Advantage of Cyprus

Cyprus has been and continues to be an attractive place for setting up an international business.

Numerous factors and incentives have contributed to the development of Cyprus as a key and successful international business centre.

KPSA undertakes the responsibility of setting up various types of an International Business Company as well as International Trusts.

Using a Cyprus entity in International Tax Planning offers the following advantages:

  • Reduction of the tax burden when and where the in come is generated therefore increasing the return on investment of an operation
  • Mitigation of the with holding tax on expatriation offunds
  • Offers the ability to use the wide network of Treatiesfor the avoidance of double taxation
  • Provides the confidentiality of the company's shareholders
  • There are no exchange control restrictions on international business activities
  • Security of property rights /attractive location for the establishment of an IP holding and development company (new IP Regime)
  • "Cyprus Digital Nomad Visa" Scheme – fornationals from non-EU and non-EEA countries
  • The availability of sophisticated banking facilitiesand many more.

The incentives given by the Cypriot legislation to the International Business Entities (IBC) and to the foreign employees include:

  • An established wide network of Double Tax Treaties
  • One of the lowest corporate tax rates in Europe at therate of 12,5%
  • Non-resident company's profits are tax exempt
  • Profits from sale of securities are tax exempt
  • No withholding tax is imposed on the payment of dividends, interest or royalties made from Cyprus to any country in the world
  • Tax exempt dividend and interest income subject to certain criteria
  • Dividend income received by the non - resident shareholders of a Cyprus Company is not subject to any tax in Cyprus
  • Cyprus tax is imposed on residents of Cyprus on their worldwide income
  • Completely tax-free interest from bank deposits heldby non-residents in Cyprus and many more.

The non-tax advantages enjoyed from setting an IBC in Cyprus include:

  • Excellent geographical position for clients operating within Europe and the Middle East
  • The Republic of Cyprus is a member of the European Union (EU) from 1st May 2004
  • Excellent climatic and living conditions
  • Low set up and maintenance costs of IBCs
  • The plentiful supply of highly qualified and skilled human capital
  • The availability of sophisticated banking, accounting and legal facilities
  • Confidentiality of the ownership of Cyprus companies can be maintained
  • Foreign employees and their family members can easily obtain work and residence permits
  • The IBCs and their expatriate employees are given the opportunity to buy immovable property in Cyprus.

Cyprus has been and continues to be an attractive place for setting up an international business.

Numerous factors and incentives have contributed to the development of Cyprus as a key and successful international business centre.

KPSA undertakes the responsibility of setting up various types of an International Business Company as well as International Trusts.

Using a Cyprus entity in International Tax Planning offers the following advantages:

  • Reduction of the tax burden when and where the in come is generated therefore increasing the return on investment of an operation
  • Mitigation of the with holding tax on expatriation offunds
  • Offers the ability to use the wide network of Treatiesfor the avoidance of double taxation
  • Provides the confidentiality of the company's shareholders
  • There are no exchange control restrictions on international business activities
  • Security of property rights /attractive location for the establishment of an IP holding and development company (new IP Regime)
  • "Cyprus Digital Nomad Visa" Scheme – fornationals from non-EU and non-EEA countries
  • The availability of sophisticated banking facilitiesand many more.

The incentives given by the Cypriot legislation to the International Business Entities (IBC) and to the foreign employees include:

  • An established wide network of Double Tax Treaties
  • One of the lowest corporate tax rates in Europe at therate of 12,5%
  • Non-resident company's profits are tax exempt
  • Profits from sale of securities are tax exempt
  • No withholding tax is imposed on the payment of dividends, interest or royalties made from Cyprus to any country in the world
  • Tax exempt dividend and interest income subject to certain criteria
  • Dividend income received by the non - resident shareholders of a Cyprus Company is not subject to any tax in Cyprus
  • Cyprus tax is imposed on residents of Cyprus on their worldwide income
  • Completely tax-free interest from bank deposits heldby non-residents in Cyprus and many more.

The non-tax advantages enjoyed from setting an IBC in Cyprus include:

  • Excellent geographical position for clients operating within Europe and the Middle East
  • The Republic of Cyprus is a member of the European Union (EU) from 1st May 2004
  • Excellent climatic and living conditions
  • Low set up and maintenance costs of IBCs
  • The plentiful supply of highly qualified and skilled human capital
  • The availability of sophisticated banking, accounting and legal facilities
  • Confidentiality of the ownership of Cyprus companies can be maintained
  • Foreign employees and their family members can easily obtain work and residence permits
  • The IBCs and their expatriate employees are given the opportunity to buy immovable property in Cyprus.
    Received in Cyprus  
    Dividends  
    %  
    Interest  
    %  
    Royalties
    %  
1
Andorra (47)  
0
0
0
2
Armenia
    0/5 (32)  
    5 (33)  
5
3
Austria
    10 (46)  
0
0
4
Azerbaijan (27)
0
0
0
5
Bahrain  
0
0
0
6
Barbados
0
0
0
7
Belarus
    5/10/15 (4)  
5
5
8
Belgium
    10/15 (1) (46)  
    0/10 (16) (46)  
0
9
Bosnia (28)
10
10
10
10
Bulgaria
    5/10 (19) (46)  
    0/7 (20) (25) (46)  
    10 (20) (46)  
11
Canada
15
    0/15 (8)  
    0/10 (11)  
12
China
10
10
10
13
CzechRepublic
    0/5 (30) (46)  
0
    0/10 (48)  
14
Denmark
    0/15 (34)  
0
0
15
Egypt (57)
    5/10 (58)  
10
10
16
Estonia
0
0
0
17
Ethiopia
5
5
5
18
Finland
    5/15 (37) (46)  
0
0
19
France
    10/15 (7) (46)  
    0/10 (9) (46)  
    0/5 (26)  
20
Georgia
0
0
0
21
Germany
    5/15 (2) (46)  
0
0
22
Greece
    25 (46)  
    10 (46)  
    0/5 (12)  
23
Guernsey
0
0
0
24
Hungary
    5/15 (1) (46)  
    0/10 (8) (46)  
0
25
Iceland
    5/10 (39)  
0
5
26
India
    10 (49)  
    0/10 (50)  
    10 (51)  
27
Iran
    5/10 (19)  
5
6
28
Ireland
0
0
    0/5 (12)  
29
Italy
    15 (46)  
    10 (46)  
0
30
Jersey
0
0
0
31
Kazakhstan(59)
    5/15 (60)  
10
10
32
Kuwait
0
0
5
33
Kyrgyzstan(27)
0
0
0
34
Latvia
    0/10 (42)  
    0/10 (42)  
    0/5 (43)  
35
Lebanon
5
    5 (16)  
0
36
Lithuania
    0/5 (40)  
0
    5 (46)  
37
Luxembourg(52)
    0/5 (35)  
0
0
38
Malta
    0 (22)  
    10 (46)  
10
39
Mauritius(53)
0
0
0
40
Moldova
    5/10 (19)  
5
5
41
Montenegro (28)
10
10
10
42
Norway
    0/15 (3)  
0
0
43
Poland
    0/5 (36)  
    0/5 (8) (46)  
    5 (46)  
44
Portugal
    10 (46)  
    10 (46)  
    10 (46)  
45
Qatar
0
0
5
46
Romania
    10 (46)  
    0/10 (8) (46)  
    0/5 (54) (46)  
47
Russia
    5/15 (6)  
    0/15 (61)  
0
48
San Marino (53)
0
0
0
49
Saudi Arabia (55)
    0/5 (44)  
0
    5/8 (45)  
50
Serbia (28)
10
10
10
51
Seychelles
0
0
5
52
Singapore
0
    0/7/10 (8) (23)  
10
53
Slovakia (29)
    0/5 (62) (46)  
    0/10 (8) (46)  
    0/5 (63) (46)  
54
Slovenia
    5 (46)  
    5 (46)  
    5 (46)  
55
South Africa
    5/10 (41)  
0
0
56
Spain
    0/5 (35)  
0
0
57
Sweden
    5/15 (1) (46)  
    0/10 (8) (46)  
0
58
Switzerland
    0/15 (38)  
0
0
59
Syria
    0/15 (1)  
    0/10 (8)  
    10/15 (13)  
60
Thailand
10
    10/15 (17)  
    5/10/15 (18)  
61
Ukraine (64)
    5/10 (21)  
2
    5/10 (15)  
62
United Arab Emirates
0
0
0
63
United Kingdom (31)
    0/15 (24)  
0
0
64
United States of America
    5/15 (5)  
    0/10 (10)  
0
65
Uzbekistan (27)
0
0
0

Cyprus has been and continues to be an attractive place for setting up an international business.

Cyprus has been and continues to be an attractive place for setting up an international business.

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