Cyprus enjoys an international reputation as a place for the establishment and control of international business. The favorable tax regime and the geographical position, combined with the highest quality of services are some of the key factors for its success.
– Cyprus is a member of the European Union since 2004 and a member of the Eurozone since 2008. The membership of Cyprus in the EU, increased the Investors’ confidence in the reliability and security of the financial environment.
– The sophisticated financial and business infrastructure. Internationally acclaimed entities offering legal, accounting and banking related services.
– Highly skilled population with specialization in the finance industry – Cyprus is highly ranked with regards to the proportion of university graduates in comparison to its population
– Legal system based in English common law with amendments to incorporate EU directives
– Cyprus’s ideal geographical location connects Europe with the countries of the Middle East and Africa. The strong European influence on the values, the cultural, political and social life of its citizens, have given Cyprus its European identity
A Cyprus registered holding company (CRHC), with non-resident shareholders, features major tax advantages, such as:
– Corporate profit tax at a flat rate of 12,5%
– Double Tax Treaties (DTT) covering 40 countries including many EU countries, Russia and most members of the CIS
– Investment income from dividends is exempt from tax
– Profits from sale of securities are exempt from tax
– Dividends to non-tax residents are exempt from withholding tax
– Tax loss incurred during a tax year, is carried forward and set off against the profits of the next five years
– Group relief provisions
– Reorganization provisions
– No tax upon liquidation.
CRHC are commonly used as intermediaries from International groups and entrepreneurs when investing outside of Cyprus to receive tax free dividends, to utilize beneficially the Cyprus Double tax treaty network and for disposal of overseas subsidiaries as the gains are tax exempt in Cyprus.
The incorporation of a Cyprus company is cost effective and under normal circumstances it can be concluded within a few days.There are certain reporting requirements, in accordance with local regulations, such as keeping proper books of account of all transactions, assets and liabilities, preparing annual audited financial statements and submission of an annual income tax