The idea of promoting Cyprus as an international business base first developed after the Turkish invasion of 1974, when the island's authorities decided that an expansionary economic policy should be followed to encourage the inflow of foreign investment. An amendment to the Income Tax Laws in 1975 put these aspirations into practice and since then the way has been clear for Cyprus to assert itself as an international business centre.
From these early beginnings the Cypriot authorities have shaped economic policies to attract foreign investments of a high quality and to ensure that international business entities enjoy an existence which is as beneficial as possible. The aim has also been to increase incentives and to create an environment which lends itself to tax planning on a worldwide level. Consequently, applications for the registration of international companies have always been handled with speed and efficiency by all relevant authorities.
In 1977 the existing tax incentives were refined and extended by measures which further improved the tax rates enjoyed by international business entities and their employees.
Thereafter the number of international business companies being registered annually in Cyprus grew by leaps and bounds as did the volume of companies incorporated abroad and registering a place of business on the island. Today there are more than 40,000 international entities registered in Cyprus and a significant number of them maintain fully-fledged offices on the island.
Accordingly, it is anticipated that the status of the island as a major international business centre will continue to expand and flourish.
The purpose of this publication is to assist clients and associates in clarifying and appreciating the range of opportunities which are available in or through Cyprus. Although every effort has been made to provide the reader with a clear and comprehensive picture of the island's beneficial regime, it should be appreciated that is not possible to cover all aspects comprehensively in a publication of this size.
Individuals or companies who are seriously considering using Cyprus for any of their international business activities are advised to obtain expert professional advice before taking positive action.