After a lengthy journey of legislative reforms in various governmental authorities and sectors of the economy, Cyprus has proven itself to become an ultimate destination for living and an advantageous jurisdiction for business people and investors.
The main arguments to support this statement are the following:
1. Cyprus is located at the crossroad of 3 continents: Africa, Asia and Europe, thus turning it into an international meeting point.
2. Cyprus has been a member of the European Union since 1st May 2004 and a member of the Eurozone since 1st January 2008. Cyprus EU membership is currently offering various benefits to investors, i.e. stability, security and many opportunities to access the EU market.
3. Cyprus is well known as having one of Europe’s most advantageous tax systems:
- It has one of the lowest EU corporate tax rates at 12.5%
- New residents and non-domiciled individuals are eligible for personal tax exemptions.
- Profit from the disposal of shares, securities, etc. are tax exempt
- No succession taxes
- No withholding taxes on interests, dividends, or royalties payments abroad (unless the recipient is a Cyprus tax resident)
- Exemption on disposal of securities (e.g. shares, bonds, debentures)
- Full capital gains tax exemption on capital gains apart from the sale of immovable property situated in Cyprus (current rate at 20%)
- Cyprus has very low tonnage tax for ship-owning and shipping companies
- No tax is payable on the profits from the operation of a vessel registered in Cyprus or on the dividends received from a ship owning company flying the Cyprus flag and operating in international waters.
- Significant tax exemptions can also be obtained by utilizing the Cyprus ‘Intellectual property box’ (IP Box) regime. The Cyprus IP Box basically provides a tax exemption of up to 80% for expenditure concerning research and development from qualifying intangible assets.
- Cyprus has double tax treaties for the avoidance of double taxation with over 60 countries.
- Overseas investors can own property under favorable terms.
4. Cyprus’ legal framework is particularly strong, due in part to mandatory compliance with EU regulations and also because Cyprus follows the English common law principles that are worldwide recognised. Cyprus legal and regulatory system is in full compliance with the EU, the FATF OECD, FATCA, Financial Stability Forum legislation and regulations, as well as EU anti-money laundering guidelines (AML).
5. Cyprus has a very strong professional service sector and highly educated people.
6. Friendly and safe environment.
7. Residents in Cyprus enjoy a high quality of life.
8. The environment is healthy and clean, it has beautiful beaches and amazing countryside with sunshine most of the days and mild winters.
9. Cyprus combines art and cultures, tasty food and fine wine.
For more information about the available options in investing in Cyprus, please contact us by sending an email to [email protected] (Maria Kannava) and/or [email protected] (Christiana Askanis). You may also visit our page on www.kannavalaw.com