INTRODUCTION
The Legal System of Cyprus is based on Common Law. Its economy operates based upon an open, market driven principle, with favorable tax regimes for the incorporation of companies and investments. Moreover, Cyprus is characterized by a high per capita income and renowned as a European Union center for foreign investments, offshore businesses and activities.
SOME FACTS
- Affiliate to more than 50 double taxation treaties
- Low corporation tax rate
- Low annual maintenance fees of corporation
- One of the lowest corporation tax rates in the EU, which is 12.5%
- Short time frame for the registration of a new company (approximately 5-7 days)
- Profits from the sale of shares in the stock exchange are tax free
- Profits from the sale of shares not in the stock exchange are tax free provided no real estate in possession
- Non-domiciled tax residents are exempt from tax on dividend and interest income
INSIGHT
Cyprus Permanent Residence and Citizenship Schemes are considered to be one of the strongest in the world since they provide several significant benefits to the investors, as well as, an advantageous flexibility towards the investors that reside in non EU member states, which includes, their family members under 18 years old as well.
Cyprus allows the use of nominee Directors, Secretary and Shareholders therefore there is no obligation of exposure of the Ultimate Beneficial Owner (UBO) in the public Company Registrar Record.
Cyprus is the most well-known EU country for offshore company formation and Trusts. The Cyprus International Trusts are exempted from income tax, capital gains tax, special contribution or any other taxes. Additionally, there is no estate duty or inheritance tax in Cyprus.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.