Cyprus with an excellent infrastructure and a large number of trained and qualified professionals and strategic geographical position, is an attractive financial centre which combines the advantages of a traditional offshore centre with those of the full membership of the European Union. The business of its kind in Cyprus is dedicated to add real substance in their tax planning, in the form of completed operations on the island.
Despite the fact that there are a number of countries that have established themselves as reliable financial centers in the European Union which are able to offer some very attractive tax advantages, none of these countries have managed to combine these benefits to the same extent as Cyprus, which apart from the wide network of double taxation agreements and the full implementation of EU directives, has been put in an enviable position in both the European Union and globally.
The main features of the tax laws that determine the attractiveness of optimizing international tax structures are as follows:
- One of the lowest corporate tax rates in the European Union: 12.5%
- Extensive network of double taxation
- Access to all tax EU directives
- There is no taxation on profits made from selling Securities
- No tax is withheld on telegraphic transfers abroad
- Infinite store profit in Cypriot companies where shareholders are not tax residents in Cyprus (either directly or indirectly)
- Minimum exemptions on dividends received by a Cyprus company subsidiaries abroad and profits of permanent establishments situated abroad.
- Advanced tax system