprus
• Double tax treaties with many countries  
• Anonymity of the beneficial owners through the use of nominees
• Dividend income is fully exempt from income tax
• Profits on disposal of shares and other securities are not taxable