cus@cus.com.cy

Why Cyprus

Resilient Economy

Cyprus has an open, service-based economy supported by a stable and business-friendly tax and legal system. Unemployment rates are lower than the E.U average rate while GDP growth is one of the highest in the EU. Sectors such as energy, shipping, tourism investment funds and real estate constitute growth pillars of the gross domestic product attracting world class companies to set up and scale in Cyprus.

Legal and Tax System

    • Corporate income tax rate of 12.5%.
    • More than 60 double tax treaties.
    • More than 25 merchant shipping bilateral agreements.
    • EU & OECD compliant.
    • EU approved tonnage tax system for ship ownership, ship management and ship chartering.
    • Gains from the disposal of securities are tax exempt.
    • Profits earned from a permanent establishment abroad are fully exempt from corporation tax (under certain conditions).
    • Interest income received in Cyprus from a foreign corporation is wholly exempt from taxes in Cyprus (under certain conditions).
    • Interest income earned from trading activities, including interest which is closely related with trading activities, is subject to income tax at 12.5%.
    • National Interest deduction is available for capital investment into a Cyprus company with any business activity.
    • No exit tax rules.
    • No succession taxes.
    • No withholding tax on dividends and interest paid to non-residents of Cyprus. Also no withholding tax on royalties arising from sources outside Cyprus.
    • Group relief provisions for companies resident in Cyprus.
    • Capital gains are not subject to tax, except on sale of immovable property situated in Cyprus.
    • Tax neutrality for FX differences unless they arise from currency trading or currency derivatives.
    • Double tax relief on income subject to tax both in Cyprus and overseas.
    • Company reorganisation rules based on the EU Mergers Directive allow for tax-neutral group restructuring.
    • Attractive intellectual Property regime in line with ‘’modified nexus approach’’ (OECD Action 5).
    • 50% exemption on employment income for non-residents taking up employment in Cyprus whose income exceeds €100,000.
    • No tax dividends, interest or rental income of non-domiciled individuals.

Human Resources

Cyprus has a high availability of highly educated, multilingual, motivated individuals specialized in a variety of areas including shipping, finance, insurance and law. The majority of the population has tertiary education and speaks excellent English.

Life Quality

  • 325 days of sunshine every year
  • The highest per capita ratio of blue-flag beaches in the EU
  • High standards of healthcare
  • Excellent public and private education
  • Advanced infrastructure
  • Two modern, award-winning international airports (in Larnaca and Paphos)
  • Rich history and culture ranging from 10,000 BC to the present day
  • Scenic routes and beautiful mountains
  • Limassol ranks 26th worldwide as a maritime capital (The Leading Maritime Capitals of the World 2017 – Menon Economics)