Cyprus is a member state of the European Union since 2004 and has a strong legal system as well as more than 30 years of experience as an international business centre, with highly qualified professionals and sophisticated infrastructure. It is a country with a strategic location, long history and culture, as well as nice weather with almost year-round sunshine.
The economy in Cyprus has faced challenges as a result of the economic and banking crisis. However, it is now in the course of recovery recording positive growth rates. Dynamic sectors like energy, professional services, tourism, mutual funds, shipping, construction and real estate are enhancing this trend.
Cyprus offers an attractive and efficient tax regime which features, among others, the following:
• 12.5% tax on company profits, one of the lowest corporate tax rates in the EU.
• Extensive and expanding network of favourable Double Tax Treaties.
• Non Cyprus domicile individuals are exempted from defence on dividends, interest and rents.
• No tax on corporate dividend income or on profit on sale of shares.
• VAT rate for acquisition of residential property can be as low as 5%.
• Capital gains from the sale of immovable property situated outside Cyprus are tax exempt.
• Option for overseas pensions to be taxed at 5%.
• Applicability of all EU directives.
• Advanced ruling practice exists.