Corporate Structuring

Why Cyprus?

Cyprus offers an attractive and transparent tax regime, fully compliant with EU, OECD and international laws and regulations.

Member State of the EU & Monetary Union:
EU membership ensures safety and stability for investors, quality, efficiency, and transparency in transactions and market access to more than 500 million EU citizens.
Strategic Location:
Ideal geographical position at the crossroads of three continents – Europe, Africa, and Asia

Legal and Regulatory Framework:
A robust legal and regulatory framework based on English Common Law principles, widely recognized as business-friendly and fully compliant with the EU, FATF, OECD directives and guidelines.
Human Talent & Level of Services
Human talent probably constitutes Cyprus’ most compelling advantage, complemented by a broad range of high-quality professional services.

Corporate Tax Rate:
12,5% on profits, one of the lowest in the EU.
Dividend Participation Exemption:
In the majority of the cases, dividend income earned by a Cyprus company is exempt from tax.
Finance Income:
Taxed as trading income and through proper planning, the resuting tax can be reduced to as low as 2,5% on net interest income.
Capital Gains Exemption:
Capital gains and trading gains on the disposal of shares, bonds and other titles are exempt from tax.

IP Regime:
Income from qualifying intangibles can be taxed as low as 2,5%.
Notional Interest Deduction (NID):
A favourable NID regime which can reduce taxable profits significantly, resulting in a low effective tax as low as 2,5%.
No Withholding Taxes:
Cyprus does not apply any withholding taxes on outbound payments of dividends, interest and royalties (not used in Cyprus) to non-residents.
Double Tax Treaties / EU Directives:
A wide network of Double Tax Treaties and application of the EU Directives (Parent-Subsidiary, Interest and Royalties) for the avoidance or reduction of foreign withholding taxes.