Cyprus

CYAUSE Audit Services Ltd, Cyprus – Global Accounting Alliance Member

Economic Overview & Business Opportunities

Cyprus is situated in the Mediterranean Sea, at the crossroads of Europe, Asia and Africa.  Joining EU in 2004 bring major advantages to the foreign investors, such as allowing the foreign ownership of a company, increasing property demand, and signing different treaties in order to protect the interests of the entrepreneurs.

Cyprus is well known for the advantages offered to the investors, especially in the transportation areas. For example, the profits from the operations of the Cypriot vessels are not taxable. Also the dividends of the companies that own ship are exempt from tax. Cyprus has an excellent infrastructure, with 2 international airports, 3 shipping ports and a modern road network. This facilitates the export and import of goods.

Cyprus has a modern, free-market, service-based economy giving international investors and domestic businesses confidence to invest, grow and prosper. The tertiary sector of services is considered the backbone of the Cyprus economy and with a high income per capita, the consumer market is particularly strong.

Establishing a company is easy in Cyprus. The Cypriot govern is helping foreign investors in its attempt to attract foreign capital especially by using an advantageous tax system and low red tape.

With one of the lowest corporate tax rate in the European Union (EU) at only 12.5%, the island is an ideal jurisdiction for Holding Companies.  Moreover, it has 55 bilateral tax treaties, including with the United States.  Cyprus has no withholding tax imposed on dividend income, interest, or royalty payments effected to non-Cypriot beneficiaries.  Profits from overseas permanent establishments are tax exempt.

Mr. Kyriakos Tramountanellis