40 years at the top!
The system in Cyprus provided in the past, still provides today and can be expected to continue to provide in the long term a uniquely stable opportunity for the registration of international holding and trading companies. The tax system is excellent, in both European and worldwide terms, for those wishing to place their wealth securely in the long run. The more than 60 agreements for the avoidance of double taxation signed by Cyprus facilitate the redistribution of income from dividends, interest and royalties to Cyprus and the further forwarding of such incomes to other jurisdictions.
Cyprus: Your „one-stop-shop” for the last 40 years
So just what is the secret behind the popularity of Cyprus?
- To begin with, there is the 40 years which Cyprus has spent as an international financial centre;
- On top of that comes the complete package of tax benefits, which quite simply can not be matched by any single jurisdiction in the world.
Here are just of few of those benefits:
- EU membership, partnered by relatively low rates of corporate tax (12.5%);
- incoming and outgoing dividend payments are both free from tax;
- no capital gains tax;
- royalty-type income enjoys an 80% tax discount (meaning that the real rate of tax in such cases is 2.5%);
- liberal accounting regulations, creative calculation of expenses;
- numerous valid agreements for the avoidance of double taxation are in place.
Companies registered in Cyprus can also open bank accounts locally (company and bank account in the same country). This is particularly useful if the company is to be used for e-commerce purposes.
A large firm of consultants asked 400 tax specialists which EU country offered the best tax system overall. Taking everything into consideration, the specialists unequivocally put Cyprus in first place.