Cyprus is considered without a doubt the most strategic territory in Europe, and in some respects the whole world. The 12.5% tax on corporate profits is only one of the advantages of this jurisdiction. British-style legislation on Trusts and the wide spread use of foreign-owned companies make trust management and shareholding flexible and available to all. Companies in Cyprus can be registered in a few days, fulfilling tax burden, including VAT, within two to three days of establishment.
A recent amendment eliminated personal tax on corporate dividends; as a result, those who transfer their residence to Cyprus for business reasons may fall into this privileged category and pay a total amount (including personal and corporate taxes) ranging from 2.5% to 12.5 %. The island of Cyprus has entered into double taxation treaties with 27 other countries, including many countries with high rates in Western Europe, and many Central and Eastern European states. Cyprus is an island with low rates of taxation, and as such is a particularly strategic destination for firms catering to emerging markets. Additionally, the economy is strong and stable, and business costs are generally low.
If a Cypriot company is to be established, any private company based in Cyprus that is 100% foreign-owned is considered offshore, although it is also identified by the term International Business Company (IBC). In any case, there is no difference in tax treatment between an offshore company and a normal Cypriot company.
|Average start-up times||8 days|
|Availability of pre-established (ready-made) companies)||Yes|
|Published information about the company's directors||At the time of registration, the names of partners will appear in the Business Register; however nominee (figurehead) service providers are available.|
|Legislation and controls||
Cypriot businesses are regulated under the Cyprus Companies Law, Chap.113 and the Cyprus Lawyers' Order is the reference authority.
|Confidentiality||Bearer shares are not permitted|
|Risk indicators||Average political risk: 21%