The Cyprus Government worked hard to create a favorable offshore tax regime while at the same time maintaining a normal-looking domestic economy, albeit with rates of taxation that are low by international standards. The success of this programme is attested by the tens of thousands of offshore companies registered in Cyprus since 1975. However, the island's entry to the EU in 2004 meant a restructuring of the tax regime, which took place on 1st January 2003. Domestic and offshore companies alike now pay 10% tax.
Cyprus has double-tax treaties with more than 40 other countries, including most major Western 'high-tax' countries, and most Central and Eastern European states. This is unusual for an international offshore financial centre and the effect is that Cyprus is a very effective location for holding and investment companies aimed at emerging markets.
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COUNTRY:
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CYPRUS
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Region:
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Europe
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Currency:
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Euro (EUR) (€)
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Languages:
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Greek, English
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Time Zone:
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UTC +2
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Phone Code:
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+357
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Communications:
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Good
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Formation Cost:
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2800 - 4600 USD$
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Formation Time:
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5 - 9 days
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Maintenance cost:
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1600 - 2200 USD$
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Suitable for:
- Wealth Management,
- Treasury Management,
- Shipping,
- Yachting,
- Intellectual Property/Licensing,
- Holding Companies,
- Property Ownership
Vehicle Types:
- Limited companies,
- public limited companies,
- branches,
- general partnerships,
- limited partnerships,
- sole proprietorships and trusts
Capital primary business districts:
Nicosia, Limassol, Larnaca
Good Relationships:
Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Sweden, United Kingdom
Bad Relationships:
Burma, Egypt, Iran, Korea (Democratic People's Republic of), Libya, Somalia, Sudan, Syria, Turkey
Tax Burden - Business:
Light
Tax Burden - Individual:
Moderate
Headline tax rates:
CIT 10%, PIT 20-35%, VAT 18%
Treaty Jurisdictions:
Armenia, Austria, Azerbaijan, Belarus, Belgium, Bulgaria, Canada, China, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Kuwait, Kyrgyzstan, Lebanon, Malta, Mauritius, Moldova, Montenegro, Norway, Poland, Portugal, Qatar, Romania, Russia, San Marino, Serbia, Seychelles, Singapore, Slovakia, Slovenia, South Africa, Sweden, Syria, Tajikistan, Thailand, Ukraine, United Kingdom, United States, Uzbekistan
TIEA Jurisdictions:
None
