WHY CYPRUS
Cyprus as financial centre
Cyprus has established itself as a international financial centre mainly for the following reasons:
- It has the most favourable tax system in the European Union (E.U.), following the OECD model, with a wide network of tax treaties. Its system is variable straight forward and completely consistent with the European Union regulations and enjoys the tax benefits through double tax treaties with more than 48 countries with which Cyprus signed double tax treaties.
- It has low corporate tax rate of just 12.5% which is one of the lowest rates in the European Union whilst until recently the tax regime was even lower (10% until 31/12/2012). Another major advantage of the Cyprus tax system is the fact that no withholding tax on dividends or interest paid is imposed to non resident recipients.
- It has excellent legal infrastructure, based on the English system.
- It has highly developed banking and professional services sector (accounting, auditing, legal, etc).
- It has abundant supply of educated and multilingual human capital.
- It has excellent telecommunications network, one of the best in the world.
- It has a location, as it is situated in the Eastern Mediterranean, where Europe, Asia and Africa meet.
- Its legal system is aligned with the EU policies through the implementation of EU directives being an E.U member.
- The recent introduction of the non-dom tax status, which mainly applies to foreign individuals relocating to Cyprus and the other tax benefits on emoluments especially those earning salaries above €100,000 p.a to the taxed on 50% of their emoluments together with the attractive citizens through scheme, render Cyprus one of the best choices for personal tax purposes and one of the most attractive E.U. destinations for companies.
In addition to the above, Cyprus is a sunny Mediterranean island with sunny days most of the year and has nice clean sandy beaches, offering itself for recreation.
Please contact us and we will explain how the Cyprus tax regime can offer uniquely a number of opportunities for your tax planning.
